As a Canadian, you have probably heard of institutions such as Mogo Finance, Fairstone Financial, Borrowell, EasyFinancial, and Cash 4 You. This article offers an in-depth review of each lender in order to save you time and frustration when you have an urgent financial need.
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Personal loans are a way for many of us to pay for various financial needs, especially emergencies and other unplanned purchases. For example, it’s not uncommon for owners of small businesses to take advantage of personal loans to cover cash flow shortfalls. People’s other expenses might be student loan repayments, car repairs, home renovations, and medical emergencies.
Fortunately, there are lots of financial institutions that understand the demand for personal loan offerings. This is why it’s not difficult for anyone to find a loan service they can apply for.
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As a Canadian, you may have heard of institutions such as Mogo Finance, Fairstone Financial, Borrowell, EasyFinancial, and Cash 4 You. These financial institutions offer a wide range of financial services like personal loans for their clients in need.
However, as someone in need of urgent funds, talking to each of these institutions to get an in-depth idea of what they offer and why they’re unique will take a lot of time. That’s why in this review, we’ll make an in-depth loan comparison of personal loans from these financial institutions. We’ll look into their pros and cons as lenders so you can decide which institution is right for your needs.
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Mogo Finance: The Hip And Modern Canadian Loan Service
People looking for reliable financial institutions may get their personal loans from Mogo Finance. Unlike other lending companies, Mogo Finance advertises itself as a “hip” service, boasting modern ways of tackling usual financial situations such as loans with a comprehensive app, credit score tracking, and other personalized services.
Personal Loan Requirements
Unlike other lenders, Mogo Finance only offers their services in certain areas. To qualify, you must be a resident of one of these locations in Canada:
- British Columbia
- New Brunswick
- Newfoundland & Labrador
- Nova Scotia
- Prince Edward Island
- Northwest Territories
Other than that, you must also be 18 years old or older and must present these documents upon application:
- Proof of income
- Recent bank statement (your bank account should be active)
- Proof of employment (you can ask your employer for a certificate or you can show your complete employment history as proof)
- Mogo Finance is partnered with Equifax, one of Canada’s largest credit bureaus. As such, clients can get periodical credit score reports without extra fees.
- Your credit score will not be affected during pre-application. You’ll have the ability to test beforehand if you’re eligible or not, which will actually save you time.
- They offer to retrieve your credit score for free. Knowing your credit score before applying will help you determine if you’re qualified or not. This opportunity also lets you know if you need to increase your credit score before applying.
- Mogo Finance’s terms are flexible. They can provide terms that will be suitable to your financial capability and budget.
- Customer service inquiry is available 24/7.
- Mogo Finance has a mobile application where you can track your outstanding loans as well as any other services of Mogo you’re using.
- They’re more safe and secure as they have bank-level security.
- If you’re not satisfied with their service, you can immediately back out as they have a 100-day free trial.
- Mogo Finance gives high interest rates to those who apply for larger loans. They also base your loan’s interest rate on your credit score, which can be a disadvantage if you have poor credit. Before you finalize your loan, you can use Rate Genie to check Canada’s best rates.
- They have penalty fees for NSF (non-sufficient fund) which costs around $20 to $50.
- Apart from the agreed amount, there are also additional charges that Mogo Finance might ask you to pay.
If you’re into lending companies that have a mobile application process, Mogo Finance is definitely for you. You can track your loans and services with just a few taps anytime, anywhere. Having the ability to try their services with no strings attached is also a huge plus, as you can decide later on if you’ll push through with their services or not. However, Mogo Finance is not suitable for Canadian borrowers who have a poor credit score or those who are expecting to get a lower interest rate.
Fairstone Financial: Loans That Suit Canadians Like You
Fairstone Financial can provide personal loans that aren’t just affordable but also able to meet your specific budget and needs. They have more than 235 locations across Canada, with more than 1,000 lending specialists that can help personalize your loan according to your needs.
Personal Loan Requirements
Canadians can apply for a Fairstone Financial personal loan online. However, the company also has some requirements if you want to apply for a personal loan, you must:
- Present a government-issued ID, such as a Canadian passport or driver’s license.
- Provide proof of income, such as a CPP statement, your latest T4 document, or recent pay stubs.
- Present proof of residence. If you’re renting an apartment, you need to present rent verification in the form of a lease agreement.
- Fairstone Financial may let you borrow up to $20,000.
- They have lower interest rates compared to banks.
- They also offer loans to those who have fair to good credit scores.
- Fairstone personalizes the terms of your loan depending on your credit score and financial capabilities.
- Despite the maximum amount of $20,000 for a personal loan, the actual total of your loan will depend on factors such as your credit history, income, and residential status.
Fairstone claims to be the gray area between banks and private lenders. This will be a better choice for Canadians who have a lower credit score. But keep in mind that it’s possible they’ll give you higher interest rates. Fairstone also offers free quotations for their clients.
Borrowell: For Canadians Who Want to Live Well and Save Well
Borrowell was only established in 2014 and has since then provided thousands of Canadians with affordable and accessible personal loans. They offer customizable loans specifically to fit your financial situation.
Personal Loan Requirements
As with other financial institutions, Borrowell has certain requirements for them to consider your loan application. These include:
- Your most recent credit score and credit report. It’s best you check your report beforehand to see if it has incorrect or outdated information. Also, your credit history should be at least a year long.
- Your employment history. It’s recommended that you have a job where you earn at least $20,000 annually. When organizing your employment history, organize your proof of income with paychecks and supporting bank statements.
- Details on your recent and current debts.
- Proof of residency, as the conditions of your loan may change depending on where you live.
- Details on your bank account transactions, which can come in the form of a bank statement.
- Your most recent Notices of Assessment, especially if you have more than one job or are retired, self-employed, on maternity leave, or living on disability.
You can apply for a Borrowell loan online.
- Borrowell has been accredited by the Better Business Bureau since 2017 with an A+ rating, according to customer reviews.
- You can get personal loans of up to $35,000.
- The Borrowell website clearly states loan origination fees, meaning you won’t have any surprise fees.
- There aren’t any penalties on prepayments and lump-sum payments, which lets you plan your repayments with more flexibility.
- Your credit won’t suffer if you check your potential interest rates. Moreover, on-time and full payments can greatly increase your credit score.
- You may have to pay non-sufficient funds penalty of around $25 to $54.
- You can only make monthly repayments.
- Your credit score will decrease if you make defaulted payments and hard inquiries.
- Your application will likely be rejected if you have debt-related issues, low income, or low credit score (around 300 to 600).
Borrowell personal loans provide easy access to huge loans, enabling you to pay for immediate bills or finally get that dream car or dream house. They also offer flexible plans depending on your needs, and their lack of penalties for prepayments can do wonders to your repayment schedule. However, you can only make your repayments monthly, and hard inquiries may decrease your credit score.
Easyfinancial: Money That Matters for Canadians
Easyfinancial is committed to providing Canadians with easy access to various loans, which can come in handy, especially when financial institutions such as banks may decline your requests. Having been operational since 2006, Easyfinancial boasts a tried-and-tested Canadian loan service that can help you when you’re in a bind.
Personal Loan Requirements
To apply for Easyfinancial personal loans you need:
- Proof of income that shows you earn at least $1,200 monthly. This can come in the form of T4 slips or recent pay stubs.
- Proof that you’re past your province’s age of majority (at least 18 or 19 years old). This can be in the form of government identification with a photo, a driver’s license, or a passport.
- An active bank account that allows direct deposit. You may need to show your most recent bank statement for this.
- A pre-authorized debit form or a void cheque.
Easyfinancial offers a much faster and more convenient way of applying for a personal loan, which makes them a great alternative to institutions that are strict toward borrowers with unpaid debt, bad credit, and low income. Applicants can finish their applications online in just 10 minutes, and results usually arrive within 30 minutes. When approved, the borrower’s loan will likely be deposited in their bank account on the same day.
- They offer personal loans of up to $15,000.
- Their basic personal loans can be paid within 9 to 60 months, depending on the accepted term. Larger loans may have a 72- to 120-month term.
- They have a loan protection program that can cover your first half-year of payments if emergencies happen, such as loss of employment, injury, or sickness.
- Easyfinancial can be accessed through one of their 200 branches across the entire country.
- They have flexible repayment plans and adjustable interest rates.
- Despite the “easy” application process, they may still lean toward applicants with good credit (660 to 900 credit score), a decent monthly income and a full-time job, no recent financial delinquencies (bankruptcies, proposals), and with collateral.
- Their annual interest rates can range from 19.99% to 46.96%.
- They have a prepayment penalty of three months’ worth of interest.
- The company may charge extra administrative fees and additional taxes depending on the province.
- They have penalties for defaulting, such as when you miss payments, have late payments, or have short payments.
With the above in mind, Easyfinancial seems to be a decent financial institution that can provide easy access to loans, especially if you need them the same day. However, it’s important to remember that they might have rather large penalties for late, short, and missed payments. Therefore, you should ensure you can comfortably meet their monthly repayment terms before you apply for a loan here.
Cash 4 You: For Canadians’ Quick Financing Needs
Ontario-based Cash 4 You has been servicing Ontarians with its personalized financial services since 2001. Thanks to more than 100 physical branches in Ontario, Cash 4 You can provide a wide range of services that can accommodate Canadians’ various financial needs, such as Western Union transfers, check cashing, payday loans, and installment loans.
Personal Loan Requirements
Here are the requirements you need to fulfill if you want to get an installment loan from Cash 4 You. You must:
- Be at least 18 years old and live in Ontario.
- Present a government-issued photo ID.
- Have proof of income, such as payslips.
- An existing bank account.
In order to apply, you simply need to complete their online application. They have sections pertaining to your income and personal information, both of which you need to fill up carefully. If you manage to provide all the right details, you may be able to get your loan approved on the same day.
- Cash 4 You offers personal loans of up to $15,000.
- Unlike other lenders, Cash 4 You has more than 100 branches, all located in Ontario. This option allows you to apply for your loan either online or in-branch, depending on your preference.
- You don’t necessarily need to have a great credit score to obtain a loan. Cash 4 You offers personalized loans, meaning there’s likely a customized plan for your needs.
- Cash 4 You is transparent regarding its terms and conditions. This means there aren’t any prepayment penalties, no add-on insurance fees, no closing costs, and no origination fees.
- Cash 4 You only offers their services to Ontarians, meaning you need to be in Ontario, Canada in order to avail their loan.
- Their interest rates can be quite high.
Cash 4 You offers a fast and easy way for Ontarians to get personal loans, which can come in handy in terms of emergencies. Unfortunately, if you’re not in Ontario, you may not be able to enjoy the services Cash 4 You offers.
The Bottom Line When It Comes to Canadian Loans
With the above in mind, it’s obvious that it can be challenging to choose just one reliable financial institution for personal loans. After all, these financial institutions offer different advantages and disadvantages in their offerings that may be useful or useless depending on your needs. We suggest narrowing down your choices to two or three lenders and then doing more focused research in order to single out the best financial institution for your unique case.