And they pride themselves on assisting those with less-than-perfect credit. You can also apply with them if you’re self-employed or have declared bankruptcy in the past.
Having your credit score or employment status dictate your ability to borrow can be challenging. The good news is that you can borrow from lenders regardless of your credit history or current occupation.
In this LendingMate review, I’ll give you more clarity on guarantor loans. I’ll also go over how much a LendingMate loan costs and how to get started with them.
Let’s dive right in.
Why Choose LendingMate?
I’ll start this LendingMate review off by discussing the general overall benefits of using their services.
Having no credit history or being self-employed can limit you in terms of finding financing. Most lenders will weigh approving a loan on your credit score and ignore other aspects. If they see you as a risk because of your credit history, your application will likely be rejected.
With LendingMate, your credit and employment status don’t carry as much weight in your application. They accept anyone regardless of their credit standing.
Therefore, if you have no credit history, bad credit or have had other financial issues in the past, you can get funding from them. You can also get a guarantor loan if you’re self-employed or rely on government assistance.
All you’ll need is a co-borrower. This might be a family member or a friend. Or anyone else you trust to support you if you miss a payment.
You can get a loan of up to $10,000 within 24 hours of LendingMate approving your guarantor. This speedy processing is ideal, especially if you have urgent expenses.
The Pros and Cons of LendingMate
One of the most vital sections of any evaluation, including this LendingMate review, is the list of pros and cons. Here I’ll detail the good and the bad when it comes to getting a loan through LendingMate.
The Pros of LendingMate
Here’s what users like about LendingMate.
No Credit Check
Since a guarantor backs up your loan, they won’t need to run a credit check.
However, they will pull your guarantor’s credit report. This will be a soft check, so it should not affect their credit score.
All Situations Accepted
Whether you have bad credit or live-off benefits, you can get a guarantor loan from LendingMate. Also, if you are unemployed or work for yourself, you can get approved for financing.
High Approval Rate
They approve over 90% of loan applications.
Transparent Costs and Fees
You can compute your monthly pays and interest charges over the term of your loan using the loan calculator on their website’s homepage. You’ll receive an accurate result and know what a loan from LendingMate will cost you.
They also state that they don’t charge late or prepayment fees. As a result, you can pay off your loan early and avoid incurring penalties if you miss a payment.
No Collateral Needed
LendingMate Guarantor Loans are unsecured. Therefore, you won’t have to attach any assets to your loan and risk losing them if you can’t make payments.
The Cons of LendingMate
Here’s what LendingMate could improve upon.
Guarantor Required
You can’t get a loan from LendingMate without a guarantor. You’ll have to rely on a friend or family member to apply for the loan, which may not be the most pleasant request.
There are specific criteria that your guarantor must meet for your loan to be approved. They will also be accountable for the loaned amount if you can’t repay the loan.
12-month Minimum Loan Term
The shortest term you can get on a guarantor loan is 12 months.
High Fixed Interest Rate
Their loans carry an interest rate of 43% per year. They don’t offer a range of interest rates. Therefore there’s no possibility of getting a lower rate. This makes their loans quite expensive. Consequently, you must assess your financial situation before borrowing.
The fact that the lowest amount you can borrow is $2,000 doesn’t make their loans cost-effective. When you factor in the interest and the 12-month minimum period, you have yourself a costly loan.
Limited Geographic Availability
You can’t get a guarantor loan if you live outside Ontario or British Columbia.
Only One Payment Frequency Available
If you want to pay off your loan in weekly or bi-weekly installments, you won’t be able to. They only have a monthly payback plan.
LendingMate Loans
So, how does one go about obtaining a loan? This next section of my LendingMate review will take you through applying for a loan and the cost involved.
They specialize in unsecured guarantor loans. This means you won’t be able to get funding unless you have someone willing to guarantee it.
You can borrow any amount ranging from $2,000 to $10,000 for a term between 12 and 60 months.
How It Works
- Apply for a loan on LendingMate’s website.
- Forward an application link to your guarantor so they can fill in their details.
- Receive your funds within 24 hours of your guarantor being approved. The money will be paid into your guarantor’s account for security reasons. You can then arrange for the funds to be sent to your account.
- Payback the loan per the payment frequency and term you choose.
What It Will Cost
The interest on a LendingMate Guarantor Loan is 43% per year.
The best way to save on interest is to pay your loan off early, if possible. Since they calculate interest daily, you won’t be charged for the entire term of your loan, but only the period for which you owe them.
You can settle your loan early without incurring any charges.
How Safe and Legitimate is LendingMate?
When dealing with a financial services provider, it’s essential to know that you are working with a trustworthy company. That is why this section of my LendingMate review deals with the legitimacy of the institution.
LendingMate has been in business since 2017. They funded loans for thousands of Canadians. And they have consistently committed to providing a viable solution to people who can’t get loans from conventional lenders.
Judging from Trustpilot reviews, there aren’t any strong indicators that LendingMate is running a scam. They have mixed reviews, demonstrating that consumers have varied experiences.
If anything, the one-star reviews convey the importance of understanding the terms of your loan. Especially the fact that LendingMate withdraws payments automatically from your account and that they’ll send you payment reminders.
LendingMate has reasonable safeguards in place to protect your information. This includes only allowing authorized personnel to access your personal data.
They only share your information with third parties to verify it. And to transfer your funds into your bank account.
In terms of their loans, they are transparent about the fees they charge. Therefore, you’ll know what you’re getting into. Also, they don’t charge fees for late payments, letters, or loan prepayment.
Borrowing from LendingMate is much safer since you have a guarantor. If you can’t make payments, you’ll have a backup plan.
LendingMate Customer Service & Support
You can reach LendingMate by phone during business hours if you have any queries. They also provide several email addresses for various situations, such as filing complaints and sending documents.
You might get the chance to speak with a LendingMate agent during the application process. This would be an opportune time to ask questions.
In the next section of this LendingMate review, I’ll take a closer look at how to sign-up and get started on their platform.
How to Get Started with LendingMate
Before applying for a loan, ensure you have someone willing to be your guarantor. You can apply for a guarantor loan online once you do.
To begin your application, visit LendingMate’s website, then click the ‘apply’ button in the upper right corner of the screen.
You’ll need to provide information about the purpose of the loan and your personal details, such as your full name and SIN.
They claim that your Social Insurance Number (SIN) will expedite your application. However, you should first consider if you’re comfortable giving it over the internet.
Afterwards, you’ll have to provide your banking details. You’ll also need to give LendingMate permission to withdraw payments from your account every month.
Once you submit your application, you’ll receive a link to forward to your guarantor by email or text.
Your guarantor will receive a call from a LendingMate agent to confirm the loan application. You may also receive a phone call, but it’s not as likely.
Once approved, you’ll receive your funds within 24 hours, according to LendingMate.
Required Documentation
Both you and your guarantor will have to provide a government-issued ID. And they might request your bank statements.
They may also request proof of homeownership from your guarantors, such as a title deed or a mortgage statement issued within the last 12 months. This isn’t required, but it will strengthen your application.
Eligibility Criteria
Both you and your guarantor must meet specific requirements. The borrower must:
- Be between the ages of 19 and 75.
- Be a permanent resident of Ontario or British Columbia.
- Have a source of income. You don’t need to have a full-time job. As long as you can handle loan payments, you may qualify.
- Have a guarantor and a bank account.
- Have no active bankruptcy or consumer proposal.
It’s critical to pick a suitable guarantor. If you don’t, there’s a chance your application will be delayed. LendingMate requires your guarantor to:
- Be between the ages of 19 and 75.
- Have a good credit history with a record of paying their bills on time.
- Be employed so they can afford loan repayments if you can’t. Also, they must be financially independent of you.
- Be a permanent resident of Ontario or British Columbia.
Although a guarantor who owns their house is optional, LendingMate recommends it. This will improve their chances of being accepted.
Alternatives to LendingMate
Perhaps you’ve been through this LendingMate review but can’t find a guarantor. Or maybe you’re not sure about taking out a loan this way. If that’s the case, you might consider other lenders.
If you need to borrow more, look into LendDirect. They provide personal loans of up to $15,000, with rates as low as 19.99%.
They also cater to a much wider geographic area than LendingMate does. Therefore, if you live in Alberta or Nova Scotia, you can apply for a loan from LendDirect.
Alternatively, you can get a loan of up to $12,500 from ConsumerCapital Canada. The maximum amount of interest they charge is 34.99%.
They don’t rely on your credit score for approval either. Instead, they’ll look at your income. ConsumerCapital Canada serves a more significant part of Canada compared to LendingMate as well.
A great way to find a lender that won’t turn you down for financing is through an online loan search engine like Borrowell or LoanConnect.
Borrowell can help you find a lender based on your credit profile. And you can check your credit score for free while you’re at it.
Their algorithm sifts through their network of more than 50 lending institutions to find the right fit for you.
LoanConnect is another company that can match you with lenders based on your needs and situation. You can get approved for a loan of up to $50,000 and use their free service form anywhere in Canada.
You can get a loan with an APR as low as 5.75%. However, this might not be likely if you have poor credit.
Last Word for LendingMate Review
LendingMate offers a simple way to borrow money, especially if you’ve had financial issues in the past or don’t have a conventional income source.
With a guarantor, you can access funds that come with terms you can tailor to your situation. That said, their loans are ideal if you can find someone who’s financially sound to back your loan.
Despite their attractive and all-inclusive service, it’s wise to determine if getting a guarantor loan is best for you. I recommend you compare what other lenders are offering because the cost of borrowing from LendingMate is exceptionally high.
It’s also crucial to assess if you’ll be able to make monthly payments for an extended period. Because if you miss payments and cannot repay the debt, you may face serious legal consequences. And it’s not only you who might face legal action from LendingMate; it might also be your guarantor.
Our LendingMate review details everything you need to know about their services. Find out the pros, cons, & how to get a loan with bad credit.
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