Prudent Financial Services review

What is Prudent Financial?

Prudent Financial is a Toronto-based lender specializing in bad credit loans. It offers home equity and car title loans to Ontario borrowers, and a past bankruptcy or consumer proposal won’t stop you from qualifying for a loan.

Once you apply for a loan, Prudent Financial says it offers decisions within 30 minutes and same-day loan funding.

Is Prudent Financial legit?

Prudent Financial Services was established in 1984 and is headquartered in Toronto. It has an active social media presence and has received hundreds of customer reviews online.

While it is not accredited by the Better Business Bureau (BBB), it has a BBB rating of A+. It also reports your loan payments to the credit bureau to help you improve your credit score.

Prudent Financial loan features

Feature	Details
Loan amount	Up to $100,000
Loan term	1 – 5 years
APR	6.99% – 56.5%
Serviced provinces	Ontario
Eligibility requirements	Home equity loan: Must have 50% equity in your home Vehicle title loan: Must have a paid-off vehicle 6 years or newer or an older luxury vehicle

What are Prudent Financial’s loans?

Prudent Financial Services offers the following loan types:

• Vehicle title loans. If you own a vehicle that’s less than six years old, Prudent Financial offers car title loans of up to $5,000. The lender says that these loans are open and can be paid back at any time. Learn more about car title loans.
• Home equity loans. If you want to borrow against the equity in your home, Prudent Financial offers home equity personal loans of up to $5,000.
• Motorcycle storage loans. This type of loan is essentially a vehicle title loan that lets you borrow against the equity in your motorcycle, plus it comes with free storage for your bike. You can borrow up to $5,000 with this type of loan.
• Mortgages. Prudent Financial Service also runs Prudent Mortgage Corp, a licensed mortgage brokerage that can help you compare loans and rates from multiple lenders. Loans of up to $100,000 are available.
• Car loans. Prudent Financial offers same-day car loans through its Prudent Value Cars used car dealership, and offers vehicle financing to dealerships throughout Toronto. Learn more about Ontario car loans for bad credit.

Can you get an unsecured personal loan from Prudent Financial?

No. While Prudent Financial advertises a “Home Equity Loan (unsecured)”, they require a vehicle to register for collateral, which means this is actually a secured loan.

You’ll need to consider other options if you’re searching for an unsecured personal loan for bad credit.

Dive deeper: Best bad credit loans in Canada

What are Prudent Financial’s interest rates?

Prudent Financial says the interest rates on its loans range from 5.75% - 9.9%. However, please note that this rate doesn’t include loan fees, and Prudent Financial charges an annual fee ranging from 10% to 19%.

As a result, the APR that applies to your loan could range from 6.99% up to a maximum of 56.5%. A 56.5% APR will make your loan very expensive to repay, so make sure you know exactly how much your loan will cost before signing the contract.

Related: Personal loan rates in Canada

What we like about Prudent Financial Services

• Established lender. Prudent Financial Services has been offering bad credit loans in the Greater Toronto Area since 1984.
• Bad credit is OK. If you have bad credit, a past bankruptcy or consumer proposal, it’s still possible to qualify for a loan from this lender.
• Improve your credit. Prudent Financial says it reports your loan payments to the credit bureau, so making on-time payments can help you rebuild your credit score.
• Easy application process. You can apply for a Prudent Financial Services loan in minutes by submitting an online application.
• Fast approvals and funding. You can apply and get approved within 30 minutes, and Prudent Financial Services says it offers same-day loan funding.
• No proof of income required. As Prudent Financial is an equity lender, you don’t need to provide proof of income to qualify for a loan.

What to watch out for

• High APRs. Prudent Financial loans come with APRs of up to 56.5%, so be aware that your loan may be very expensive to repay.
• Fees. An annual fee ranging from 10% to 19% of your loan amount applies when you borrow with Prudent Financial Services.
• Unclear loan features. There’s limited information on the lender’s website about factors such as repayment schedules and exactly how borrowing works.
• Only available in Ontario. If you live somewhere other than Ontario, you’ll need to consider other lenders.

Alternatives to Prudent Financial

What do Prudent Financial reviews have to say?

While customer reviews for Prudent Financial Services generally tend to be positive, there are also some negative customer reviews. People who left positive reviews commented on factors such as a fast and efficient application and funding process, and friendly customer service.

However, people who left negative reviews sometimes complained about loan fees.

Summary of Prudent Financial Services reviews

Feature	Details
BBB accredited	No
BBB rating	A+
Google reviews	4.4 out of 5 stars, based on 463 Prudent Financial Services reviews
Trustpilot reviews	4.0 out of 5 stars, based on 157 Prudent Financial Services reviews
Facebook reviews	No Prudent Financial Services reviews available
Customer reviews verified as of	March 21, 2024

Prudent Financial reviews from Finder survey

What are the eligibility requirements of Prudent Financial loans?

Prudent Financial Services only offers loans to residents of Ontario.

If you want a home equity loan, you’ll need to have at least 50% equity in your home.

If you’re applying for a car title loan, you’ll need to own a vehicle that is less than six years old. However, if you have a luxury vehicle such as a Mercedes, BMW or Lexus that is more than six years old, you may still be able to qualify for a loan.

How to get a loan from Prudent Financial

You can apply for a Prudent Financial Services loan online or phone the lender to speak to a loan officer.

To apply online, navigate to the Prudent Financial website and click “Apply Now”. You’ll need to enter your name, email address and phone number, specify that you are a resident of Ontario, and agree to the terms and conditions.

During the application process you will need to provide:

• Proof of address
• Photo ID
• Void cheque
• Two references with names, phone numbers and addresses
• A bank statement
• If you are providing your car as collateral, you’ll need to provide proof of ownership, insurance and your licence

Bottom line

Prudent Financial Services is well worth considering if you have a less than perfect credit history but own a home or car. It’s easy to apply and loans are funded quickly, but make sure you check the fine print to find out what APR applies and how much your loan will cost.

Ultimately, it’s vital to compare a range of lenders before deciding on the right one for you.

Dive deeper: Have time? Compare 40+ personal loans