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LendingMate Review

Thursday, May 30th

2024 Canadian Personal Loan Reviews

LendingMate Review 1 Star Rating

LendingMate

1 Star Rating
  • Loans only for residents of Ontario and British Columbia
  • Loan amounts range from $2,000 to $10,000
  • Terms span from 12 to 60 months
  • No origination fees or hidden costs
  • Interest rates are set at 34.9% or 43% per annum
  • Approval involves a phone call with you and your guarantor

If you've been looking for a personal loan in Canada, you might have stumbled upon LendingMate, a company that specializes in guarantor loans. To borrow money, you'll need a partner with good credit who is willing to make repayments if you can't. This unconventional method is designed to assist those with bad credit or self-employed individuals lacking the necessary credit history for a traditional loan.

Expect a call to you and your guarantor

LendingMate doesn't make its decisions based on an impersonal algorithm. Instead, they'll have a phone call with you and your guarantor, making their final decision based on "simple common sense" . If you have someone that trusts you enough to commit to making your personal loan repayments if you don't, LendingMate will likely approve your application: 95% of borrowers are.

No origination fees

We also can get behind lenders who don't charge any origination fees or hide other costs during the loan process. In that regard, LendingMate seems like a solid option for personal loans.

Only available in two provinces

However, you might find LendingMate limiting. It only caters to borrowers from two provinces (namely, ON and BC; Quebec has dropped off their list since our last review) and offers a borrowing range of $2,000 to $10,000. If you were hoping for more flexibility, this isn't the platform for you. Add to that the fact that interest rates here go as high as 43% per annum, and you'll see why we're a little skeptical about LendingMate's "thousands of loans funded each year" .

Best Canadian Personal Loans

Borrowers are really unhappy

Also, customer reviews paint a grim picture of the LendingMate experience. Approved loan applications don't guarantee smooth sailing; clients report difficulties reaching LendingMate representatives, unfunded loans, and intimidating communication regarding timely payments. "Scam," "beware," and "horrible" are words we saw more than once in customer feedback.

"F" grade from the Better Business Bureau

Perhaps the most concerning aspect is LendingMate's "F" rating from the Better Business Bureau. Customer complaints there reflect what we described earlier. To make matters worse, several complaints submitted to the BBB received no response from LendingMate.

Avoid these personal loans

Considering the multitude of trustworthy options available for personal loans in Canada, LendingMate doesn't even come close to comparing. With a dismal BBB rating and an equally poor reputation among customers, this service should be one of the last on your list.

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%.

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.

The Best Canadian Personal Loans Compare Canadian Personal Loans Compare Canadian Personal Loan Reviews What are the best Canadian Personal Loans Best Canadian Personal Loan Reviews

Canadian Personal Loan FAQ

Sometimes referred to as "instalment loans" or "consumer loans" , personal loans involve borrowing a set amount of money and agreeing to pay it back in regular payments. These loans may be for a specific purchase, like a home renovation or car, or used to pay off debts with higher interest rates.
Yes, usually. During the quote and application process, you may be asked to specify the purpose of your personal loan - but that's not a binding commitment. That information is often used to give you alternative types of financing, like debt consolidation or an auto loan.
In Canada, most providers of personal loans offer amounts that range from $500 to $50,000. Your loan offers will depend on several factors, such as your credit history, your current income, your debt-to-income ratio and your employment history.
It helps. The higher your credit score, the less you'll probably pay in interest and fees, and the bigger the amount of the loan you'll qualify for. But, if you're not quite there yet, there are some lenders who specialize in personal loans for people with less-than-stellar credit.
Most of the time, yes, without penalty. That's good to know if you're applying for a loan with a lender that only offers longer-term funding (e.g. 3 or 5 years): as long as there's no prepayment penalty, you can pay it back as quickly as you like. Read the terms of your loan offer carefully before you sign, to determine if there will be any fees if you pay it back ahead of the loan period.
Beyond the interest charged on your loan, you might have an origination fee as well. The origination fee is often a percentage of your total loan amount, and may either be added to the total of your loan or subtracted from it before you receive the payout. For example, if your origination fee is 1% of a $1000 loan, that $10 may either give you a total borrowed amount of $1010, or you may only receive a payout of $990.
That depends on how quickly you can gather any required documents for the application and on the lender you select. Once your personal loan has been approved, some providers can have the funds in your account in as little as an hour, while others may take up to a week or more to get the money to you.
Absolutely. Most of the financial services you already know and trust make their loan application process easy to complete online. Plus, doing your research on the internet helps you find the personal loan with the best rate and terms for your situation, instead of just taking whatever your local bank may have to offer. As with all online transactions, however, be sure to choose a loan provider with a proven track record: a positive rating from the BBB and numerous customer reviews are two good signs that you can trust a given lender online.
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Continued from above...

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:

  • Direct funding or referral platform. Will the provider directly fund your loan, or will they connect you with various lenders for comparison? If it's a referral service, who are their lending partners, and can they be relied upon?
  • Transparency. Does the service disclose upfront the average interest rates paid by borrowers? How hard is it to find out how much you can borrow? Are any fees clearly outlined?
  • Reputation. What do other borrowers say about the lender or referral platform? Are they rated and/or accredited by the BBB? Is the provider established and trustworthy?
  • Timeframe for receiving funds. How long will it take to get your loan funded? Some lenders can transfer money within an hour of your loan's approval, while others may have you waiting for a week or longer. Choose accordingly if you're trying to get money quickly.

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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