Mogo Mini Line of Credit review
Access up to $3,500 via a flexible line of credit available to borrowers with bad credit and low incomes.
To qualify, you must be of the age of majority in your province or territory with a net annual income of at least $13,000.
Max. Loan Amount
Min. Credit Score
If you’re in a financial pinch and you need to gain quick access to cash, a Mogo Mini Line of Credit is an option providing plenty of flexibility compared to payday loans. Here are some of the product’s highlights:
- Think of a Mogo Mini Line of Credit if you’re looking for a flexible loan option. Withdraw only what you need, make payments on the interest only, and repay your outstanding principal at any time. You can also pay off your entire loan whenever you like with no prepayment penalties.
- Pick something else if you need more than $3,500, which is the maximum allowance you can borrow with Mogo Mini. You may have to look elsewhere for larger personal loan options.
- Keep in mind that Mogo Mini isn’t available in Quebec or the Yukon.
What makes Mogo Mini unique?
The Mogo Mini Line of Credit is all about a smooth experience for the customer. Borrowers can apply online to receive a no-obligation pre-approval in minutes after setting up a Mogo account, with funding transferred over within the same day. Borrowers can then access their funding and track their loan repayments online or via the Mogo app. They can even set up alerts to remind them about payments and other important information.
Mogo Mini focuses on flexibility for the customer. Minimum loan repayments cover just your interest and extra fees, but you can pay off all or part of your loan whenever you like without incurring any prepayment charges. Keeping up with your loan repayments for 3 consecutive months also gives borrowers access to the Level Up program, which unlocks options such as a higher credit limit of up to $35,000 and lower interest rates from 16.9% to 46.96%.
If you’re comparing Mogo Mini to a payday loan, Mogo suggests its line of credit is up to 88% cheaper. Its estimates peg Mogo Mini interest charges at $1.83 per $100 per 14 days, while payday loan rates in B.C., Alberta and Ontario are $15 per $100.
What are the benefits of a Mogo Mini Line of Credit?
Lines of credit are pretty handy in case of a financial emergency, and Mogo Mini is no exception. Here’s the lengthy list of perks that come along with a Mogo Mini Line of Credit:
- Anyone can apply. Mogo says all borrowers, even those with a bad credit history, can apply. Eligibility requirements are at a baseline: You must be of the age of majority in your province and you must earn a minimun income of $13,000/year.
- An online-only application process with a quick turnaround on loan decisions. Borrowers can apply for a Mogo Mini Line of Credit completely online after setting up a Mogo account. You should receive a no-obligation pre-approval within just minutes after applying.
- Manage your line of credit completely online. Mogo has a user-friendly app and dashboard to help you keep track of your account, including making withdrawals from your line of credit and managing upcoming payments. You can even set up alerts to remind you of an upcoming due date.
- Cheaper than a payday loan. Mogo suggests that its line of credit is up to 88% cheaper than a payday loan. Its estimates peg Mogo Mini interest charges at $1.83 per $100 per 14 days, while payday loan rates in B.C., Alberta and Ontario are $15 per $100.
- Opportunity to “Level Up”. If borrowers keep up with their loan repayments for 3 consecutive months, they can “Level Up”, unlocking opportunities for a higher credit limit of up to $35,000 and lower interest rates from 16.9% to 46.96%.
- Know your credit score for free. Mogo members receive free Equifax credit score monitoring.
- Free Mogo Visa Platinum prepaid credit card. Mogo account holders also receive a free prepaid credit card to use with their daily spending.
- No early repayment penalties. Borrowers can pay off some, or all, of their line of credit balance whenever they like without incurring any prepayment penalties.
What to watch out for
Before you decide to shoulder more debt, it’s wise to take stock of the drawbacks that come with a Mogo Mini Line of Credit. They include:
- Steep interest rates. Interest rates are set at 47.42%, which is higher than what you’d get if you applied for a personal loan or line of credit via a traditional lender, such as a bank or credit union. Some online lenders may even have lower interest rates on offer too.
- Low maximum borrowing amount. You can only borrow up to $3,500 with a Mogo Mini Line of Credit. This amount may be too low for some borrowers.
- Potential for additional charges. Borrowers will face some sticker shock from various charges, including email money transfer fees ($19.99) and insufficient funds fees ($50). To waive these charges, borrowers must buy a Mogo Mini Service Bundle at $14.99 per month to receive perks like free email money transfers, skip a payment twice a year, and priority funding so you receive your cash faster.
- No in-person interaction. While Mogo has head offices in Vancouver, Surrey and Winnipeg, you can’t visit a physical storefront to receive in-person customer service.
- Unavailable across Canada. Quebec and the Yukon aren’t serviced by Mogo.
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Am I eligible?
To be eligible for a Mogo Mini Line of Credit, you need to:
- Be a Canadian resident.
- Meet the minimum age requirement, which varies from province to province.
- Have a minimum net income of $13,000/year with proof of your income.
- Have an active bank account in your name with direct deposit capability.
- Have a valid phone number, mailing address and email address.
How do I apply?
If you’re ready to apply for a Mogo Mini Line of Credit, follow these steps:
- Click “Go to site” to set up your account and username. Plug in your email address and create your password. Hit “Get Pre-approved”. You’ll need to verify your email address to proceed.
- Start your loan application. Fill in your legal name, date of birth, home address and what you’re looking for (a line of credit). Click “Next”.
- Fill in prompts on how much cash you’re hoping to borrow, the purpose for your line of credit application, your monthly rent or mortgage payments, and your employment information.
- Provide Mogo with your phone number, then click “Check your rate” to receive your no-obligation pre-approval.
- If you’re happy with your loan pre-approval, you may proceed with your loan application and identity verification. Chat with a Mogo loan specialist over the phone or online if you have any questions.
Is Mogo legitimate?
It is. Mogo was established in 2003 and now has more than 1.6 million members borrowing cash via its platform. It has a headquarters in Vancouver, with satellite offices in Surrey and Winnipeg. The fintech company has also garnered several awards, including Apple’s 2019 Apps We Love and a Canadian Mortgage Award for best use of mobile technology. Mogo has been featured on the CBC, the Globe and Mail, Business News Network and the National Post.
Overall, Mogo offers about half a dozen loan products, including personal loans, identity fraud protection, prepaid debit cards and Bitcoin exchange. It started publicly trading on the Toronto Stock Exchange and Nasdaq in 2015.
I got the Mogo Mini Line of Credit, now what?
Once you have a Mogo Mini Line of Creditt, you can access the cash whenever you need it, and you’ll only have to repay what you withdraw. Keep an eye out for your outstanding balance that needs to be repaid and make sure you’re staying on top of your monthly repayments.
Minimum repayments are made only on the interest on your loan to keep loan repayments affordable. However, you can repay some or all of your loan whenever you want without incurring early repayments penalties, which is a nice perk.
Mogo has an award-winning app to help you manage your line of credit. Use it to help you stay organized and set up reminders for upcoming due dates.
Lines of credit are helpful to have on hand in case life throws you a curveball and you don’t have an emergency savings fund. If you’re shopping for a line of credit, Mogo Mini is a great contender with plenty of flexibility on repayment options and opportunities to request more funding and lower interest rates.
As always, do your homework and comparison shop between lenders before deciding on which loan option and lender you want to go with. Overall, Mogo Mini has lower interest rates and better terms compared to payday loans, but borrowers may find better options with personal loans and lines of credit provided by banks and credit unions.