Lending Mate Review 2021: SCAM, Safe or Legit?

The concept of loans used to be based on a system of trust between a bank and a lender, and a guarantee that you would be responsible for the financial investment. Over the decades, credit scores have determined whether you are able to borrow money from a bank, and in many cases, millions of people get rejected each year due to a low or bad credit score or having to declare bankruptcy.

LendingMate is a credit service provider catered to the Canadian public who are struggling to source financial aid through the means of traditional banks. LendingMate will ask you to name a guarantor that will be responsible for paying back the loan you take should you be unable to yourself. Once a guarantor has been named, LendingMate will go through the application process to check all the personal and financial details provided.

How Do I Apply with LendingMate?

LendingMate allows Canadian citizens to apply for a loan without the use of a computer deeming their eligibility, and all that is required is that you have a friend or family member that can validate that you can pay back the loan and the interest rates that will be accrued. 

The process itself is very easy to follow and a specific repayment plan can be set up according to your individual financial needs. You will need to complete an online form defining how much you are loaning and what your repayment options are. Once your application is in process, LendingMate will call both you and your guarantor and ask the following types of questions:

  • If you share any finances with the applicant
  • If you are above the age of 19 but younger than 75
  • Confirm if you are a Canadian citizen

To be Eligible for a LendingMate Guarantor Loan:

  • All applicants must be a Canadian citizen between 19 and 75 years of age
  • You must be able to prove that you have sufficient income to repay on your monthly instalments
  • You must show that you have no current discrepancies on your credit score 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 for annual earnings
  • Show that there are no current discrepancies on the credit score with the bureau
  • Have a clean credit history and current score

The only instances where LendingMate will not approve an application is if you already have an active loan with them or another credit provider or if you have been declared bankrupt. LendingMate does not ask for your employment details, and you don’t need to be employed to be approved. LendingMate is completely free from certain cost implications, such as they won’t charge you for settling your account early. They will also not penalize you if your payment is late.

Benefits of Taking Out a Loan with LendingMate

LendingMate is an easy-to-use simple financial lender that offers basic guarantor loans. The system promises to pay out all loans within 24 hours of a successful application, as long as your guarantor has signed the agreement and is happy to put their name against your loan and all your identification documents are in order. The following are some of the other benefits of LendingMate:

  • LendingMate has no loan brokerage fees
  • The application process has an easy-to-use calculator that will let you know how much you can afford to repay
  • Any applicant with a bad credit history or score is still eligible, as long as there are no current discrepancies or open judgements
  • Interest is only applied during the months in which the loan is active. If you choose to pay early, you will not be charged the interest term amount
  •  If the application is successful, you will receive your money within 24 hours, no matter what the amount is
  • Utilising a guarantor is helpful if you are unable to pay your installments
  •  LendingMate’s loans are not secured so no financial or physical assets can be used as collateral

LendingMate is big on building personal relationships and trust with their borrowers, which is why both parties will be contacted via a call regarding the application. LendingMate wants to ensure that both you and the guarantor are protected, without needing a computer algorithm to decide if you can lend money from the bank or not.

LendingMate FAQs

With any financial transaction like a loan, you will want to take the necessary precautions and do proper research before you sign any documents or submit identification information. 

What is a Guarantor Loan?

Many people who would like to lend money to a friend or family member are discouraged because this means managing the loan and repayments in a personal capacity. LendingMate takes away this problem by allowing you to help those in need without putting additional strain on your relationships. The downside to being a guarantor is when the borrower misses their payments. LendingMate will contact the original borrower to follow up on late or outstanding payments; however, if they cannot get a response, you as the guarantor will be liable to settle that payment. 

As a guarantor, you won’t receive any negative credit score unless court action is required for non-payment towards the loan. The purpose of a guarantor loan is to strengthen your credit by co-signing for a loan with someone who can stand in and pay the instalments if you are no longer able to.

Who Can Benefit from a LendingMate Guarantor Loan?

Anyone who has an agreement with an eligible guarantor can apply with LendingMate. The easy application process is the next best place if you have been unable to get a loan with other banks or have a low or bad credit score rating. 

LendingMate offers no hidden fees and there is no penalty charge for late payments. Additionally, if you can pay your loan early, you will not have to fork out for an early settlement fee that is normally charged by traditional financial credit service providers. A major reason for choosing LendingMate is that no prior collateral is required for your application. This means that neither you nor the guarantor has to name a house, car, or another asset as collateral, should you not be able to pay the loan back. 

This provider allows for an easy approval system that doesn’t take weeks’ worth of paperwork to fill out and as long as your application has the correct documents in place and signed, the money is paid to your account at a much faster rate than most banks.

What Are the Pros and Cons of Using LendingMate?

There are only some downsides to applying with LendingMate. Specifically, the service is only available to Canadians in Quebec, Ontario, and British Columbia. Depending on the province you reside, LendingMate may charge different interest rates. The interest rate is also much higher than other banks or financial lending institutions with 43% interest per annum. 

Due to the many benefits of LendingMate, it makes it the most viable and easy to access loan system in Canada; however, be careful before taking on a loan. If you can anticipate that there will be no missed installments or defaults on the account, then LendingMate is perfect. The trick is to make sure that if you do default on a payment, it does not become a regular occurrence as this could lead to legal actions against you and your guarantor in very extreme cases.

LendingMate prides itself on offering easy applications, fast turn-around times, and less constrained requirements. Visit LendingMate to find out what opportunities are available to you.

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