Lending was once built on a simple idea: a bank trusted you, and you guaranteed you would repay. Over the decades, credit scores took over that role, and every year millions of people are turned away because a low score, a thin credit file, or a past bankruptcy makes them look risky on paper. For those borrowers, traditional banks can feel like a closed door.
LendingMate is a credit provider aimed at Canadians who struggle to secure financing through conventional banks. Instead of relying on a credit score alone, LendingMate asks you to name a guarantor who agrees to repay the loan if you cannot. Once a guarantor is in place, LendingMate reviews the personal and financial details both of you provide.
How Do I Apply With LendingMate?
LendingMate lets Canadian residents apply for a loan without an algorithm deciding their eligibility. All you really need is a friend or family member willing to vouch that you can repay the loan and its interest.
The process itself is straightforward, and you can set up a repayment plan that suits your circumstances. You complete an online form specifying how much you want to borrow and how you plan to repay it. Once your application is under way, LendingMate calls both you and your guarantor and asks questions such as:
- Whether you share any finances with the applicant.
- Whether you are between 19 and 75 years of age.
- Whether you are a Canadian citizen.
Eligibility for a LendingMate Guarantor Loan
- All applicants must be Canadian citizens between 19 and 75 years of age.
- You must be able to prove you have sufficient income to cover your monthly instalments.
- You must show that there are no current discrepancies on your credit file with the bureau.
To Become a Guarantor, the Person Must:
- Be a Canadian citizen between 19 and 75 years of age.
- Provide bank statements or payslips showing annual earnings.
- Show that there are no current discrepancies on their credit file with the bureau.
- Have a clean credit history and current score.
LendingMate generally declines an application only if you already have an active loan with them or another provider, or if you have been declared bankrupt. LendingMate does not ask for employment details, and you do not need to be employed to be approved. It is also free of several common charges: there is no penalty for settling your account early, and no penalty for a late payment.
Benefits of Taking Out a Loan With LendingMate
LendingMate is an easy-to-use lender offering straightforward guarantor loans. It aims to release funds within 24 hours of a successful application, provided your guarantor has signed the agreement and your identification documents are in order. Other benefits include:
- No loan brokerage fees.
- An easy-to-use calculator during the application that shows how much you can afford to repay.
- Eligibility even with a poor credit history, as long as there are no current discrepancies or open judgements.
- Interest charged only for the months the loan is active, so paying early means you avoid the remaining interest.
- Funds delivered within 24 hours of approval, regardless of the amount.
- A guarantor to fall back on if you are unable to make an instalment.
- Unsecured loans, meaning no financial or physical assets are used as collateral.
LendingMate places a lot of emphasis on building personal relationships and trust with its borrowers, which is why both parties are contacted by phone during the application. The goal is to protect both you and your guarantor without leaving the decision to a computer algorithm.
Is LendingMate Safe or Legit?
LendingMate is a legitimate guarantor-loan provider rather than a scam, but a guarantor loan is still a serious financial commitment for both the borrower and the person backing them. As with any loan, take the necessary precautions and do your own research before signing any documents or submitting identification. Make sure both you and your guarantor fully understand the repayment terms and what happens if a payment is missed.
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