Are you looking to take a personal line of credit through MogoMini? This review covers everything you need to make an informed decision.
While Mogo is popular for its free credit score services in Canada, it also has robust financial solutions more than similar credit service providers such as Borrowell and Mogo.
So by using Mogo, you can check your credit score and report for free while accessing a wide range of financial products in one place.
With MogoMini, you can take a maximum of $3,500 revolving line of credit and pay only the interest and applicable fees monthly. If you wish, the principal amount can wait till maturity and you can renew the credit automatically.
But is the MogoMini worth it? What are the pros and cons of taking a MogoMini line of credit? What are the best alternatives to MogoMini in Canada? This MogoMini review answers all these questions and more.
Keep reading to find out!
Table of Contents
Mogo Financial Inc, operating as Mogo is a fintech company that’s popular for its free credit score services in Canada.
The Vancouver-based company was launched in 2003 and has since attracted about 2 million Canadians with its robust collections of financial solutions.
Mogo offers its clients free access to Equifax credit scores and reports each month. It also monitors its clients’ credit and protects their identities against suspicious activities.
In addition to prepaid cards, mortgages, Bitcoin and investment platforms, Mogo also offers its clients personal loans and lines of credit.
Mogo’s contributions to the fight against climate change make it unique among other fintech companies in Canada. The company is also traded publicly under the ticker symbol “MOGO” on TSX and NASDAQ exchanges.
Learn more: Mogo Review
What is MogoMini?
MogoMini is an unsecured personal line of credit offered under Mogo’s MogoMoney program. The line of credit offers up to $3,500 credit to eligible Mogo users.
The annual interest rate of MogoMini is 47.42%. This is extremely higher than the rate of most lines of credit in Canada.
But like other lines of credit, you are only required to make a monthly payment of the credit interest and applicable fees on MogoMini. The major fees include an e-Transfer funding fee of $19.99/month and a $50 insufficient fund fee. Interestingly, these fees are waived under the MogoMini Service Bundle which charges $14.99 per month.
That being said, you can pay off the principal of your MogoMini line of credit anytime you wish without a penalty or wait till the loan reaches its 1-year maturity.
After paying off the interest and principal amount, you can renew the term automatically without passing through another application process.
And as a Mogo client, you have free access to check your Equifax credit score and report every month.
Continue to learn more about what MogoMini entails.
Key Features of MogoMini
The strength and weaknesses of MogoMini can be identified through the following key features.
1. Flexible Payments
Unlike other loans, you can pay off the entire principal of your MogoMini line of credit without any penalty.
And if you can’t afford to prepay the principal at once, you can prepay any amount without stress. As noted above, you are not under pressure to pay the loan principal until it reaches maturity.
2. 100 Days Test Drive
If you didn’t enjoy your MogoMini loan within 100 days of application, you can refund only the principal amount. By doing so, Mogo will return any applicable interest and fees charged within the 100 days.
With this offer, you will have the sense of dealing with a reliable lender that’s after your ultimate satisfaction.
3. Level Up Offer
If you apply for a Mogo-owned loan, you could qualify for the “Level Up Offer” by making prompt regular payments and paying off the loan within 3 months.
With the “Level Up Offer”, you can increase your loan amount, top up the loan amount or reduce your loan interest.
In addition, you could be eligible for a MogoLiquid loan under the “Level Up Offer”. MogoLiquid offers up to $35,000 loan with 16.9% to 46.96% APR.
4. MogoMini Service Bundle
The MogoMini Service Bundle is a MogoMini line of credit optional add-on. With this service, you will access a wide range of special offers in exchange for paying $14.99 per month. The fee will be added to your regular loan payment.
That being said, the following are the special offers under the MogoMini Service Bundle:
- Free Email Money Transfer Funding
If you opt for receiving the MogoMini line of credit through Email Money Transfer (e-Transfer), you will be charged $19.99 per month regardless of whether you use the credit.
However, by subscribing to the MogoMini Service Bundle, the $19.99 monthly fee will be waived. This helps you get fast access to the loan at no cost.
- Dishonoured Payment Fee Waived
Usually, the MogoMini line of credit has a $50 non-sufficient fund (NSF) fee. But with the MogoMini Service Bundle, the NSF fee is also waived.
However, you must remit the default payment within five business days of the failed transaction to qualify for the NSF fee waiver.
- Skip a Payment Twice a Year
Due to unforeseen circumstances, you may not be able to keep up with your regular MogoMini payment. This will usually result in NSF charges and interest increases.
Fortunately, you can skip your regular MogoMini payment twice a year under the MogoMini Service Bundle.
This means that you will not be required to pay the loan interest and applicable fees up to two times a year. The skip interval has to be between 6 months.
In addition, this offer allows you to avoid paying NSF fees on missed payments that you repay within five business days.
- Priority Funding
Do you want to access your loan faster? The MogoMini Service Bundle can also help you do so by prioritizing your loan request.
In addition to free e-Transfer funding, the MogoMini Service Bundle could be your coverage in terms of emergency funding.
- Re-Accessing Funds Waiting Period Waived
It usually takes a three-day waiting period to re-access funds after paying off your MogoMini loan. But the MogoMini Service Bundle waives the re-accessing funds waiting period to give you quick access.
To get this offer, you must prove that your account has a positive balance and the previous payment has cleared your account by presenting a bank statement.
- Default Consequences
Defaulting or missing your MogoMini loan payment could make Mogo call the loan due prematurely.
However, the MogoMini Service Bundle keeps your loan in good standing if you default on a single payment. Depending on your payment history, you will be allowed to default payment up to two times.
5. Free Credit Score Services
As noted above, all Mogo clients can access their Equifax credit scores and reports for free each month. Not only that, but Mogo also monitors its clients’ accounts and protects their identities against suspicious activities — all for free.
Although free identity protection is limited to 90 days. Unlimited free protection is accessible to those that activate a MogoCard. The MogoCard is a prepaid Visa card with no interest and annual fees and it’s issued at no cost.
Pros and Cons of MogoMini
From the above MogoMini review, we can easily identify the following pros and cons of the line of credit:
Pros of MogoMini
- Low-income threshold eligibility: You only need a $13,000 minimum annual net income to qualify for the MogoMini line of credit.
- Accessible to all: Whether you have good or bad credit, you may be eligible for MogoMini.
- Flexible repayment options: You can repay the MogoMini loan at once or make regular repayment without penalties.
- Special offers: The MogoMini Service Bundle eliminates some of the weaknesses of MogoMini such as limited loan amount, high-interest rates, e-Transfer monthly funding fees and NSF fees.
- Free credit score services: Enjoy the flexibility of MogoMini line of credit alongside free credit scores, reports, monitoring and protection services.
Cons of MogoMini
- Low maximum loan amount: MogoMini’s $3,500 maximum credit limit is low. Although one can access up to $35,000 credit under the “Level Up offer” on MogoMini Service Bundle which costs $14.99 per month.
- High-interest rates. Even with the “Level Up Offer” (of 16.9% to 46.96% APR), the MogoMini loan interest rates are among the highest in Canada.
- Monthly Email Transfer Funding fees: As noted earlier, you will be charged $19.99 per month if you opt for receiving the MogoMini line of credit through e-Transfers. This is regardless of whether you use the credit or not.
- High NSF fees: MogoMini’s $50 non-sufficient fee is also high.
- Limited access: The MogoMini line of credit is not available to the residents of Northwest Territories, Saskatchewan, Quebec and Yukon.
Who is Eligible For MogoMini?
The MogoMini line of credit is available to Canadians that meet the following eligibility:
- Live in any Canadian province/territory (excluding Northwest Territories, Saskatchewan, Quebec and Yukon)
- Reach the age of majority in your province or territory
- Have a $13,000 minimum annual net income
- Have a steady income for 30 consecutive days
- Have an active phone number, email address, and bank account
- Have a valid ID and supporting documents
That being said, meeting the above requirements doesn’t guarantee your loan approval. The approval is subject to identity and income verification, and credit review. Even at that, there’s no guarantee of approval.
How to Apply for MogoMini Line of Credit
If you don’t have a Mogo account, first you need to open one by clicking this link. After that, you will need to apply a pre-approval which takes just a few minutes.
The pre-approval application involves providing your personal information such as full name, date of birth, home address, phone number and email address. You will also be required to provide information about your:
- Debt profile
- Loan amount
Once you meet the underwriting requirements, identity and income verification and any other required documentation, you can proceed to apply for the MogoMini line of credit.
When you need any help during the application process, you can contact a Mogo loan specialist online.
As part of the loan application, you will be asked to select your funding method which could be Direct Deposit or Email Money Transfer (Interac e-Transfer).
With e-Transfer, you will receive the loan faster by paying a $19.99 fee per month. Although the fee is eliminated under the MogoMini Service Bundle.
What Happens if I Can’t Pay MogoMini Loan?
You have until the loan’s 1-year maturity to pay off the MogoMini loan principal. However, you’re expected to pay the loan interest and fees each month.
For every month that Mogo fails to deduct the interest and fees from your account due to insufficient funds, you will be charged an NSF fee of $50.
Although the NSF fee is eliminated under the MogoMini Service Bundle program which also allows you to default the regular payment up to two times.
Under normal circumstances, defaulting or missing your MogoMini loan payment could make Mogo prematurely call the loan due. Besides hurting your credit score, that could result to penalties from Mogo.
The fortunate thing is that you can negotiate your repayment terms with Mogo by calling their loan specialist at 1-800-980-6646.
From the above review, you will notice that I frown at MogoMini’s 47.42% interest rate and $3,500 maximum loan amount.
In addition to high e-Transfer funding and NSF fees, I can’t recommend the MogoMini line of credit to anyone looking for low-cost revolving loans.
As a result, I recommend the following financial institutions for the best unsecured personal line of credit in Canada.
|Maximum Credit Limit
|Steinbach Credit Union
|Affinity Credit Union
|FirstOntario Credit Union
|11.45% – 11.95%
When looking for a low-cost line of credit in Canada, you should look beyond the interest rate and maximum loan limit. You should also consider the applicable fees and eligibility. Notwithstanding, you can’t go wrong with any of the above MogoMini alternatives.
Verdict on MogoMini Review
A line of credit is one of the best alternatives to credit cards due to its low-interest rates and flexible repayment terms.
But with a high-interest line of credit like MogoMini, you could be better off with a low-interest credit card or a low-interest personal loan.
Fortunately, there are multiple alternatives to the MogoMini line of credit in Canada to consider. If you are still not sure of which loan to apply for, kindly contact your financial advisor.
That brings us to the end of this MogoMini review. For more related information, check out our blog section.
MogoMini Review FAQs
Is it hard to get a Mogo loan?
Once you meet the loan pre-approval conditions, getting a Mogo loan is easy even if your credit score is bad.
How long does it take to get money from Mogo?
It depends on the duration of the loan pre-approval. If you’re pre-approved fast, then you can proceed with the loan application and get the loan fast. The reverse could be the case if there was a delay in pre-approving you.
Also, your Mogo loan disbursement depends on the funding method you used. You will receive the loan faster with the e-Transfer funding method than with a direct bank deposit.
How do you pay off Mogo?
The loan interest and fees are automatically withdrawn from your account each month. To pay the Mogo loan principal amount, all you need is to navigate to the “Manage my active loan” section under your MogoAccount and follow the prompts. The money will be automatically withdrawn from your bank account once your request is processed.
Does Mogo hurt your credit score?
Applying for a Mogo loan, line of credit or mortgage can hurt your credit score because your application will be subjected to a hard inquiry. However, applying for loan pre-approval and checking your credit score and credit report won’t hurt your credit score on Mogo.