Fora line of credit review

Our verdict

The Fora line of credit is an unsecured line of credit for borrowers who may not be eligible for funding from traditional lenders. Fora Credit is an entirely online lender, so you can apply and get funded without leaving home, and it's possible to get your money the same day. There are also no fees to contend with, but keep in mind that a high interest rate applies and the line of credit is only available in selected provinces.

Best for: It's best for people who want fast access to flexible funding but may not qualify with a traditional lender.

Pros

• Apply online
• Same business day funding available
• Only pay interest on the funds you use, not your entire credit limit
• No additional fees

Cons

• Only available in Ontario and Alberta
• 46.9% interest rate
• New provider so limited customer reviews

Loan Amount

$1,000 - $10,000

Interest Rate

46.90%

What is Fora?

Fora Credit is a new online credit provider in the Canadian marketplace. Launched in November 2022, it offers a personal line of credit to customers in Ontario and Alberta.

Fora is an online-only lender that aims to provide solutions for borrowers who struggle to access credit from traditional lenders. Its website lists a PO box address in Ontario, and the lender can be contacted via phone, email, text and online chat.

Is Fora legitimate?

Fora Credit Inc. has a high cost credit business licence in Alberta. Fora Credit is a brand of Propel Holdings Inc., an online fintech company listed on the Toronto Stock Exchange.

Propel Holdings was founded in 2011 and is headquartered in Toronto. It operates two other brands that serve American consumers:

• MoneyKey offers unsecured loans and lines of credit. Take a look at the MoneyKey review from Finder US for more details.
• CreditFresh offers lines of credit ranging from $500 to $5,000. Check out the CreditFresh review on our US site for more information.

Fora line of credit features

Line of credit interest rates in Canada

What we like about Fora’s line of credit

• Only pay interest on what you borrow. When you take out a Fora line of credit, you only pay interest on the money you withdraw, not the total credit limit.
• Quick and easy application. You can apply for a line of credit online within minutes, and Fora uses online bank verification to speed up the application process.
• Get funds the same business day. When you request a draw on your line of credit, your funds can be deposited into your bank account as soon as the same business day. Check Fora’s FAQ page for more details about funding times.
• No extra fees. Fora does not charge any application, origination, late, annual or draw fees on its line of credit.
• Customer support. Have a question about your line of credit? You can get in touch with Fora’s customer support team via phone, email, chat or text.

What to watch out for

• High interest rate. A high interest rate of 46.9% applies to the Fora line of credit, so watch out for the high cost of borrowing. Make sure you compare a range of other options to find an affordable loan option that meets your needs.
• Open-ended. The Fora line of credit doesn’t have a fixed term, so you don’t need to pay your balance off in full by a set date. Instead, you need to make a minimum payment each billing cycle. However, take note that if you only ever make the minimum payment, you’ll end up paying much more interest than if you repay what you borrow as quickly as possible.
• Not available everywhere. At the time of writing, only residents of Ontario and Alberta could access a Fora line of credit.

Summary of Fora reviews

Unfortunately, as Fora Credit is such a new brand, we couldn’t find any online reviews from previous Fora customers.

However, it’s worth mentioning that we found plenty of reviews for the two US brands managed by Propel Holdings:

• MoneyKey has an average score of 4.6 out of 5 from more than 3,000 reviews on Trustpilot.
• CreditFresh has an average score of 4.6 out of 5 from more than 2,100 reviews on Trustpilot.

Alternatives similar to Fora line of credit

Am I eligible for a Fora line of credit?

You’ll need to satisfy the following criteria to qualify for a Fora line of credit:

• Be a Canadian citizen or permanent resident.
• Be a resident of Ontario or Alberta and 18 years or older.
• Have an active personal bank account.
• Have a steady source of income that you receive via direct deposit.
• Provide your phone number and email address.

How to apply

It’s quick and easy to apply for a Fora line of credit online. Here’s what you need to do.

1. Visit the Fora website and click on “Apply Now”.
2. Select your province and enter your email address.
3. Choose the amount of credit you want to apply for.
4. Create a password for your account.
5. Review and agree to Fora’s privacy policy, terms of use and electronic communications agreement.
6. Provide your name, date of birth and mobile telephone number. You also have the option of providing your Social Insurance Number to help the lender verify your identity.
7. Provide details of your income.
8. Verify your bank account.
9. Submit your application.

You’ll receive an email notification if your application is approved. The application process can be completed in minutes, and it’s possible to get your funds as soon as the same business day.

How much will a Fora line of credit cost?

There are no fees to access and use the Fora line of credit; however, like all loan products, there are costs associated with the use of the loan. In particular, borrowers need to understand how the interest rate is charged. As per industry standards, Fora’s interest is calculated daily on the balance owed. Based on Fora’s 46.9% annual rate, this works out to approximately 0.1285% — the annual rate, divided by 365 days.

An advantage of Fora’s line of credit is the ability to make interest-only monthly payments, known as the monthly minimum payment. Keep in mind making minimum monthly payments won’t pay off the loan, only cover your cost to borrow.

For instance, if you have an outstanding balance of $2,000, your minimum monthly payment would be just under $112 with $72 used to pay the interest charges and $40 used to pay down the loan.

Frequently asked questions

• Will my credit score be affected when I apply for a line of credit from Fora?

  It depends. If you apply and Fora doesn't approve your application, your credit score will not be affected. On the other hand, if Fora wants to proceed with your application, it will run a hard credit check.

• How do I pay back my line of credit?

  If you provide a pre-authorized debit authorization to Fora, minimum payments will be automatically debited from your nominated bank account. However, you can also log into your Fora account to make repayments using a debit card or prepaid card.

• Is a Fora line of credit a payday loan?

  No. Unlike a payday loan, which is a short-term loan with a fixed term, a line of credit is open-ended. This means you get access to credit as and when you need it (up to your approved limit), and you do not have to repay your entire balance all at once.