Frequently Asked Questions — Canada

A personal loan is a fixed amount of money you borrow and repay in regular installments over an agreed term, usually with interest. Unlike a mortgage or auto loan, it isn't tied to a specific purchase, so you can use the funds for almost anything.

Our partner lenders offer personal loans ranging from $200 to $5,000. The exact amount you're offered depends on factors like your income, credit profile, and the lender you're matched with.

Most personal loans can be used for almost any purpose, including debt consolidation, emergency expenses, car repairs, medical bills, or unexpected bills. Your lender may ask what the loan is for, but it typically won't restrict how you spend the funds once approved.

Once approved, funds can be deposited into your bank account as soon as the next business day. Many of our partner lenders offer same-day funding for applications submitted early in the morning.

Yes. We use bank-level 256-bit SSL encryption to protect your personal information, and your details are only shared with the lenders you choose to proceed with, never sold to third parties. Always read the terms of any offer carefully before accepting, and only borrow what you can comfortably repay.

There's no single minimum credit score required to check your rate. We work with a network of lenders who consider all credit types, whether you have excellent credit, fair credit, or are still building your credit history.

Yes. Many of our partner lenders specialize in working with borrowers who have less-than-perfect credit. Your rate and terms may differ from someone with excellent credit, but a lower credit score doesn't automatically disqualify you.

Typically you'll need a valid government-issued ID, proof of income, an active checking account in your name, and a valid email address and phone number. Some lenders may request additional documents depending on your situation.

Yes. Self-employed applicants can qualify, though you may be asked to provide additional proof of income, such as recent bank statements, since you won't have traditional pay stubs.

There's no fixed income threshold across all lenders, requirements vary based on the lender and the loan amount you're requesting. Generally you'll need a steady source of income and an active checking account to be considered.

You need to be a Canadian citizen or permanent resident, at least 18 years old, to apply through LoanHero. Some lenders may have additional requirements around how long you've held a Canadian bank account or credit history, which can vary by lender.

Interest rates vary by lender and depend on factors like your credit profile, loan amount, and term length. Any rate and fees you're offered are disclosed clearly before you accept a loan, so you can compare offers with no obligation.

This depends on the lender. Most of our partner lenders offer fixed-rate loans, meaning your interest rate and payment stay the same for the life of the loan, but always confirm the rate type on the specific offer you're reviewing.

Loan terms vary by lender and loan amount. You'll see the exact repayment period, along with your rate and total cost, clearly laid out in your offer before you accept anything.

No hidden fees! Any fees a lender charges are disclosed upfront in your loan offer, before you agree to anything. We believe in complete transparency.

Your interest rate is the cost of borrowing the principal, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus any additional lender fees, giving you a fuller picture of the true annual cost. When comparing offers, APR is usually the more accurate number to look at.

Our application takes just a few minutes to complete online. After you submit your information, you'll typically see your matched offers right away, with no obligation to accept any of them.

No! We use a soft credit pull to check your rate, which does not impact your credit score. Only when you accept a loan offer and proceed with a specific lender will a hard inquiry be made.

Co-signer availability depends on the individual lender you're matched with, not all lenders in our network offer co-signed loans. If having a co-signer would help your application, it's worth mentioning when you review your offers.

We match you with offers from our network of lenders based on your profile. You can review the rates, terms, and fees for each offer with no obligation, and choose the one that works best for you before proceeding with that lender directly.

Our process is designed to show you multiple matched offers from a single application, so there's no need to submit separate applications to compare options. Applying to several lenders separately outside our network could result in multiple hard credit inquiries.

Once you accept an offer, your chosen lender sets up your repayment method, usually automatic withdrawals from your checking account on a set schedule. Exact payment options depend on the lender.

This depends on your lender's terms, which will be disclosed in your loan offer. Many lenders allow early repayment without penalty, but always check the specific terms before accepting an offer if paying it off early matters to you.

Missing a payment can result in late fees and may affect your credit score, depending on your lender's policy. If you think you'll have trouble making a payment, contact your lender as soon as possible, many are willing to work with you on a revised plan.

Some lenders allow you to adjust your payment due date to better align with your pay schedule. This isn't guaranteed across all lenders, so check with your specific lender directly once you've accepted an offer.

Reach out to your lender directly and as early as possible, many offer hardship options like adjusted payment plans. Avoiding the issue can lead to late fees and credit score damage, so it's always better to communicate early.

It depends on your needs. Personal loans typically offer a fixed rate, fixed term, and predictable monthly payment, which can suit a one-time expense or debt consolidation. Credit cards offer ongoing, revolving credit but often carry higher rates if you carry a balance.

A personal loan is typically unsecured and doesn't require collateral, while a home equity loan is secured against your home and generally requires built-up equity. Home equity loans can offer lower rates but put your home at risk; personal loans don't carry that risk but may have higher rates.

A personal loan gives you a lump sum upfront with a fixed repayment schedule, which suits a specific, one-time expense. A line of credit gives you ongoing access to funds up to a limit, which you can draw from as needed, better suited to variable or recurring expenses.

Both have trade-offs. Online lenders, like the network LoanHero connects you with, often offer faster approvals, more flexibility across credit profiles, and a fully online process. Traditional banks may offer relationship perks if you're already a customer, but often have stricter criteria and slower processing.

Credit unions can be a good option if you're already a member, sometimes offering competitive rates and more personalized service. They may, however, have stricter membership requirements and slower approval processes compared to the online lender network LoanHero connects you with.