The application process with Fairstone is designed to be straightforward and user-friendly. Here’s how it generally works:
- Prequalification: Start with an online prequalification tool that gives you estimated loan offers without affecting your credit score.
- Application Submission: If you like the initial offer, you can proceed with the full application.
- Phone Consultation: A loan advisor will call you to discuss your financial situation and tailor an offer to your needs.
- Document Submission: You’ll need to provide documentation, such as proof of income, which can be done through a local branch.
- Funding: Once approved, funds can be deposited into your account quickly, especially for unsecured loans.
Frequently Asked Questions (FAQs)
1. What types of personal loans does Fairstone offer?
Fairstone offers both secured and unsecured personal loans. Secured loans require collateral (like a vehicle or home equity), while unsecured loans do not. The type of loan you qualify for will depend on your financial profile and the amount you wish to borrow.
2. Will applying for a Fairstone loan affect my credit score?
Using the online prequalification tool will not impact your credit score, as it involves a soft credit check. However, if you proceed with the full application, Fairstone will perform a hard credit inquiry, which may temporarily affect your credit.
3. How quickly can I receive the funds?
Once your loan is approved and all documentation is submitted, funds can be deposited as quickly as the same or next business day—especially for unsecured loans.
4. What documents do I need to provide?
You’ll typically need to submit:
- Government-issued ID
- Proof of income (pay stubs, tax returns, or bank statements)
- Proof of address
- Information on any collateral (for secured loans)
5. Can I repay my loan early?
Yes, Fairstone allows early repayment of loans without charging prepayment penalties. This can help you save on interest if you’re able to pay off the loan ahead of schedule.
6. Are Fairstone’s interest rates competitive?
Fairstone’s rates tend to be higher than those from traditional banks, especially for unsecured loans. However, they are more accessible to individuals with average or poor credit who may not qualify elsewhere.
7. Is Fairstone a regulated lender in Canada?
Yes, Fairstone is a licensed and regulated lender that operates under provincial and federal laws in Canada. They are a reputable institution with over 100 branches nationwide.
8. Do I need to visit a branch in person?
Not necessarily. While you may choose to finalize your loan in a local branch, Fairstone offers options for online applications, document uploads, and even virtual consultations, depending on your province and the type of loan.
9. Can I apply for a loan with a co-signer?
Fairstone does allow co-signers in some cases, which can help applicants with limited credit history or lower income qualify for better loan terms.
10. What happens if I miss a payment?
Missing a payment may result in late fees and could negatively affect your credit score. Fairstone encourages borrowers to contact them immediately if they anticipate trouble making a payment, as they may offer flexible solutions.
Final Recommendation
Overall, Fairstone presents a solid and reliable option for personal loans in Canada. While their interest rates may be higher than those offered by traditional banks, they provide an accessible alternative for individuals who may not qualify elsewhere due to credit limitations or income instability. With a straightforward application process, responsive customer support, flexible loan terms, and quick access to funds, Fairstone is especially suitable for borrowers seeking a fast and practical solution to cover urgent financial needs. If you’re looking for convenience and personalized service—even if your credit isn’t perfect—Fairstone is definitely worth considering.
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