For those looking for an unsecured loan, MogoMoney is a lender that is offering a simplified and fast process to its customers. Unlike many traditional lenders, MogoMoney doesn’t have one set interest rate; rather, the customer is given a rate that is based on their own credit score. This means the interest rate can vary from 9.9% to 47.42%. While that interest rate obviously can be extremely high, the idea is that those with bad or poor credit can at least still have the option of being approved for a loan.
Mogo Financial is the official lender behind the MogoMoney service. As touted, this process is meant to be quick and easy so it’s normal to get pre-approval for a loan in under five minutes. The lender also encourages people to go ahead and make an account, as this unlocks exclusive features. Features include protection from ID fraud and it will give you the ability to check your credit score and actually track and monitor it. The idea is that you can be more informed of your financial standing.
MogoMoney Standout Features
MogoMoney boasts a number of standout features meant to apply to a wide array of potential customers. Top features include:
- The ability for quick and easy pre-approval Element
- The loans are unsecured with a minimum value of $300 and a maximum value of $35,000
- The terms themselves are flexible
- Available in many provinces – YT, SK, PE, ON, NU, NT, NS, NL, NB, MB, BC, and AB
- You’ll have access to your credit score
- You can get your loan on the day you are approved
- You don’t have to have a high credit score to be approved
- You must be a Canadian resident and have a valid credit rating/profile
- There is an unsecured minimum term of six months and a maximum term of 60 months
- It has an overall product rating of 2.8/5 stars
MogoMoney Product Rating
In terms of a product rating, MogoMoney scores 2.8 out of 5 stars, which leaves some room for improvement. A big part of why its score is on the lower side goes back to its interest rate. The starting rate of 9.9% seems completely reasonable for a quick loan, but the fact it can go up to 47.42% is extremely scary. The high interest rate is meant for those with poor credit, so knowing that you are potentially getting into a loan with that much interest doesn’t make much sense.
On the flip side, the rating also reflects the fact that it is an easy-to-use service that doesn’t turn people away despite their credit rating. Pre-approvals are quick and easy to get, which means access to your funds isn’t weeks away – it can be same day or next day. And then the other big thing it has going for it is the fact you can choose to pay it off in full any time, thereby avoiding future interest, and there won’t be a penalty fee.
How the Rating is Determined
The rating is determined using a very basic process in order to keep it fair and unbiased. For each of the features MogoMoney offers the product is rewarded. It is also pitted against other lenders to see how it stacks up in terms of those features. From there a simple math equation is used in order to translate the number into a rating out of five stars.
MogoMoney Pros
For those interested in the MogoMoney pros and what can potentially make this a great option for you, there are quite a few worth taking note of.
- The fact that you get flexible terms, and a variety of terms is unique in that not every loan out there offers this same option. Choose from terms that range from 6 to 60 months, whatever works for you. You can also pay off your loan any time without any penalty, again a unique feature.
- Despite the fact the interest rate can be high, it can also be on the lower end, depending on your personal credit score.
- MogoMoney won’t turn you away just because you don’t have a perfect credit score.
- You can get pre-approval in under five minutes, as the process is extremely simple. This is ideal for those who need access to cash in a hurry, such as an emergency or an unexpected expense.
- Once you set up your account you’ll be able to go about the process entirely online. There is a companion app that makes it possible for you to track all your payments and see how much you have owing on the principal.
- The amount you can borrow ranges from $300-$35,000.
- MogoMoney features a 100-day trial period, which gives you a chance to really get a feel for it. If you aren’t satisfied with it during that 100 day period, all fees and interest will be refunded and you can pay off your principal owing. This 100-day trial period isn’t valid on 3rd party lender loans, however.
MogoMoney – What to Be Aware Of
Just like with anything, MogoMoney has a list of things that you need to be aware of and watch for. This will help you to make an informed decision where money is concerned. A few red flags to at least be aware of include:
- Interest is easily the most important thing to be aware of. While it starts out reasonable, the fact it can climb to 47.42% is very alarming, as that translates to a lot of money you may end up paying back. This is obviously much higher than the traditional interest rate on loans.
- MogoMoney advertises a wide range of interest rates or APRs, so one naturally thinks they won’t be paying on the higher end, but more often than not customers have complained they are given the higher rate even with a very good and solid credit rating.
- Many customers feel there is a real lack of customer support. This can be a problem if you run into any issues or have any specific questions you want an answer to. Customers have commented that they feel as though they aren’t being heard and that there is no-one to help them. This can lead to a very frustrating experience overall. You can end up feeling like a number rather than an individual customer.
- The product and company tend to have a rather negative reputation. This can be attributed to a few different factors, much of it being the high interest rate. The company also isn’t exactly forthcoming when it comes to the fine print details, and you really need to take the lead on this and ensure you know what you’re signing up for. That 100-day trial is an excellent offer, but the fact it isn’t valid on 3rd party lenders can be a real issue considering EasyFinancial is often the lender used – a 3rd party.
- MogoMoney’s marketing campaigns aren’t always on the up-and-up with some calling their tactics “questionable”.
MogoMoney FAQs
Here are a few basic FAQs to be aware of if you’re considering a loan with MogoMoney. This quick guide can help you to better understand what MogoMoney is, and if it’s right for you.