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Loans Canada Review

Thursday, May 30th

2024 Canadian Personal Loan Reviews

Loans Canada Review 2.5 Star Rating

Loans Canada

2.5 Star Rating
  • Loan referral service available in all provinces
  • Loan amounts ranging from $500 to $50,000
  • APRs from 6.99% to 46.96%
  • Terms ranging from 4-60+ months
  • "A+" rated and accredited by the BBB
  • In business since 2012

Established in 2012, Loans Canada proudly stands as the nation's inaugural loan comparison platform for residents of all provinces, operating with 100% Canadian ownership. Functioning as a referral provider, the service links borrowers with loans through its extensive network of lenders, aspiring to equip consumers with the knowledge to make informed financial decisions, steer clear of payday loans, and take command of their financial well-being.

Lender Database is a fantastic free resource

Unlike some loan referral services we're familiar with, Loans Canada doesn't hide who their lending partners are. In fact, they display all of them right in their Lender Database, so that you can do your research and make comparisons before you even apply. You'll find many of the lenders on our list included in that database, like Mogo, Fairstone, and Spring Financial, as well as quite a few more. You can also look up lenders by province, if that's helpful.

Your results will naturally vary

Generally speaking, Loans Canada can connect you with loan amounts between $500 to $50,000, APRs ranging from 6.99% to 46.96%, and repayment terms between 4-60 months or longer. However, your range of offers naturally depends on your credit profile and the lenders with whom you are matched.

Best Canadian Personal Loans

No surprises in the questions asked

To kickstart your borrowing process with Loans Canada, input your desired loan amount and purpose, and provide details such as your credit score range, income source and amount, and postal code. If you meet the criteria for a lender match, the subsequent steps involve providing contact information and delving into specifics about your car, financial situation, employer details, and debt-related information.

No more opting out of calls/SMS

Unfortunately, while in the past Loans Canada allowed prospective clients to opt out of phone/SMS communications from lending partners, now you're automatically opted in when you hit the "next" button after entering your phone number. On the other hand, you aren't required to create an account as part of the quote process (though Loans Canada encourages it, so that you can get a free Equifax credit score, increase your chances of qualifying for a personal loan, and track your application history).

Glitchy website experience

If you don't create an account, prepare yourself to be frustrated. We opted not to, and on the last stage of the quote process we were referred to at least one lender. However, before we could even look at the names of our options, the Loans Canada took us right to one of the lender websites (even though we clicked on nothing). And, when we hit the back button, we went right back to the start of the quote process (which took us about five minutes to begin with).

Best Canadian Personal Loans

Not much feedback from borrowers

With respect to reputation, Loans Canada doesn't do too badly. They've got an "A+" and accreditation from the Better Business Bureau, with zero complaints filed against them in the last three years. Feedback in other places is a bit slim: the Loans Canada site references a 4.4-star rating average on Google Reviews, but we couldn't find them through Google itself. Even going into the lender database to see what Loans Canada users had to say, most of the ones profiled only had a handful of customer reviews: 11 for Mogo, 1 for Spring Financial, and so on.

Can't compete with other personal loan referral platforms

It isn't that we're concerned that Loans Canada is doing anything shady with their referral platform, although the BBB wants people to be aware of fraudulent companies using that brand name to try and scam consumers. However, every time we've evaluated this service, we've been left disappointed for one reason or another. It makes us wonder if the reason why Loans Canada has so few reviews is because hardly anyone actually makes it to the point of taking out a personal loan. There are other referral services you can use to comparison shop among lenders in Canada, and we recommend you check those out instead of this one.

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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