The Most Affordable Personal Loans in Canada
Maybe you need money for a sudden emergency, everyday expenses, to pay down high interest credit card debt or to consolidate a bunch of loans.
Regardless of the reason, a promising roster of new online lenders is cutting out the middle man – banks and credit unions – and offering faster, simpler, cheaper personal loans Canada has eagerly anticipated.
With personal loans as high as $35,000 and rates as low as 5.6%, companies like Borrowell are taking on Canadian banks in the same way ING once took on bank deposits – with lower costs and greater convenience.
With loans between $300 and $10,000 lenders like Affirm Financial are offering credit where only pay day lenders used to play – at much lower rates.
In less than 2 minutes, you can apply for an installment personal loan from the comfort of your home and within seconds get approved with the rate, loan size and monthly repayment schedule, with no impact to your credit score.
Personal loans are especially convenient for larger borrowing sums, a short term cash crunch or reducing current interest rates. They also make sense if you want to make one monthly payment over a fixed term, helping you budget over the long term, without having to worry about multiple payments and accumulating interest.
The promising news? Borrowell claims it saves the average customer $5,300 in credit card interest per loan – validating Canadians are finding value.
These personal loans are designed for customers with excellent, good, average and poor credit scores. Borrowell is serving customers with credit scores as low as 660 and Affirm goes even lower.
Affirm Financial VS Borrowell
|Loan Type||Monthly Installment||Monthly Installment|
|Loan Term||6 months to 5 Years||3 & 5 Year Terms|
|Minimum Credit Score||Not available||660|
|Minimum Income||Employement or Regular Income||No Min (all income is reviewed)|
|Funding||2-4 business days||24-36 Hours|
|Early Payment Fees||None||None|
|Get a Quote|
Based on how fast & easy it is to get a quote, if you think you have a good credit score and you’re looking for a personal loan, we’d recommend getting a quote from Borrowell first. Because Borrowell performs a soft credit inquiry, there is absolutely no impact on your credit score when you get a quote.
If you get approved for a loan with an interest rate you like from Borrowell, complete the process. If you don’t get pre-approved, then you can try applying for an Affirm loan, which comes with a higher interest rate, but a better chance of approval.
The Personal Loans Canada Has Been Waiting For:
- Fast and easy application: Borrowell offers you a personalized quote, with no impact to your credit score. It will show you the interest rate, size of the loan and payment schedule, and you’ll never need to visit a branch to complete your application.
- Flexible financial tool: You can use your personal loan to pay off high interest credit cards, pay for major purchases, finance home improvements, fund small businesses, pay for vacations, weddings or other financial objectives.
- Low fixed rates & payments with no hidden fees: Interest rates depend on your credit profile and risk, with rates as low as 5.6% for Borrowell to 29.9% for Affirm. Compared to credit card interest rates of 19.9%+ and payday loans with annual interest over 500%, they can offer significant savings.
- Prepay and save: You can prepay your loan at any time, and you’ll never have to pay a prepayment fee or penalty.
- Single, convenient monthly payment: Loan payments are automatically scheduled every month, as pre-authorized payments directly from your bank account. No checks or wire transfers, or remembering to pay each of your credit card bills.
- Boost your credit score: Did you know that paying off your credit cards or consolidating your debt can increase your credit score? One peer-to-peer lender claims that 77% of borrowers experience an average FICO increase 21 points within 3 months of obtaining their loan (a result of decreasing utilization rates)!
- Get funded within 24 hours: You will receive your funds between 24 to 36 hours from Borrowell and 2-4 business days from Affirm after approval.
Once you’ve been approved for a loan and received a quote, you’ll have to verify your income to get funded.
Borrowell is really simple. They will require that you 1) scan or take a photo of your two most recent pay stubs and upload or email them. If you don’t have pay stubs, you can submit the “Notice of Assessment” from your last two tax returns. 2) Securely provide your bank account number to Borrowell’s deposit partner, VersaPay.
Affirm will actually verify your identity over the phone, making things a little simpler. They will require a copy of a void check. However, they may not require a copy of your pay stubs, depending on the strength of your application.
While we don’t know the exact approval criteria for Borrowell and Affirm, the criteria below are pretty certain disqualifiers. Borrowell has a higher standard than Affirm. The big advantage with Borrowell is that they will pre-qualify you and provide you with your rate, without impacting your credit score at all, so you might as well give them a shot first.
- Be a Canadian citizen or permanent resident
- Not currently in bankruptcy or consumer proposal
- No outstanding loans with a pay day lender such as Mogo or Money Mart
- No unpaid debts currently in collection
While personal loans can be a great option to pay off credit card debt, we’d still recommend you explore doing a balance transfer at 0% for 12 months first. However, when the 0% promotional balance transfer rate expires at the end of 12 months, or, if your balance transfer credit line is not high enough, use a personal loan to pay down the rest of your balance.
If you’ve gone through the application process or have taken a loan with Borrowell or Affirm, we’d love to hear about your experience.