FairStone Interest Rates: Everything You Need To Know

Fairstone is an online lending company that offers personal loans to help Canadians meet their urgent financial needs. One of the most important factors to consider when taking out a personal loan is the interest rate. Hence, this article is designed to keep you informed on Fairstone’s loan interest rates to enable you to make an informed decision before taking out a loan from Fairstone.

What Is Fairstone?

Fairstone is a leading Canadian lending platform with over 240 outlets  across the country. The company was founded in 1923,  since its inception it has become one of Canada’s largest non-bank lenders. Fairstone not only offers personal loans but also offers debt consolidation loans, and home equity loans.

In the recent past, Fairstone has been gaining popularity due to flexibility in their loan terms. Fairstone loan amount ranges from $500 to $50,000, with repayment terms ranging from 6 to 120 months. This means that borrowers can choose a loan that fits their budget and financial needs. However, the loan amount that a borrower can take out from Fairstone is not fixed because it is determined by many factors like credit score.

What Are Fairstone’s Interest Rates?

The Fairstone interest rate is not fixed; it varies depending on the borrower’s creditworthiness, credit score, and loan amount. Interestingly, Fairstone offers both secured and unsecured loans, which means that a borrower can get collateral-free loans. However, the interest rate for unsecured loans (collateral-free loans) will be higher since there is no collateral needed to secure the loan.

According to Fairstone’s website, the interest rates for their personal loans range from 19.99% to 39.99% APR. However, there are different interest rates for Fairstone secured and unsecured loans. For secured loans, the interest rate ranges from 19.99% to 29.99%APR  but for unsecured loans, the interest rate ranges from 26.99% to 39.99%APR.  From the interest rate, we can see that the interest rate for unsecured loans is higher than that of secured loans. Meanwhile, this interest rate is not fixed; it varies and it is determined by some factors like your credit score, income, creditworthiness and other factors.

Apart from interest rate, it is also important to note that Fairstone charges an origination fee on their loans. The origination fee is a one-time fee that is added to the loan amount and it  varies based on the loan size and the repayment plan chosen. The origination fee for a Fairstone loan ranges from 0% to 4.99% of the loan amount.

How To Get The Best Fairstone Interest Rate?

If you’re interested in getting a loan from Fairstone, there are a few things you can do to increase your chances of getting the best interest rate. Here are some of the tips:

1.Improve Your Credit Score

Your credit score is one of the most important factors that lenders consider when determining your interest rate. If you have a low credit score, you may be offered a higher interest rate. Hence, it is important to take appropriate steps to improve your credit score before applying for a loan.

2. Choose A Secured Loan

A secured loan is a loan that is backed by collateral, such as a car or a house. Secured loans generally have lower interest rates than unsecured loans since the lender has some security if the borrower defaults on the loan. From the above section we can see that the interest rate for unsecured loan is greater than that of secured loan. 

3. Choose A Shorter Loan Term

As it is with other lending platforms, the longer your loan term, the more interest it will accumulate. The same thing is applicable to Fairstone Loan. Hence, it is best to choose a shorter loan term if you can afford higher monthly payments to reduce the interest rate.

Conclusion:

Fairstone is one of the leading lending platforms that offers flexible loan terms with reasonable interest rates. However, it’s important to know that the actual interest rate for your loan is determined by various factors like your credit score, income, and other factors. To get the best Fairstone interest rate, you should take steps to improve your credit score, choose a secured loan, and  choose a shorter loan term. The choice is yours make.

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