As one of the most well-known alternative lenders in Canada, Mogo Financial has been a go-to financial resource for many Canadians who are looking for extra cash to cover unexpected bills. The company offers different personal loan products that can help you pay for medical bills, emergency car repairs, home renovations, and other unforeseen expenses.
If you’re looking for Mogo reviews to help you determine if Mogo is the right lender for you, you’ve come to the right place! There’s no denying that personal loan providers have gotten quite popular in Canada in recent years. Private lenders have sprouted left and right to serve as an alternative to loans from traditional banks. Because of the sheer number of options available in the country, zeroing in on the right provider has become more challenging than ever.
So, what exactly does Mogo Financial offer? And is it the right lender for your needs? Let’s find out!
Before we discuss Mogo’s loan requirements and application process, let’s briefly look at the different financial products offered by Mogo.
What financial products do they offer?
Mogo is perhaps most popular for its personal loans. However, the company also offers various other financial products to help out Canadians with their needs:
- Credit score monitoring
- Identity fraud protection
- Debit card (the Mogo Visa Platinum Prepaid Card)
Mogo also has an investment-related service called MoneyClass. You can also use their MogoCrypto service to buy and sell bitcoin in Canada.
Who can apply for a Mogo loan?
Canadians over the age of 18 are welcome to apply for a loan from Mogo — with the exception of individuals residing in Quebec. Like most other big-name alternative loan providers, Mogo requires you to be in stable employment and earning a minimum of $13,000 annually.
While an excellent credit score will certainly help your application, it’s not a requirement. Mogo recognizes that many people with flawless credit are more inclined to loan from established banks. So if your credit history is less than ideal, Mogo is definitely an option.
Loan amount and repayment
Mogo lends users between $500 and $35,000, with the minimum term being two years and the maximum being five years.
Fees, penalties, and interest rates
While having a good credit score is, as mentioned above, not required to be granted loan approval, you’ll still enjoy some advantages if you do have a good score. The better your credit history is, the higher the chances of you enjoying more competitive interest rates.
The average borrower can expect to be granted loans with interest rates of between 20 to 25 percent — a bit lower than that if your credit score is great. On the flip side, you can expect to be slapped a mind-numbing 40 percent interest rate if your credit score is particularly poor. You can check sites like Rate Genie to get a better picture of how other lenders compare.
The loan application process
Mogo prides itself on being one of the first to offer a completely online loan application process. Their qualification and processing have always been pretty efficient, and this is definitely one of the main pros of working with Mogo.
To begin your loan application process, all you have to do is input the amount you need to borrow and your preferred repayment terms on the site. You will also be asked about your source of income. They will then work with Equifax to check your credit score, paying close attention to things like your credit utilization ratio. They will make a decision based on their findings.
Once they determine that you are qualified for a loan, you will be asked to submit documentary requirements such as:
- Proof of identity
- Proof of income
- Proof of residence
- Bank account details
Take note that approval will depend on the docs you submit. But if you manage to make it to this stage, you’re pretty much assured of being granted the loan as long as all the papers you submit are in order.
Is Mogo the way to go?
So, is Mogo the right lender for you? Let’s look at the pros and cons to help you make the right decision.
- They offer a 100-day cooling period.
- Mogo has more lenient credit score requirements than other big private lenders.
- They have a relatively low minimum income requirement.
- The application process is simple and easy.
- They charge extra fees on top of the interest that, while small, do tend to add up.
- You’ll likely be slapped high interest rates if your credit score is less than ideal.
- Their missed payment fees are relatively high.
At the end of the day, we recommend Mogo if you want a fast, reliable lender with a seamless application process and flexible terms. But if your credit score is poor, you might be able to score more competitive offers elsewhere.