LendingMate Personal Loan: Review 2018

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LendingMate Guarantor Loans

  1. No credit? Have a guarantor to vouch for you? This is the lender for you
  2. Cash in less than 24 hours
  3. Borrow up to $10,000
  4. No credit check loan
  5. Bad Credit is OK
  6. No income requirement

Guarantor loans with LendingMate: A great option for people with poor credit

LendingMate can approve you up to $10,000 regardless of your credit as long as you have are not bankrupt, and have a friend or family member who trusts you will make your payments on time.

Currently offered in BC and Ontario.

What is a guarantor loan?

These types of loans are great if you are just getting started establishing your credit, you know you will be responsible with your payments and you have someone who can vouch for you.

If you have been turned down for a loan or credit card in the past, these are great loans for you to start building your credit back up.

If you have haven’t been able to get a loan in the past due to poor credit scores, one great option for you is to ask a friend or a family member to be a guarantor.

  • You only pay interest for the amount of time that you have loan so even if you borrowed $5000 over 36 months but paid the loan back in 12 months, you would only be paying interest on the 12 months
  • There are no fees for early payout (this means you can speed up your repayment with any extra cash you have)
  • Even if you are on benefits you could be approved for the loan, as long as you have some way to pay the monthly payments (you don’t need full time employment)
  • Your guarantor needs to be between the ages of 19 and 75 with good credit history and are able to make the payment IF you miss a month
  • You can use the money you borrow to pay of payday loans, weddings, car repairs and anything like that

Reasons why you might need a guarantor

If you need financing, you probably want to get approved for a loan on your own. But there are various reasons you might get rejected and need a guarantor to improve your approval odds. Here are some reasons you might need a guarantor:

  1. You have poor credit. If you have poor credit and a history of missed payments or high credit utilization, it can make you a less desirable loan candidate. If you have applied for too many lines of credit in a short period of time, this may also be a red flag as lenders may deem you an irresponsible borrower who relies heavily on credit.


  1. You don’t have an established credit history. It’s not just bad credit that can get you rejected. If you don’t have a verifiable credit history, you pose a risk to a lender.If a lender is unsure whether you can make payments on time, you may need a guarantor. Your credit report and your credit score illustrate your “creditworthiness” — or how eligible you are for credit and the likelihood you’ll pay back your loan. If you have nothing to show, it can be difficult for a lender to trust you and lend you money.


  1. Your income is too low for the amount you want to borrow. Some lenders may look at your income to verify that it can support the amount you are borrowing. If your income doesn’t meet the lender’s criteria, you may be rejected and need a guarantor. Regardless of the reason, having a guarantor can help you get approved for the loan you need. If you can find the right guarantor to help you secure financing, you can work to improve your credit too.


Top benefits of a loan with LendingMate


Poor credit? No problem!


Funds in less than 24 hours


Use this to build your credit score over time

What do you need to know about guarantor loans?

Having a guarantor can be a godsend if you really need to get approved for a loan but cannot qualify on your own. However, there are some important things to consider before applying for a guarantor loan.

First, clearly discuss the loan and repayment with the guarantor. Will you be fully responsible for the repayment or will he help out? Also, if the guarantor is simply using his good credit to help you co-sign the loan and get approved — but nothing more — things can get complicated if you end up missing payments.

Since the guarantor is legally responsible for the payments, keep in mind that if you become delinquent on the loan this can potentially ruin your relationship. So, if you have a family member act as a guarantor, make sure you both understand the ramifications and benefits.  

It’s also important to note that guarantor loans can have high APRs. Why? Because even though there is a guarantor, the loan APR is determined by the primary borrower’s credit profile. This means that your potential poor credit can lead to a high APR, resulting in higher-than-average interest charges that add to the cost of the loan.

Lastly, if you decide to work with a guarantor, choose someone with a good credit score and strong credit history as this will help you get approved for the loan.


How do guarantor loans work?

If you want to take out a loan but don’t have great credit, check to see if the type of loan you want will take on a guarantor.

Whereas you may want to apply for personal loans or some other type of loan, remember: You may not get approved on your own. In this case, you can turn to a guarantor on the loan to help improve your odds for getting approved.

If it’s possible to add a guarantor, find the right person to help you out. Guarantors who co-sign on loans are typically family members or friends. If someone agrees to be a guarantor, you can add them as part of your loan application to help you get approved.

The loan is still your responsibility and in your name. You will need to pay it back. However, if you end up missing payments and end up defaulting, your guarantor could be called upon to repay the loan. You and the guarantor probably don’t want this to happen, so it’s important to communicate and have set boundaries about the loan before you get into this arrangement.

For starters, protect yourself and the guarantor by making sure you apply for a loan that you can pay back on your own. Evaluate the amount you are borrowing as well as the repayment terms. Finally, make sure the monthly payment amount is in line with your budget so you can stay in good standing with the loan.

Taking out this loan and making payments on time can work in your favor by illustrating a solid repayment history. In turn, this can boost your credit score.


Most asked Questions about LendingMate

What products do you offer?

Fixed term loans for Canadians that can be funded in as fast as 24 hours.

What are your loan amounts and terms?

Borrow from $2000 to $10,000 over 1 to 5 year terms. Interest rates are fixed at 43% annual rate. However you can repay the loan earlier with no fees, and reduce the interest you repay. All details of your overall costs will be outlined in your loan agreement.

How does the application process work?

  • Apply online and send the invite link for your guarantor to fill out their application.
  • Your guarantor will receive a link to fill out their part and a quick call to confirm their details
  • Once your loan is approved, the funds can be deposited in less than 24 hour (this will be after your guarantor is approved). Funds go into your guarantors account and then they can transfer them into yours.

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