Who Offers the Best Personal Loans in Canada? In urgent need of some quick cash? Unless you've got a friend or family member ready to lend a hand, your next stop is likely a financial institution. However, not all lending avenues are the same, and some unscrupulous lenders out there are charging interest rates well beyond 100%.
Good
Fairstone Financial, a prominent Canadian lender since 1923, helps borrowers across Canada, including those with varying credit histories. With a longstanding commitment to customer satisfaction, Fairstone Financial has been a trusted option for more than 3.3 million individuals seeking accessible and reliable personal loan solutions.
Secured and unsecured personal loans offered
Unlike lots of personal loan sources in Canada, Fairstone offers both secured and unsecured formats. What's the difference? Secured loans use your home or vehicle as collateral (and thus you get lower interest rates, because the loan is less risky for the bank), while unsecured loans aren't backed by anything you own (with higher interest rates and less risk for you).
Watch out for details in the fine print
There are a lot of ins-and-outs in the details of your Fairstone personal loan that you absolutely must pay attention to. For example, in the FAQs, we discovered that there's no prepayment penalty on their unsecured personal loans, but there are when you pay off a secured personal loan earlier than the term. Ouch.
Higher-than-average interest rates
You'll also want to be very clear on your interest rate. Most of Fairstone's rivals will tell you (albeit in very small print) at the bottom of their website what they charge as a minimum and maximum; here, we were only able to spot that interest rates start at 19.99% on secured loans, 26.99% on unsecured loans. That's a much higher beginning point than pretty much every other Canadian lender we evaluated.
"A+" from the BBB, as expected
We're not quite sure what to make of Fairstone's reputation. Of course, being in business for over 100 years should put to rest any worries that it's not a legitimate source of personal loans in Canada. The company has the "A+" rating and accreditation from the Better Business Bureau that you'd expect from a lender that's been around that long.
A few too many 1-star reviews
But, when we jump to other places like Trustpilot, we see a lot of mixed feelings: in fact, among the 300+ ratings left there, 60% gave Fairstone a 1-star score (and only 35% were 5-star reviews). Yes, Fairstone reps responded to those negative reviews, but it felt like some of their take was "we're so sorry you didn't read the terms closely". When hundreds of people are having trouble understanding the terms of their personal loan to the point that they feel swindled during the course of the loan, that might be an indication that Fairstone could be doing a better job during the application and funding process.
Long history, but pay attention to the terms of your personal loan
Fairstone has a long history in the Canadian financial world, and multiple types of personal loans to choose from. For most people, this will be an option to get the funding they want. Still, we would advise borrowers to pay very close attention to the terms of their loan before they commit, maybe even having a trusted friend or advisor go over them as an extra set of eyes. There are quite a few Canadians who have felt taken advantage of by Fairstone Financial's personal loans, and that keeps us from giving the lender a higher rating.
Continued from above...
In urgent need of some quick cash? Unless you've got a friend or family member ready to lend a hand, your next stop is likely a financial institution. However, not all lending avenues are the same, and some unscrupulous lenders out there are charging interest rates well beyond 100%.
Fortunately, for those seeking personal loans in Canada, there are lenders that can help you bridge the financial gap without sinking you further into trouble. The online world presents Canadian consumers with a wide variety of options for personal loans. Some directly link you with funding, while others act as intermediaries, connecting you with reputable financial partners to secure your loan.
A relatively new player gaining traction is the social lending network, or peer-to-peer lending, where everyday individuals invest in funding loans for their Canadian neighbors. This arrangement creates a win-win, with investors earning on the interest you pay and you getting the funds you need without sky-high rates or fees.
Regardless of the path you choose, it's crucial to understand the terms of any personal loan offers you receive. Not repaying a loan (on time or at all) can have a detrimental impact on your credit score, a setback that can be challenging to set right down the road.
Before signing on the dotted line, make sure you're clear on the interest rate, repayment terms, and any potential origination fees or prepayment penalties. While the allure of accepting the first cash offer you receive may be strong, take your time and be a discerning consumer.
As you navigate the array of personal loan options in Canada, you'll need to figure out where to start and which service to trust. Consider these factors:
For an in-depth review of the best online sources for personal loans in Canada, look no further than our list here at Top Consumer Reviews. We're confident that our insights will assist you in quickly getting the funds you need with terms you can manage. Be a well-informed borrower on your financial journey!
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Easy Ways to Start Saving Money
Saving money isn't fun. Why put it somewhere when you could spend it now, on that thing you've been wanting for months? Well, there are some easy and simple ways to start saving now, so that if there's an emergency - like a car accident or an unexpected health bill - you can be assured to have money for it. Being prepared isn't the trendiest idea, but in the future you'll thank yourself for saving your behind!
Saving money doesn't have to be all dark and dreary. There are a variety of small changes you can make to your daily routine to start preparing for the future.
The first tip to cut daily costs might just be the hardest for some. Many people spend money every day on coffee, especially from those expensive java bistros. Cue the gasps - but if you're still reading, then listen to this: While many people spend money on coffee every morning, major coffee companies (you know the ones) upcharge drinks to an almost comical degree. The reason these companies get away with this is because they count on the consumer being unwilling to make their own and come to them instead. You don't even have to get up any earlier if you make your own cup of coffee in the morning, since you'll be saving time on your commute. But getting up every morning and making your own coffee is a much more cost efficient alternative to giving a chunk of your paycheck to some other company.
Another simple trick to saving money is to cancel subscriptions you're not using. We can almost hear you shrieking "but what if I need to use it!" The thing is, you won't. If you're spending even $10 a month on something that you're not using, than it's not worth it. It's hard to stop something that used to bring you joy, or even that you're used to. But if you seriously want to start saving money, this is one of the most achievable and easy ways to do it. Go through your spending and look at all the things you're paying for that you didn't use this month. Then, go back and look at the previous month. If that isn't enough to convince you, go back one month further. If you haven't used something in 3 months, then you've spent a quarter of the year paying for nothing and it's time to stop.
A final bit of advice on the best ways to save money is another little thing. Use the 48 hour rule. If you see something and really want it, wait 48 hours. If you still want it after that, than you know it's not an impulse buy. On the other hand, if you've completely forgotten about it, then you just saved yourself some money.
It's especially difficult, the younger you are, to get out of the You Only Live Once mindset. You see something, and you think "hey, I really want that thing! I'll totally use it all the time, even though I've never thought about it before today!" Really - it's not worth it. You have to stop thinking "I need this now because it will make me happy", and instead think of the future. When considering whether you should blow your money on the impulse buy, picture the expensive item and think of how much more you'll enjoy it if you save for it.
These are just a few little things you can do to start saving money. Remember that it's important to save your money now, in order to save yourself future heartache. Soon you'll be on your way to affording that trip to Paris or whatever else you want!
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