Fairstone Loans Review
If you’ve encountered a financial setback, you might be wondering if Fairstone Loans can help you overcome your difficulties. To that end, you can choose between many types of loans the company offers. But are any of them the right choice for you?
In this article, we’ll give you a list of types of loans Fairstone provides, along with their repayment terms. Plus, we’ll recommend in which situations Fairstone is a viable solution and when to apply for a loan elsewhere.
What Loans Can You Take Out from Fairstone Loans?
There are four types of loans you can apply for at Fairstone Loans:
- Secured loans – If you want to obtain a secured loan, you’ll need to include an asset (e.g., your home or car) to serve as loan protection. As a result, this type of loan can be risky if you don’t make your payments. And even though this entails a relatively low interest rate, you can find even lower rates with secured loans from other credit providers. However, if you have a low credit score, you may have to settle with a slightly higher interest rate.
- Unsecured loans – As the name suggests, there are no forms of security when taking out an unsecured loan. Instead, the company will analyze many details, such as your income and credit score, to check if you’re eligible for an unsecured loan.
- Mortgage refinancing loans – Customers usually apply for this loan to finance their home improvements. The company will go through several pieces of information, such as your credit history and your house’s value, to figure out if you’re eligible.
- Second Mortgage Loans – You can also use your second mortgage loan to pay for home improvement expenses or achieve other financial goals.
Here are the conditions of each type of Fairstone loans:
|UNSECURED LOANS||SECURED LOANS|
|TERM||6 – 60 months||36 – 120 months|
|FEES||None||Depends on the province|
|PROCESSING TIME||Under 24 hours||More than two business days|
|GUARANTEE||14 days||More than two days|
|MORTGAGE REFINANCING||SECOND MORTGAGE|
|LOAN AMOUNT||A maximum of $400,000||A maximum of $125,000|
|MAX LOAN-TO-VALUE (LTV)||90%||80%|
|RATES||Upwards of 12.99%||Upwards of %15.85|
|AMORTIZATION PERIOD||A maximum of 25 years||A maximum of 20 years|
|TERM||1 – 5 years||1 – 5 years|
|PROCESSING TIME||More than two days||More than two days|
Furthermore, there are several subtypes of personal loans you can get at Fairstone:
- Emergency loans
- Car loans
- Car repair loans
- Wedding loans
- Online Canadian loans
- Vacation and travel loans
What Are the Main Advantages of Fairstone Loans?
Here’s a brief overview of how you can benefit from taking out a loan from Fairstone:
- You have five years to pay back your personal loan, and you can do it under various repayment schedules.
- Online loan applications are available.
- The application process is simple and easy.
- You don’t have to go through hard credit checks to see the loan size and interest rate Fairstone offers, thus preserving your current credit score.
- There are no fees or penalties for repaying your unsecured loan early.
- Lower interest rates are accessible via securing your loans with an asset.
What Are the Disadvantages of Getting a Fairstone Loan?
Fairstone also has a number of cons you should consider before getting one of their loans:
- The application process doesn’t show your interest rate.
- Once you’ve calculated your interest rate, you’ll see that it’s relatively high.
- Customer support may not be helpful at times.
- The Better Business Bureau has given the company a poor rating.
How Do You Apply for a Fairstone Loan?
You can apply for your Fairstone loan online or in-person. If you opt for the latter, you can visit either one of their 240+ branches, where the tellers will guide you through the application process.
On the other hand, the online application will take you approximately ten minutes. Here’s what it consists of:
- Your personal details (name, birthdate, address, housing expenses, income, and contact information).
- Stating the loan amount using the sliding scale on their website.
- Specifying the loan’s purpose.
- After reviewing and submitting your information, Fairstone will need to analyze your credit score. Luckily, this won’t harm your credit score because the company will only perform soft checking.
- Processing your application will take a couple of minutes. Once it’s complete, you’ll move on to the company’s approval page, where you’ll have an overview of your loan conditions and instructions on your next step for taking out the loan.
The downside to their online application is that it doesn’t show you your interest rate during the approval. However, you can find a large number of online calculators. They allow you to enter your loan amount, repayment period, and the size of your monthly payments to figure out your interest rate.
Can You Consolidate Your Debt with Fairstone?
Fairstone has several options for debt consolidation. The company singles out its secured loans since they can provide you with more money (up to $15,000 more than unsecured loans), making it ideal for consolidating loan balances or large credit card debt. Also, secured loans feature lower interest rates and smaller monthly payments, thus reducing the interest you’ll need to pay under your debt overall.
On the other hand, unsecured loans are a good option if you don’t own a house and you want to repay your loan at any moment. The company can lend you up to $20,000, and while the monthly payments are slightly larger, unsecured loans may be an affordable solution for your budget.
To access debt consolidation plans at Fairstone and see which option fits you best, here’s what you should do:
- Put all your debt on a piece of paper – Include any loans, bills, and other forms of debt you need to repay and calculate the total amount. This way, you’ll know the size of the loan you’ll need to take out to consolidate it.
- Look for an online quote – Faistone has an online quote that helps you determine how big a loan you’re eligible for and how large your monthly payments would be. This is entirely safe since getting an online quote comes with no obligations and doesn’t impact your credit.
- Get in touch with your lending specialist – Upon getting your online quote, your lending specialist will contact you over the phone. At this point, you’ll need to answer a couple of questions about repaying your debt, allowing them to recommend you an ideal loan option.
- Decide on your payment option – Choose monthly, semi-monthly, or bi-weekly payment plans to repay your debt.
- Complete your application – After specifying all the terms of your loan, the funds may be available to you on the same day. This allows you to consolidate your previous debt and start repaying the loan you took out from Fairstone.
Are There Better Alternatives to Fairstone?
Again, Fairstone is an excellent option if your credit score isn’t high enough to qualify for lower interest rates. In these cases, the company offers lower interest rates than Mogo, whose interest rates reach 47.72%, compared to Fairstone’s maximum interest rate that stands at 39.99%.
However, you might be better off with a different loan provider if your credit score is slightly higher. For instance, Borowell offers extremely favorable personal loan conditions. They have a variety of loans you can choose from, and their interest rates are lower than Fairstone’s. The turnaround time is also quick. The only impediment to qualifying for their loans is that you must have a high credit score.
When Should You Take out a Loan Elsewhere?
Since Fairstone should be your last resort due to their high-interest rates, there are many cases where you should avoid getting one of their loans. For instance, if you can break into your savings, sell some of your assets, or settle your debt using credit cards, there’s no reason to reach out to Fairstone. Moreover, if you have a family member willing to grant you a loan or your high credit score allows you to take out loans at lower interest rates, try those alternatives instead of Fairstone.
Apply or Keep Looking?
To sum up, if your current credit score allows you, Fairstone isn’t the right lender for you. However, your financial situation doesn’t always allow you that choice. In that case, get an online quote from Faristone, see which loan type they suggest, and you’ll get the necessary funds you’ll be able to pay back under the payment plan that suits you.