LendDirect: A comprehensive personal loan review

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LendDirect is one of the most unique lenders in Canada. While they are not available in every province, the type of personal loan product they offer makes them a very attractive option for many Canadians who are looking for more flexibility in their finances. In this review, we’ll tackle how LendDirect’s service works, as well as whether or not they’re the right lender for you.

LendDirect Overview

LendDirect only offers personal loans. They do not offer any other services. Their approach to personal loans is a little bit different from other lenders, too.

 

LendDirect offers lines of credit. Applying for and using a line of credit is similar to how you would apply for and use a credit card. As you pay off your debt to LendDirect, you will start to free up funds on your line of credit. You can then tap into it any time you need extra cash. This means if you want to borrow more from the company and your line of credit hasn’t been maxed out, then you do not need to reapply. We’ll talk a little bit more about how this works in a short while.

 

LendDirect has several physical branches throughout Canada, but most people that transact with this company will likely interact only with their online system.

LendDirect Review

As we’ve said before, LendDirect is all about lines of credit. Let’s dive deeper into their service.

Who can apply for LendDirect loans?

You can only apply for LendDirect personal loans if you live in one of these areas:

 

  • Alberta
  • British Columbia
  • Ontario
  • Saskatchewan

 

You must also be earning at least $1,500 per month, and your income source must be stable. While LendDirect does not say it outright, it is likely that you will need to be in employment for at least 30 days before you can apply for their lines of credit.

 

LendDirect supposedly allows those with a poor credit history to apply for their loans. However, many people with poor credit scores have applied to LendDirect and reported to have been denied. We believe this company is more likely to accept those with at least a semi-decent credit.

Interest Rates

The minimum interest rate for their loans is 19.99%, but this can go up to around 48% for those with below-average credit. This means that it can be a rather expensive way to borrow, particularly if you’ll end up using your entire line of credit frequently. To get a better idea of the best interest rates in Canada, you may check out Rate Genie.

How much you can borrow

You can set up a line of credit up to $15,000 with LendDirect. However, most people are approved for a line somewhere in the region of $5,000 to $10,000.

Repayment Terms

There isn’t a strict schedule that borrowers must follow when it comes to paying their loans back. You just need to make sure that you meet the minimum repayments each month. It works pretty much like a credit card, although those minimum repayments will often be a bit higher than what a traditional credit card will require.

How LendDirect Personal Loans Work

As we have said several times before, this is a line of credit and not a personal loan in the traditional sense.

 

Whenever you wish to borrow from your line of credit, you will sign into your account and apply for a cash advance. This money will then be sent to your money within fifteen minutes. You can do this an unlimited number of times provided that you do not go over your credit limit.

Applying for a LendDirect Line of Credit

The process for this is pretty quick. The application can be carried out online, or you can head to one of their branches.

 

You will start by saying how much you want to borrow. You will also be asked more info regarding your monthly income, province of residence, and a rough estimate of your credit score. You will then be given an idea of whether LendDirect can work with you or not. This is not a formal offer, but more of an indication of whether LendDirect is the right lender for you. This is helpful if you want to explore your options without having to have a formal credit check carried out.

 

If you do see an offer you like, you can continue with the application process. You will be asked for proof of your income, residency, and bank account. Extra documents may be required in special situations.

 

If you are approved for a line of credit (which takes about 1-2 days), you can start to make cash advances from your account. Any cash advance will take about fifteen minutes and is carried out via Interac. This means that LendDirect is an incredibly fast lender, assuming you have managed to get through the initial application process.

Pros

Taking out a LendDirect loan is a great alternative to a credit card. Some people may need regular access to cash, and it is nice to have this little loan in place just in case. It is great if you want to feel a bit more prepared for emergencies and other unplanned expenses.

 

The application process is incredibly smooth and the fact that you can start getting cash within fifteen minutes of your approval is fantastic. It’s hard to find comparably-quick lenders out there, particularly with interest rates as competitive as this.

 

We also love the fact that even if you pay off your loan, you will still have access to your line of credit for up to a year. This can be highly beneficial if you hate having to constantly apply for loans.

Cons

As many people have noted in LendDirect reviews, this can be a tough company to deal with if you have no time to visit a physical branch. It’s possible to apply, get approved, and “withdraw” cash online, but some people have reported difficulties with their online customer support. However, most of their issues seem to have been solved after going to one of their branches.

 

Of course, some people may see the limited number of provinces that LendDirect operates in as a little bit of a downside, but it does cover most of the Canadian population, so it shouldn’t be much of an issue.

Conclusion

Taking out a LendDirect loan is perfect for those with good to great credit scores. We do enjoy the whole line of credit approach to their loans. However, if you would struggle to manage this type of loan (i.e. you are known for letting your finances get out of control), then this could end up as a very expensive way of borrowing money.

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