Mogo Loans: Should You Stay Away?

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People who need to take out personal loans are almost always on the lookout for lending institutions that have flexible terms and requirements that fit their budget. If you’re in Canada, Mogo Finance may be able to provide you with the appropriate loan for your financial concerns, one with flexible terms that could work well with your unique situation.

Mogo Finance offers a lot of services, including mortgages, cryptocurrency, and credit card loans. However, it’s also known for its personal loans.

Mogo Personal Loans

Mogo Finance offers a personal loan product for people in need of quick cash to spend on urgent needs. Mogo personal loans have these features:

  • You can avail loans of up to $35,000 with varying interest rates depending on your needs and requirements.
  • Mogo Finance offers flexible terms that can help you tweak your personal loan.
  • You can get pre-approved in 3 minutes, and their product specialists can also answer various questions regarding the approval process.
  • You can test their service for 100 days. If you don’t like their service, you can return the principal within the first 100 days and they’ll refund your payments.
  • Being accepted for a Mogo Finance personal loan gives you a MogoAccount, which you can view using their Mogo Finance app.
  • As an Equifax partner, Mogo Finance can give you access to your credit score every month without any additional fees. This can help you keep track of your financial status.

Mogo Loans: Application Requirements

Applying for a Mogo loan is fairly easy, and you can check the necessary requirements on the Mogo Finance website. Their requirements may change depending on the kind of loan you’re looking for, but they do have some basic requirements you need to fulfill:

  • Mogo Finance isn’t available in all parts of Canada. If you’re considering availing a Mogo Loan, you should be a permanent resident of these territories or provinces:
    • Provinces:
      • New Brunswick
      • Newfoundland & Labrador
      • Saskatchewan
      • Nova Scotia
      • Prince Edward Island
      • Manitoba
      • Alberta
      • British Columbia
      • Ontario
    • Territories
      • Nunavut
      • Northwest Territories
  • You need to be able to prove that you’re in the age of majority in your respective territory or province.
  • You need to have an active bank account, which you can prove by submitting recent bank statements.
  • You need to be employed at least 30 days by the time of application.
  • You need to have proof of income, such as pay stubs and paychecks.
  • As an institution under Equifax, they’ll likely perform a credit check to thoroughly investigate your financial status. Mogo Finance does this to get to know your spending habits, your recent debts, and if you’re involved in other financial concerns such as bankruptcy or consumer proposals.

Mogo Loans: What Are Other Considerations?

If you’re thinking about getting a Mogo personal loan, here are some facts and details to consider:

  • Your Mogo personal loan will depend on certain requirements:
    • Your credit score will definitely affect whether your loan will be approved or not. You’ll get a higher chance of approval if you have a credit score between 660 and 900.
    • Your territory and province of residence may be a factor in the final cost of your personal loan.
    • Your current employment as well as your annual income will be a factor in how much you can loan. You need to earn a gross annual income of $13,000 to qualify.
    • Mogo Finance will look into your outstanding debt, existing debt, and other credit problems.
    • Your repayment term length and other administrative fees may also affect your total loan cost.
  • You can improve the likelihood of being approved if you have complete requirements. If you submit proof of employment and sources of income, Mogo Finance may give a decision about your application much faster.
  • You can also get lower interest rates if you have a good credit score. It would be better if you research Canada’s best rates beforehand. Websites like Rate Genie provide relevant information on this aspect.
  • Your payments may either go toward the principal, the interest, or both aspects of your loan. This factor depends on where you live and what repayment options you choose.
    • For instance, if you have a MogoMini loan, your minimum payment will go to your interests as well as other services and fees. If you make additional payments, that’s the time it will be deducted from the principal amount.
    • Meanwhile, your minimum payment for a MogoLiquid loan will go to your principal first, and then towards your interest and optional services afterward.
  • You’ll have to pay a fee for non-sufficient funds. You’ll get this penalty if you assigned Mogo to automatically get your repayments from a bank account but you don’t have enough money in it.
  • Mogo will allow you to make your repayments ahead of time, provided they’re notified that you’re planning on making an earlier repayment.

Pros: Mogo Personal Loans Might Be For You

Here are some of the advantages you can get when you apply for a loan under Mogo Finance:

  • Since they do their transactions over the internet, you can submit your applications and check on your loans anytime, anywhere, for as long as you have an internet connection.
  • Thanks to their online-only transactions, they can provide online assistance 24/7.
  • Aside from personal loans, they offer a wide range of financial services such as mortgages, business loans, and other financial needs.
  • If you’re not satisfied with their service, you can return the money you’ve lent them as they have a 100-day money-back guarantee.
  • If you demonstrate good repayments with Mogo Finance, they’ll reflect this in your credit report. Since they work with Equifax, one of Canada’s biggest credit bureaus, this can increase your credit score.
  • Mogo Finance clients are eligible for benefits such as pre-approval for a personal loan under MogoMoney, free monitoring of their credit score, and the Mogo Visa Platinum Prepaid Credit Card.

Cons: Mogo Personal Loans Might Be Risky

Here are some disadvantages to Mogo Finance’s personal loan that you should know:

  • Some reviewers on the Better Business Bureau (BBB) website say that they have had some unfortunate experiences with Mogo’s staff.
  • If you default on any payments, you’ll need to pay twice for non-sufficient funds — one to your lender and one to your bank for penalties. These range from $20 to $50 with interest.
  • The Mogo website doesn’t contain in-depth information on the additional fees you may have to pay when applying for a loan with them. If you do plan on getting a personal loan, consider giving them a call so you can ask about these additional fees.

Mogo Finance: The Bottom Line

Mogo Finance offers a lot of financial options to its borrowers. A Mogo personal loan may be just what you need to cover for your medical costs, pending bills, mortgage, or anything you might need a personal loan for. Remember to keep the points above in mind before you make a decision. Also, we urge you to call their customer service hotline should you have any questions and clarifications. Good luck!