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Saturday, February 15th
Meet goPeer, one of the freshest faces in the Canadian personal loan scene, making its debut in the fall of 2020. This company takes a unique approach, offering a peer-to-peer lending platform where everyday investors can opt to fund your loan instead of traditional investments like the stock market. The differences from standard personal loans are quite significant, so make sure you understand what you're doing before diving into goPeer for your funding needs.
Not for Canadians with truly bad credit
Be aware that this isn't a source of personal loans for Canadians with bad credit. goPeer requires borrowers to have a minimum FICO score of 600 and a debt-to-income ratio of less than 35%. Even then, we found comments from consumers who had applied and been declined despite having credit scores in the 700s, making it even less likely that the average person will get a loan here.
Loan funds can take several days or longer to be deposited
Another big area of difference is in how quickly you can get your money after you apply. This is no "within 24 hours of applying” kind of service: loans under $10,000 take approximately 3-5 days, while those exceeding this amount extend to 6-8 days.
Origination fees deducted from loan proceeds
Be mindful of origination fees ranging from 0.5% to 5%, contingent on your risk assessment score. These fees, in addition to your interest rate, are deducted directly from the loan amount. For instance, if your loan is $10,000 with a 1% fee, you'll only receive $9,900. It's a detail worth considering, especially if you're aiming for a specific loan amount.
Live chat replaced by AI bot
In the past, we were able to use the live chat feature on the goPeer site to get answers to our questions. That feature is still there…sort of. It's now a bot (hello, AI world), and it didn't do too well on giving us basic information like "what provinces do you serve?” Instead, we were asked to provide an email address so that an agent could respond within a business day. This was during regular weekday business hours, so it was disappointing not to be connected to an actual person when we tried.
BBB improving but feedback is still limited overall
goPeer now has an "A+” rating from the Better Business Bureau, a half-grade improvement since our previous evaluation. There was only one complaint filed with the BBB in the last three years. But we still have a hard time finding comments from borrowers, positive or negative. Even on Trustpilot there were only six comments (with a middle-of-the-road rating of about 3 stars), and some of those came from goPeer investors.
Intriguing option, but may be a little risky
Should you entrust your finances to this peer-to-peer lending platform? The concept is undoubtedly intriguing, particularly in the Canadian landscape. If you love being a trendsetter, goPeer might offer an interesting borrowing experience. However, the novelty factor is balanced by the company's "youth” and overall lack of feedback from borrowers, and it raises the question of whether or not you're ready to put your proverbial eggs in the basket of a relatively new player.
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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