Review: Fairstone Financial
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Fairstone Financial is a lending solutions provider with nearly 100 years of lending experience in Canada. It offers secured and unsecured personal loans to Canadians to consolidate debt, pay for unexpected expenses, finance home renovation projects and more. In this Fairstone Financial review, we’ll look at the services offered, the types of loans and the advantages and disadvantages. In addition, we will explore the application process for secured and unsecured loans.
What is Fairstone Financial?
Fairstone Financial has been a Canadian lender for nearly 100 years. It offers secured and unsecured loans from $500 to $50,000 to consolidate debt, pay for unexpected budget expenses, finance home renovation projects and more.
Fairstone Financial‘s loan specialists will tailor the loan to each customer’s borrowing needs and budget. Services are available online or at any of Fairstone’s 250 branches across Canada.
Borrowers can start by requesting an estimate online, with no obligation and no impact on their credit score. This provides an estimate of the amount of money that can be borrowed. If the borrower is happy with the estimate, he or she can finalize the loan application in-branch or online and receive the money in just 24 hours.
Please note that Fairstone Financial Inc. is a subsidiary of Fairstone Bank of Canada. Together, the two companies form a group that offers secured and unsecured personal loans and mortgages, point-of-sale financing with partner merchants, auto loans, credit cards and more.
What services does Fairstone Financial offer?
Fairstone Financial offers secured and unsecured loans to Canadians with credit scores between fair and good.
The 3 main services and loan types offered are :
- Personal loans: unsecured personal loans, secured personal loans and debt consolidation loans.
- Home equity loans: secured personal loans, second mortgages and mortgage refinancing.
- Point-of-sale financing: consumer financing at participating retailers.
As mentioned above, loan applications can be made online or at any of Fairstone’s 250 branches across Canada. Point-of-sale financing is available at participating retailers (e.g. Best Buy, Tanguay, Meubles RD, etc.). Finally, car financing is offered through Eden Park.
What types of loans are available?
Now, here’s more information about each of the loan types offered by Fairstone Financial.
Personal loans
Fairstone Financial offers two types of personal loan: secured and unsecured. The following table summarizes the main features of Fairstone Financial‘s secured and unsecured personal loans. So you can find the one that suits you best.
| Features | Unsecured loan | Secured loan |
|---|---|---|
| Amount of the loan | 500 $ to 25 000 $ | 5 000 $ to 50 000 $ |
| Interest rate* | 26,99 % to 39,99 %** | 19,99 % to 24,49 % |
| Term | 6 to 60 months | 36 to 120 months |
| Warranty | No | Yes |
| Payments | Fixed | Fixed |
| Fee | No | Varies by province |
| Prepayment penalties | No | Yes |
| Processing time | Less than a day | 3 days or more (depending on location) |
| Warranty | 14 days | 3 days |
*Interest rates are subject to change and may vary from province to province.
**The interest rate on an unsecured personal loan is 31.99% in British Columbia, 31.99% in Manitoba and 34.99% in Quebec.
Unsecured personal loans
An unsecured personal loan is one that is not secured by an asset such as a home. This type of loan is only protected by a contract signed by the borrower.
Unsecured loans are often used by borrowers for debt consolidation, unexpected expenses and emergencies.
Unsecured personal loan amounts at Fairstone Financial range from $500 to $25,000, with terms from 6 to 60 months and interest rates starting at 26.99%. Funds are generally available within 24 hours.
Although the interest rate on unsecured personal loans is high, the advantage is that you can repay the loan faster, and without penalty. In fact, there are no prepayment penalties, whether for additional payments or full repayment of the loan balance before the end of the term. In addition, there are no administration fees for unsecured loan applications.
On its website, Fairstone Financial provides an unsecured personal loan calculator to estimate your payments. You can determine the type of loan, loan amount, payment frequency, borrowing history and loan term.
Here is an example of a personal loan with the following characteristics:
- Loan type: unsecured personal loan
- Loan amount: $5,000
- Payment frequency: every two weeks
- Province: Quebec
- Borrowing history: Good
- Term: 60 months (5 years)
For more information on Fairstone Financial‘s unsecured personal loans, visit this page.
Secured personal loans
A secured personal loan is a loan that is secured by an asset such as a home. Borrowers typically use this type of loan for home renovations, unexpected expenses and debt consolidation.
Since the secured loan is backed by an asset, it allows you to obtain more money at a lower interest rate and more affordable payments, compared to an unsecured loan.
Fairstone Financial’s secured personal loan amounts range from $5,000 to $50,000, with terms from 36 to 120 months and interest rates starting at 19.99%. Funds are generally available within 24 hours. Secured personal loans, on the other hand, have prepayment penalties.
On its website, Fairstone Financial provides a secured personal loan calculator to estimate your payments. With this tool, you can also determine payment options, such as payment frequency and loan term.
Here is an example of a personal loan with the following characteristics:
- Loan type: secured personal loan
- Loan amount: $30,000
- Payment frequency: every two weeks
- Province: Quebec
- Borrowing history: Good
- Term: 96 months (8 years)
For more information on Fairstone Financial’s unsecured personal loans, visit this page.
Home equity loan
A loan on the net value of a home is also known as a home equity loan. This type of loan converts home equity into cash that borrowers can use for home renovations, major expenses or debt consolidation.
A home equity loan can be applied for through a secured personal loan, a second mortgage or a mortgage refinance. Mortgage interest rates start at 12.49%.
Point-of-sale financing
Fairstone Financial‘s point-of-sale financing offers purchase financing at Canadian retail partners. This type of financing allows Canadians to buy items now and pay for them later. In particular, for unexpected purchases.
Fairstone point-of-sale financing can be requested in-store or online.
Fairstone Financial‘s point-of-sale financing has partners in many retail sectors, including furniture, appliances, electronics, construction equipment and materials, automotive products and services, home and garden, and more.
Its partners include:
Car financing
Finally, Fairstone Financial auto financing is offered through EdenPark, an Ontario-based auto financing provider.
The loans allow you to borrow up to $20,000 for the purchase of a used vehicle up to 10 years old from a private individual. These loans are available over periods ranging from 6 to 60 months, and there are no prepayment penalties.
Advantages and disadvantages of Fairstone Financial
Here are the advantages and disadvantages of loans with Fairstone Financial.
Advantages:
- Nearly 100 years of lending experience in Canada
- Free online estimate
- Secured and unsecured loan options
- Personal loans up to $50,000
- Access to the funds in 24 hours
- Less stringent credit requirements (e.g., credit score) than traditional banks and credit unions
Disadvantages :
- Higher interest rates than traditional banks and credit unions
- Additional fees for guaranteed loans (administration fees, appraisal fees, etc.)
- Secured loans require home ownership
- Restrictive criteria for car financing
3.3 out of 5 on Trustpilot review site with 58% 1-star reviews
How do I get a personal loan from Fairstone Financial?
With Fairstone Financial, you can obtain a personal loan quickly and easily. Their loan specialists will tailor the loan to each borrower’s needs and budget.
The loan application process is simple:
- Start by requesting an estimate online, with no obligation and no impact on your credit score. This gives you an estimate of how much money you can borrow.
- Apply for a loan online or at a Fairstone branch. A loan specialist will contact you to tailor the loan to your needs and answer any questions you may have.
- Receive the money in your bank account. Finalize your loan application online or in-branch and receive your money in just 24 hours. In some cases, you can receive the money the same day.
Online loan application process
Now, here’s more on the process of applying for secured and unsecured personal loans online.
Unsecured personal loans
To apply for an unsecured personal loan, go to fairstone.ca and click on “Get a loan quote”. Then, simply answer a few simple questions and the Fairstone Financial system will propose a loan solution to suit your needs.
Once your application is complete, a loan specialist will contact you to tailor the loan to your needs and answer any questions you may have. If you wish, you can then finalize your loan application and receive the money in a day or less.
Secured personal loans
The application process for a secured personal loan is similar. First, go to fairstone.ca and click on “Get a loan quote”. Then, simply answer a few simple questions and the Fairstone Financial system will propose a loan solution to suit your needs.
Once your application is complete, a loan specialist will contact you to answer any questions you may have. If you wish, you can then finalize your loan application and receive the money within a few days.
My personal review of Fairstone Financial
Personally, I think loan companies like Fairstone Financial should be used as a last resort. Before arriving to this solution, there are several options that are generally more advantageous for the borrower.
No surprise there… Interest rates are (much) higher and eligibility criteria are more flexible than traditional banks, considering the target clientele.
However, the reviews left on the Trustpilot platform speak for themselves (average of 3.3 stars out of 5). Of course, I understand that it’s mainly dissatisfied customers who are going to leave a negative review on a review site (whatever the review platform, whatever the industry). That said, the same theme keeps recurring in the negative reviews left by customers: the loan and conditions are not well explained. In fact, many people complain about interest charges or administration fees charged without fully understanding how the product works. I sincerely hope that Fairstone Financial uses these reviews and feedback in their continuous improvement process (customer service, loan specialists, etc.).
To return to the other options available, the first step would be to contact your financial advisor. They are familiar with your entire file and can advise you accordingly. If you don’t have a financial advisor, you can contact your financial institution. An advisor will be assigned to your file. If the solutions proposed by your financial advisor don’t meet your needs, don’t hesitate to contact another financial institution.
If you’re a homeowner with equity in your property, consider contacting the financial institution you signed your mortgage with. You may have access to solutions such as refinancing the property or obtaining a home equity line of credit at a lower interest rate than those offered by lending companies.
Next, you can look into low-rate credit cards. You can use a credit card comparator to find the one that suits your needs. Some cards offer a no-fee balance transfer (or reduced-rate) for a pre-determined period.
Then, if none of the above options meet your needs, you can contact a trustee in bankruptcy. Many of them offer a free initial consultation.
Finally, as a last resort, you can contact loan companies such as Fairstone Financial and LoanConnect. But make sure you fully understand the product and the payment agreement before finalizing the loan application. Don’t hesitate to ask questions. After all, we’re talking about your finances and your credit rating.
It’s not all bad news. The main advantages of this type of loan include access to funds within 24 hours and less stringent credit requirements than those of traditional banks and credit unions.
Bottom Line
In short, you can get a personal loan fast with Fairstone Financial, a lending solutions provider with nearly 100 years of lending experience in Canada.
Whether it’s to consolidate debt, pay for unexpected expenses, finance home renovation projects or more, Fairstone Financial offers secured and unsecured personal loans.
For more information, don’t hesitate to contact Fairstone Financial by phone or online at fairstone.ca/en/get-in touch/personal-loans.
Frequently asked questions about Fairstone Financial
Here are the answers to the most frequently asked questions about Fairstone Financial.
What is Fairstone Financial?
Fairstone Financial has been a Canadian lender for nearly 100 years. It offers secured and unsecured loans from $500 to $50,000 to consolidate debt, pay for unexpected budget expenses, finance home renovation projects and more. Services are available online or at any of Fairstone’s 250 branches across Canada.
Who owns Fairstone Financial?
Fairstone Financial Inc. is a subsidiary of Fairstone Bank of Canada. Together, the two companies form a group that offers consumer loans. These consumer loans include secured and unsecured personal loans and mortgages, point-of-sale financing with partner merchants, auto loans, credit cards and more.
What is Fairstone Financial’s interest rate?
The interest rate varies according to the type of loan. For a personal loan, interest rates start at 19.99% for a secured loan and 26.99% for an unsecured loan. For mortgage refinancing, rates start at 12.49%. Note, however, that rates vary according to the customer’s province and factors such as credit score.
How do I get a personal loan from Fairstone Financial?
To obtain a personal loan from Fairstone Financial, the application process is quick and easy. First of all, you can request a no-obligation loan quote online. Then talk to one of our loan specialists to tailor the loan to your needs and answer any questions you may have. Then finalize your loan application online or in-branch and receive your money in just 24 hours. Finally, open a Fairstone online account to view your financing details and make or schedule payments.
What happens if you don’t pay Fairstone Financial?
Late or missed payments will incur interest charges. What’s more, late payments will have a negative impact on your credit score. Indeed, a delinquent account will be added to your credit file, resulting in a lower credit rating. However, be proactive and inform your Fairstone Financial loan specialist as soon as possible. They may be able to suggest solutions that won’t affect your credit score.
Does a Fairstone Financial loan affect your credit score?
First of all, you can request a quote online to find out how much money you could borrow. This step has no impact on your credit score, as it is a “soft check”. However, when you apply for a loan, a credit check will be performed, and this “hard check” will have a negative impact on your credit score. Note that new credit applications account for 10% of your credit score, and lost points are generally recovered within a few months.
Is Fairstone Financial safe?
Fairstone Financial Inc. has been a Canadian lender for nearly 100 years. It has over 250 branches across Canada. Customers can contact Fairstone Financial via live chat and Facebook chat. Plus, you can speak to a Fairstone Financial loan specialist over the phone or in-branch. In fact, you can find the nearest branch by using the branch locator. Finally, Fairstone Financial has obtained accreditation and an A+ rating from the Better Business Bureau, as well as a 98.5% customer satisfaction rate (survey in 2022).
How do I pay a Fairstone invoice or financing online?
To pay for your Fairstone financing, you must be logged in to manage your account online. Then click on the “Make a payment” button and follow the steps. To register for Fairstone online account management, you’ll need your account number, which you’ll find on your loan documents. Note that with online account management, you can: check your balance, make or schedule payments and view your account details. You can also view your repayment history and other important information.
How quickly can I repay my Fairstone loan?
The duration of a loan repayment is called the “loan term” or “loan repayment period”. Terms range from 6 to 60 months for Fairstone Financial unsecured personal loans. Terms vary from 36 to 120 months for asset-backed personal loans.
What is Fairstone Financial financing at Best Buy?
At Best Buy, you can use “Buy Now, Pay Later” financing. In fact, Best Buy has teamed up with Fairstone to offer customers financing plans to spread the cost of their purchases over several monthly payments. How it works is simple:
- Submit a Fairstone application online.
- Shop for products and select Best Buy financing as your payment option.
- Select a financing plan and proceed to payment.
- Pay later.
