LoanConnect is one of Canada’s online platforms for unsecured personal and instalment loans. Its innovative search engine helps Canadians quickly find a loan that matches their needs at an affordable price.
So, if you have a poor credit score and are looking for fast loan approval, LoanConnect provides opportunities for you to get fast loan approval with low-interest rates. It is specifically designed to provide solutions for different loan needs.
This LoanConnect review covers everything you need to know about the search engine in order to make an informed decision.
What is LoanConnect?
LoanConnect is a loan search engine that connects unsecured personal loan lenders with borrowers. It is Canada’s best location for finding loans at competitive rates.
Founded in 2016, LoanConnect operates online and services all Canadian provinces and territories. It is based in Toronto, LoanConnect offers access to a wide range of loans, ranging from debt consolidation loans to business loans, among others.
Currently, you can receive up to $50,000 in loans for 6 to 60 months at a 1.90% to 46.96% annual percentage rate (APR) on LoanConnect Canada.
Pros and Cons of LoanConnect
It’s not safe to jump to LoanConnect without understanding its pros and cons. Like other loan search engines, LoanConnect has its benefits and downsides.
Pros
- LoanConnect links you with unsecured loan lenders that charge low-interest rates, ranging from 5.75% to 46.96%.
- It offers a wide range of loan types
- It partners with lenders that approve requests for people with poor and excellent credit scores
- It offers access to one of the industry’s highest loan amounts.
- The loan application is simple and can be done with a smartphone and desktop. Once approved, you will get your loan deposited within 24h hours.
Cons
- LoanConnect is not a direct lender as it only connects you with different unsecured loan lenders
- It only offers 25 unsecured loan lenders, which limits your options for choosing a better loan.
What Types of Loans Are Available on LoanConnect?
The following are some of the unsecured personal loans you can apply on the platform:
- Debt consolidation loans
- Home renovation loans
- Business capital loans
- Bad credit loans
- Medical coverage loans
- Emergency loans
The interest rate on loans is calculated is determined by how the lender assesses your creditworthiness, i.e., based on your credit history and personal information.
Is LoanConnect Legit?
Absolutely. LoanConnect is a legitimate loan search engine that connects lenders with borrowers. It partners with over 25 top lenders, such as Borrowell, Lending Arch, KOHO, etc.
Furthermore, LoanConnect is accredited by Better Business Bureau with an A+ rating. The company was also rated 4.8/5 on TrustSpot based on 157 customer reviews.
Does LoanConnect Affect Credit Scores?
LoanConnect does not affect your credit score when you apply for a loan. This is because LoanConnect doesn’t conduct a hard credit check when connecting you with lenders.
However, your potential lender will run a soft credit check when assessing your loan request. But unlike a hard credit check, a soft credit check doesn’t affect your credit score negatively.
But if your potential lender needs to run a hard credit check, you will be notified before proceeding. You can consent or reject the hard credit check.
Overall, LoanConnect most often helps borrowers improve their credit scores, not reduce them. When you make extra loan payments, you’re likely to increase your credit score while decreasing your loan interest.
How to Apply For a Loan Through LoanConnect
Applying for a loan through LoanConnect is simple for everyone who can operate a smartphone. However, you must meet LoanConnect requirements to apply for unsecured loans through the platform.
- Be a Canadian resident
- Reach the age of the majority of your province/territory
- Your total debt shouldn’t exceed 60% of your income
The following are step-by-step processes on how to apply for a loan through LoanConnect:
Step 1:
Login to the LoanConnect application website
Step 2:
On the next page, you will be required to enter information about your:
- Loan amount
- Loan purpose
- First and last name
- Email address
- Date of birth
- Phone number
- Street address
- Employment status
- Annual income
- Citizenship status
- Housing status
After filling in all the boxes, you have the option to allow or disallow a soft credit check that will not impact your credit score. You will also be required to accept LoanConnect’s Terms and Conditions and Privacy.
Ensure you read the loan profile beneath the application form before consenting. This contains information about the current interest rate and applicable fees.
Step 3:
The next page will require information about your credit score, housing, and other expenses. Once you enter the information, click the “Find a loan” button to proceed.
Step 4:
LoanConnect will automatically match you with a handful of lenders that suit your situation. However, you can request another option by emailing the LoanConnect support team at support@loanconnect.ca.
LoanConnect vs Loans Canada: Which to Choose?
Features | LoanConnect | Loans Canada |
APR | 5.75% - 46.96% | 2.99%-46.96% |
Loan Amount | $300 - $50,000 | $500- $300,000 |
Loan Term | 3-120 months | 4 - 60 months |
Credit Score Requirements | None | None |
Loans Canada is one of the top competitors of LoanConnect in Canada. Loans Canada has been in existence since 2012, offering low-interest loan solutions to Canadians.
LoanConnect and LoansCanada share a few similarities and more differences. For example, both loan search engines don’t have credit score requirements.
Loans Canada provides more access to low-interest loans than LoanConnect. Furthermore, you can get access to more loans on Loans Canada than LoanConnect, because Loans Canada has hundreds of partner lenders to choose from.
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Final Thought on LoanConnect Review
Loans have been an integral part of our lives, making it essential to look for low-interest loans at all times.
Unfortunately, having a low credit score is a weakness in qualifying for most loans in Canada. Most lenders that offer loans for people with poor credit scores charge high-interest rates to protect themselves against default.
Thankfully, loan search engines provide access to low-interest rates for people with poor credit scores. However, it’s obvious from this LoanConnect review that not all loan search engines are the same.
Overall, my LoanConnect review is positive.
