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Mogo Review

Thursday, May 30th

2024 Canadian Personal Loan Reviews

Mogo Review 2 Star Rating

Mogo

2 Star Rating
  • Line of credit up to $3,500
  • Funds available via direct deposit or Interac e-Transfer
  • Available to residents of British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI or Newfoundland
  • $15.99 to $16.99 per month for MogoMini Service Bundle
  • 100-day satisfaction guarantee
  • In business since 2003
  • "A-" rated by the BBB
  • Over 1.8 million Canadian members

Mogo is a Canadian financial technology company that offers a range of digital services. Known for its innovative approach to personal finance, Mogo provides features such as free credit score monitoring, identity fraud protection, and a digital spending account. Additionally, Mogo stands out for its cryptocurrency offerings, allowing users to buy and sell Bitcoin through its platform. Since 2008, the company has aimed to empower individuals to take control of their financial health.

Line of credit, not a term loan

Mogo has drastically changed their personal loan offering since our last review. It's called MogoMoney, and what you get now is a line of credit up to $3,500, rather than a term loan. That means that if you only make the minimum payments each month, you'll never pay down your principal balance, only the interest.

Understand the eligibility requirements

To qualify, you'll need to be a resident of British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI or Newfoundland. Successful applicants typically have a minimum annual net income of $13,000, steady income of at least 30 days, and verification information like a copy of your ID and your bank details.

You'll have to create an account

It takes around three minutes to create a MogoAccount and see if you've been pre-approved for MogoMoney. There's no impact on your credit score until you decide you want to complete the formal application. Just follow the instructions on your account to finish the process. If approved, you can receive your funds via direct deposit or Interac e-Transfer.

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Fee-based services to complement your line of credit

There are a couple of add-on features you may want to consider with your MogoMoney line of credit. First, there's the MogoMini Service Bundle priced at $15.99 to $16.99 per month. The benefits include the following:

  • Free Moka account: helps you save and invest automatically, with as little as $5/week
  • Skip a payment twice a year
  • Free email money transfer funding ($19.99 value)
  • Waiver of waiting period when line of credit is paid in full and you want to borrow again
  • Waiver of NSF fee
  • Remain in good standing with one missed payment
  • Priority status on line of credit advances

Some accounts can use Level Up feature

Another benefit offered by Mogo is Level Up. After at least three months, if your payments have been made on time, you may be eligible for an increase on your credit limit. However, while we initially thought this was a feature available to all MogoMoney clients, the FAQ made it sound like it's only offered to those subscribing to the MogoMini Service Bundle described above.

100-day "free trial"

If you opt for MogoMoney, you've got a 100-day trial period to decide if the line of credit meets your needs. If not, you can return all of the principal and get a refund of any interest and fees you've paid in that 3+ month period. But, given that most people aren't going to have that cash still on hand (after all, they borrowed it to USE it), this feels more like an effort to look good rather than provide a benefit that clients will use.

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Solid rating from the BBB

How does Mogo do in terms of reputation? Their grade from the Better Business Bureau has dropped a little since our last review, but it's still a respectable "A-" . There were 59 complaints filed over the most recent three-year period: not bad considering nearly 2 million Canadians are part of the Mogo community.

Loan customers aren't happy

However, when looking at the feedback strictly for loans, there are a lot of unhappy Mogo clients. It seems that Mogo structures its MogoMoney as a payday loan, which has affected the way that it's reported to the credit bureaus: one borrower complained that his or her payments were only going to TransUnion and not to Equifax. Others didn't understand that they were getting a line of credit and not a term loan (which is understandable, given that most people read "personal loans" and don't think "line of credit" ); when they were making minimum payments, they didn't realize it was never going to pay down the principal. Is that Mogo's fault? Not necessarily, but it makes us wonder if they could be doing a little more to make absolutely sure that their borrowers are 100% clear on what they're getting here. That might make it less likely that Mogo will continue getting 1-star ratings from angry clients: on Trustpilot, 78% of reviews are that low, with only 12% giving the company a perfect score.

Best left as a last resort

MogoMoney could be an option if you can't get a traditional personal loan somewhere else. But, you should be absolutely clear on what it is and what it is not: if you only make the minimum payments, you will only be paying interest, and you may be in for a nasty surprise when you think you've paid in full. We definitely recommend checking out the other options on our list for personal loans in Canada before you sign up for Mogo's services.

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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