MogoMoney refers to personal loans and lines of credit products offered by Mogo Finance Technology Inc. and its partner lending financial institutions.
These credit products may come in handy if you need quick access to cash and haven’t already got a line of credit or loan lined up with your bank.
It may also be cheaper than carrying a balance on your credit card if your credit score qualifies you for a competitive loan rate.
This Mogo review covers its pros and cons, eligibility criteria, and alternative loan platforms.
What is MogoMoney?
You can apply for up to a $35,000 loan through Mogo and get pre-approved in as little as 3 minutes.
A Mogo loan has the following features:
- Interest rates: 9.9% to 47.42%
- Loan amount: $500 to $35,000
- Loan term: 6 months to 60 months
- Security deposit: None
MogoMoney personal loans are unsecured and the interest rate is fixed. There is also a MogoMini Line of Credit product that is open-ended. You pay interest and have the flexibility to decide when you want to pay back the principal.
These credit products are available to residents of BC, AB, ON, NB, MB, NS, PE, and NL.
Some loans powered through Mogo are reported to Equifax and TransUnion, and if you are making payments on time, this can help improve your credit score.
How to Apply for a Mogo Loan
To apply for a personal loan, you must first create a free account.
Answer a few questions and in about 3 minutes you will know whether you have a pre-approval.
To complete your application, you will need to provide further information about your financial situation and income sources.
Basic eligibility requirements for a loan include:
- A minimum annual net income of $13,000
- Steady employment for at least 30 days
- Copy of a government issued ID
- Bank account verification
- You must also be the age of the majority in your province.
After your loan is approved, it is paid out using direct bank deposit or sent via Interac e-Transfer. Note that some loans are automatically approved and do not require additional documentation.
Mogo works with a number of lending companies to offer personal loans, including Lendful and easyfinancial (aka MogoLiquid).
Benefits of a Mogo Personal Loan
Fast Approvals: Pre-approvals take a few minutes, and you can have funds deposited in your account within days. There’s no impact on your credit score (soft check) and you are under no obligation to take the loan.
Free Credit Score: Mogo provides a free Equifax credit score that is updated on monthly basis.
100-day Test Drive: you can try out some MogoMoney loans for up to 100 days. If you are not satisfied with it, simply pay back the principal, and the interest and fees already incurred are waived.
Reputable Company: Mogo is a publicly traded company with listings on the Toronto Stock Exchange and NASDAQ. The platform uses bank-level security to protect your information.
Freebies: Whether you have a MogoMoney personal loan or not, you can get the following services for free:
- Free credit score monitoring
- Free identify fraud protection
- $5 sign-up bonus to try Bitcoin trading
- Free prepaid card (MogoCard)
Flexible Loan: You can pay off the loan at any time as there is no pre-payment penalty.
Downsides of a Mogo Personal Loan
The interest rates range from as low as 9.9% to as high as 47.42%. If you have a decent credit score, you can probably get a personal loan at a more competitive rate with your bank or credit union.
MogoMoney loans are not available in Saskatchewan and Quebec.
The 100-day test drive offer does not apply to MogoLiquid loans.
Mogo Loans vs. LoanConnect
LoanConnect is a loan search engine you can use to compare loan rates from various lenders in Canada.
The platform can be used to find various types of loans including personal loans, debt consolidation loans, and bad credit loans.
Features of loans available through LoanConnect are:
- Loan amount: $500 – $50,000
- Interest rates: 9.9% – 46.96%
- Loan term: 6 months to 60 months
- Security deposit: None; loans are unsecured
Similar to MogoMoney, loan applications on LoanConnect are completed online and take only a few minutes.
For more information, read my LoanConnect review.
Mogo is a legitimate business that has been around since 2003. As per their website, the company has over 1.6 million members. While it is not accredited by the Better Business Bureau, it holds an A+ rating on the platform. And as for the safety of your information, Mogo uses TLS encryption to protect your data.
It reports your payment activity to Equifax Canada. The free credit score you get is also based on Equifax’s proprietary model (ERS 2.0).
MogoMoney is not a payday loan, however, the interest rates offered can be as high as 47.42%, depending on your credit score and financial history.
Related: Refresh Financial Review.