Fairstone is an online lending company that offers personal loans to help Canadians meet their urgent financial needs. They help borrowers meet their urgent financial needs while allowing them to pay off over a period of time.
One of the most important factors to consider when taking out a personal loan is the interest rate. Hence, this article is designed to keep you informed on Fairstone’s loan interest rates to enable you to make an informed decision before taking out a loan from Fairstone.
What Is Fairstone?
Fairstone is a leading Canadian lending platform with over 240 outlets across the country. The company was founded in 1923, and since its inception, it has become one of Canada’s largest non-bank lenders. Fairstone not only offers personal loans but also offers debt consolidation loans and home equity loans.
In the recent past, Fairstone has been gaining popularity due to their flexibility in their loan terms. The Fairstone loan amount ranges from $500 to $50,000, with repayment terms ranging from 6 to 120 months. This means that borrowers can choose a loan that fits their budget and financial needs. However, the credit score, loan amount and loan term determine the Fairstone loan interest rate since they are not fixed.
What Are Fairstone’s Interest Rates?
The Fairstone interest rate is not fixed; it varies depending on the borrower’s creditworthiness, credit score and the loan amount. Interestingly, Fairstone offers both secured and unsecured loans, which means that a borrower can get collateral-free loans. However, the interest rate for unsecured loans (collateral-free loans) will be higher since there is no collateral needed to secure the loan.
According to Fairstone’s website, the interest rates for their personal loans range from 19.99% to 39.99% APR. However, there are different interest rates for Fairstone secured and unsecured loans. For secured loans, the interest rate ranges from 19.99% to 29.99% APR, but for unsecured loans, the interest rate ranges from 26.99% to 39.99% APR. From the interest rate, we can see that the interest rate for unsecured loans is higher than that of secured loans. Meanwhile, the credit score, income, creditworthiness and other factors determine the interest rate since it is not fixed.
Apart from the interest rate, it is also important to note that Fairstone charges an origination fee on their loans. The origination fee is a one-time fee that is added to the loan amount and it varies based on the loan size and the repayment plan chosen. The origination fee for a Fairstone loan ranges from 0% to 4.99% of the loan amount.
How to Get the Best Fairstone Interest Rate?
If you’re interested in getting a loan from Fairstone, there are a few things you can do to increase your chances of getting the best interest rate. Here are some of the tips:
1. Improve Your Credit Score
Your credit score is one of the most important factors that lenders consider when determining your interest rate. If you have a low credit score, you may be offered a higher interest rate. Hence, it is important to take appropriate steps to improve your credit score before applying for a loan.
2. Choose A Secured Loan
A secured loan is a loan that can be obtained with collateral, such as a car or a house. Secured loans generally have lower interest rates than unsecured loans since the lender has some security if the borrower defaults on the loan. From the above section, we can see that the interest rate for an unsecured loan is greater than that of a secured loan.
3. Choose A Shorter Loan Term
As it is with other lending platforms, the longer your loan term, the more interest it will accumulate. The same thing is applicable to Fairstone Loan. Hence, it is best to choose a shorter loan term if you can afford higher monthly payments to reduce the interest rate.
Conclusion
Fairstone is one of the leading lending platforms that offers flexible loan terms with reasonable interest rates. However, the borrower’s credit score, income, and other factors determine the Fairstone loan interest rate since it is variable. To get the best Fairstone interest rate, you should take steps to improve your credit score, choose a secured loan, and choose a shorter loan term. The choice is yours to make.