LoanConnect is a Canadian online platform used for installment loans and unsecured personal loans. With their innovative search engine, you can easily find a loan that matches your needs at a reasonable cost.
A lot of Canadians are struggling and living paycheck to paycheck, often finding themselves in need of fast cash for an unexpected expense or emergency. Usually, whenever you need a loan, the first thing that comes to your mind is to go to the bank but due to poor credit history, you won’t be granted the loan.
This is where the need to find lenders willing to grant a loan to borrowers with a poor credit score arises. And that’s where LoanConnect comes in.
LoanConnect is a specialized search engine that can help you to find the right lender that will be willing to lend you either part or full of the amount you are seeking no matter your credit score.
What is LoanConnect?
LoanConnect is a search engine for personal loans and installment loans in Canada. It’s a fairway where you can find lenders who are willing to provide personal and installment loans amounting up to $50,000 for durations ranging from six months to five years.
LoanConnect was launched in 2016 and is one of the best locations for sourcing loans at competitive rates regardless of your credit rating in Canada. They are currently located in Toronto, however, you can access their websites anywhere in Canada so as to apply for a loan.
LoanConnect caters to its borrowers all over the country. It’s very important to understand that the website itself does not provide loans to people, instead it connects you to the lenders.
Despite acting as an intermediary, you don’t get charged at all for the service they render. And the services are better for people with good credit, and a bit restricted for people with poor credit scores.
What types of loans are available?
The following are the various types of loans that you can find on the LoanConnect Platform. Which include:
Debt Consolidation loans
Home renovation loans
The details of the type of loan will depend on the lender you end up choosing, but LoanConnect will provide all the necessary information for you so that you can make an informed choice.
LoanConnect Products and Services
LoanConnect doesn’t offer a collection of financial products. It only offers loans.
The loans are categorized under different loan requirements, which we can be referred to as LoanConnect Products.
Personal Loans or Cash Loans
Personal loans or cash loans can be searched for diverse reasons.
You may want to renovate your house, buy a car, pay a vet’s bill, pay your school fees, or even if you want to pay off your credit bill.
If you have a good credit history, you can get personal loans easier and faster on very good interest rates.
LoanConnect can also help you find guaranteed approval loans for poor credit history in Canada.
If you are already in debt, and your credit history is hindering you from finding a good debt consolidation, LoanConnect may be of help to you.
You may not get a lot of choices, especially if the loan you are interested in exceeds $15,000.
Bad Credit Loans
Looking for bad credit loans in Canada might be very hard especially when you are making a Google search.
You can simply go to LoanConnect.ca and drop your information, they might help you find the right lenders. You should also have it at the back of your mind that whatever their interest rates might be, it might be better than the insanely high payday loan rates that can reach up to 442% per year.
Anyways, if you are opting for a debt consolidation service or a bad credit loan, chances are that you will get the same lenders and the same interest rates.
So, you may want to go through all the options. Even a 5% or more difference in interest rates can mean a lot especially when you are in a bad financial situation.
How to apply for a loan with LoanConnect
You can use LoanConnect Online and it’s very easy and convenient. When you go to their website you will see a red ‘apply now’ button in the top right corner.
When you click on this, you will be re-directed to a new page where you will be required to fill out three different steps. Which include:
Step 1: Contact information
The loan you are looking for (The highest loan you can receive is $50,000)
The type of loan you want (there is a menu to select from)
Personal information like name, address, phone number.
Step 2: Financial Situation
Credit Score (if you don’t have any idea of what your credit score might be, there is a link to a tool that will help you estimate)
Step 3: Confirmations
Accept Loan Credit terms and conditions.
Decide if you want to receive information about other services and offers.
Once you click “submit”, LoanConnect will compare your information with their record of lenders.
After some time, you will have a list of loan offers that are available for you.
The available offers are in a chart form so you can compare the maximum term (in months), APR, whether or not you are pre-qualified, and the monthly payments.
When you find the option that you like, you can click on a link that will redirect you to the lender’s website where you will be asked for a few details and then finalize your loan application.
Once the loan is approved, your money will be deposited in your bank account in 12 hours depending on the lender.
The payment process will depend on the lender you choose, but normally you’ll have weekly or monthly payments for the agreed-upon rate that is taken automatically from your bank account.
Am I Eligible for a LoanConnect Loan?
For you to be eligible for a LoanConnect loan, you must be a Canadian citizen.
As said before, you can still apply for a loan even if you have bad credit or an existing debt.
The only condition is that the total debt that you owe must not be more than 60% of your income. So if you meet all these criteria, you can easily apply for a loan.
Is LoanConnect Legit and Safe to Use?
From a financial perspective, LoanConnect is very safe since its neither providing the loan itself nor taking a cut of loan or repayment.
The website has been in use since 2016, and it got accredited with BBB (Better Business Bureau) in 2018. It also has an A+ rating, which is calculated based on customer reviews. And it is working with legit lenders, which makes it more credible.
So yes, LoanConnect is legit, safe and secure.
How do they make money?
Since LoanConnect is a form of business, so how do they make money?
They make their money from lenders themselves, not from you as a user on the platform. You pay them a flat fee when you refer new borrowers through their online platform.
What is Considered “Bad Credit” in Canada?
The major way lenders assess the risk they face when they lend you money is through your three-digit score. In Canada, a credit score is a number ranging from 300 to 900.
Similarly, a score below 560 may be considered as bad credit; 560 to 659 is fair; 660 to 724 is good; 724 to 759 is very good and above 760 is excellent.
When you have a bad or poor credit score, you may likely pay a higher interest rate when you apply for a loan if at all you are approved.
Alternatives to LoanConnect
The APR for Loans Canada ranges from 2.99% to 46.96% while LoanConnect ranges from 10% to 46.95%( your APR is based on your credit score).
The loan amount for Loans Canada ranges from $500 to $300,000 while LoanConnect ranges from $500 to $50,000.
The loan Term for Loans Canada ranges from 3 to 60 months while LoanConnect ranges from 6 to 60 months.
Loans Canada does not require any minimum credit score so as LoanConnect to.
In general, with LoanConnect you have the best chance at finding a loan for a low rate.
However, just it’s just a chance it’s not certain that you will find one. In this case, it might be worth trying so you can compare its result to that of other competitors.
If you are looking for an unsecured personal loan, then Loan Connect is a good platform for you. They make it very easy and convenient for you, meaning you can do your research from the comfort of your house.
Also, there are no restrictions on credit limits and all types of loans are available.
Furthermore, you need to remember that LoanConnect is just the search platform, not the lender. So you need to do your research well and look into the lenders, their rates, regulations, reputation and security before you make a choice.
Thanks for reading, please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.