Spring Financial Review: Is Spring Financial Legit or Scam?
If you are looking for a personal loan in Canada, you may have come across Spring Financial, an online lender that claims to offer loans from 9.99% APR and credit building programs. But is Spring Financial legit or scam? How does it work and what are the benefits and risks of borrowing from this lender? In this blog post, we will answer these questions and more, based on our research and customer reviews.
How Does Spring Financial Work?
Spring Financial is a subsidiary of Canada Drives, a company that provides auto financing and car buying services. Spring Financial was launched in 2015 to provide alternative lending solutions to Canadians who may not qualify for traditional bank loans due to poor or limited credit history.
Spring Financial offers two main products: the personal loan and the credit builder loan (also known as “The Foundation”). The personal loan is a typical unsecured loan that you can use for any purpose, such as debt consolidation, home improvement, travel, education, etc. The credit builder loan is a secured loan that helps you improve your credit score by reporting your payments to the credit bureaus. You can also access a portion of the loan as cash once you complete a financial literacy course and make a certain number of payments.
To apply for a Spring Financial loan, you need to fill out an online application form on their website or call their toll-free number. You will need to provide some personal and financial information, such as your name, address, phone number, email, income, expenses, bank account details, etc. You will also need to consent to a credit check and verify your identity and income.
Spring Financial will assess your application and determine your eligibility and loan offer. You may be approved for a personal loan, a credit builder loan, or neither. If you are approved for a personal loan, you can choose your loan amount (from $500 to $35,000), term (from 9 to 60 months), and payment frequency (weekly, biweekly, or monthly). You will also see your interest rate (from 9.99% to 46.96%), fees, and total cost of borrowing. If you agree to the loan terms, you will need to sign a loan agreement and set up a pre-authorized debit from your bank account. You can receive your funds by e-transfer as soon as the same day or the next day.
If you are approved for a credit builder loan, you will need to pay a one-time administration fee of $89 and a monthly fee of $6. The loan amount will be held in a secure trust account until you complete the program. You will need to make regular payments (from $15 to $150 per month) for 12 to 24 months, depending on your loan amount (from $1,200 to $6,000). You will also need to complete a financial literacy course that covers topics such as budgeting, saving, investing, credit, debt, etc. Once you finish the course and make a certain number of payments (usually 50% of the loan term), you can access up to 18.5% of the loan amount as cash. The rest of the loan amount will be released to you once you pay off the loan in full. Spring Financial will report your payments to the credit bureaus, which can help improve your credit score over time.
Spring Financial Review
Spring Financial is a legitimate online lender that is registered and licensed in Canada. It has an active social media presence and a customer service team that you can contact by phone, email, or live chat. It also has a high rating on Trustpilot, based on over 13,000 reviews from verified customers.
However, Spring Financial also has some drawbacks and risks that you should be aware of before applying for a loan from them. Here are some of the pros and cons of Spring Financial:
Pros
- Fast and easy application. You can apply for a Spring Financial loan online or by phone in minutes and get approved quickly. You can also receive your funds by e-transfer as soon as the same day or the next day.
- Fair or bad credit is okay. Spring Financial can consider applicants who have poor or limited credit history, as long as they meet the minimum income and bank account requirements. You may also qualify for a lower interest rate if you have a good credit score.
- No prepayment penalties. You can pay off your Spring Financial loan at any time without paying any extra fees. This can help you save on interest and get out of debt faster.
- Credit building program. If you are not approved for a personal loan, you may be offered a credit builder loan, which can help you improve your credit score by reporting your payments to the credit bureaus. You can also access some cash from the loan once you complete a financial literacy course and make a certain number of payments.
Cons
- High rates for bad credit. If you have a low credit score, you may be charged a high interest rate (up to 46.96%) and fees for your Spring Financial loan. This can make your loan very expensive and difficult to repay.
- You may be offered a credit builder loan instead of a personal loan. If you apply for a personal loan from Spring Financial, you may not get what you want. You may be approved for a credit builder loan instead, which is a secured loan that requires you to pay a fee and lock up your money in a trust account until you pay off the loan. You may not be able to access the cash you need right away.
- Customer complaints. Spring Financial has received some negative reviews and complaints from customers who were unhappy with their loan terms, customer service, fees, or credit reporting. Some customers also reported being harassed by phone calls and emails from Spring Financial or its affiliates. You can read some of the customer complaints on the Better Business Bureau or ComplaintsBoard
Is Spring Financial Legit or Scam?
Spring Financial is not a scam, but it is not a perfect lender either. It is a legitimate online lender that is registered and licensed in Canada. It has a high rating on Trustpilot, based on over 13,000 reviews from verified customers. It also offers fast and easy loans and credit building programs to Canadians who may not qualify for traditional bank loans.
However, Spring Financial also has some drawbacks and risks that you should be aware of before applying for a loan from them. You may be charged a high interest rate and fees if you have a low credit score. You may also be offered a credit builder loan instead of a personal loan, which may not suit your needs. You may also encounter some customer service issues or complaints from other customers.
Therefore, you should do your own research and compare other options before applying for a loan from Spring Financial. You should also read the loan agreement carefully and understand the terms and conditions before signing it. You should also make sure you can afford the loan payments and pay off the loan as soon as possible to avoid paying more interest and fees.
What Customers Are Saying
Here are some of the customer reviews that we found on Trustpilot, a platform that collects and verifies reviews from real customers:
- “The representatives were very polite & friendly. Plus, made me feel comfortable to discuss things with them. They explained everything to me and asked if I had any questions or concerns. They were more than happy to explain something to me if I did. Plus, told me if I have any questions later on they’re more than happy to discuss them with me. I highly recommend this company.” – Lisa
- “Customer service had an incredible amount of patience and explained all options to me in a very compassionate manner. Nicolas and Sam were amazing, thank you. I feel confident with the path that I’m on and look forward to growing my financial freedom.” – Annie Joo
- “Excellent service. Ross explained things very clearly. Not only about the services offered, but about credit scores and how to get a better score. I will definitely be back once I finish the Foundation and get my credit score back to where it needs to be.” – Anne Marie
- “Serg was very helpful and easy to deal with. They were very accommodating as to when I could meet with them which in turn I didn’t have to take any time off work. It was very convenient in that aspect.” – Roger
- “Thanks to Matthew for his awesomeness. The kindness for the assessment of my application that went through without any problem. A very considerate person and kind. God blessings more and fruitful to the institution.” – Richard
- “I might not have been able to apply for my loan at the moment, but they’ve offered to help me build my credit up so that i can get to where i need to be to land my future loan.” – Matt
- “Great care and customer service. I received a lot of feedback on how to best improve my credit and get my money working for me. Thank you!” – Lukasz
Benefits of Spring Financial
Spring Financial can offer some benefits to Canadians who are looking for a personal loan or a credit building program. Here are some of the benefits of Spring Financial:
- Fast and easy application. You can apply for a Spring Financial loan online or by phone in minutes and get approved quickly. You can also receive your funds by e-transfer as soon as the same day or the next day.
- Fair or bad credit is okay. Spring Financial can consider applicants who have poor or limited credit history, as long as they meet the minimum income and bank account requirements. You may also qualify for a lower interest rate if you have a good credit score.
- No prepayment penalties. You can pay off your Spring Financial loan at any time without paying any extra fees
Here are some frequently asked questions (FAQs) about Spring Financial that you may find helpful:
- What are the requirements to apply for a Spring Financial loan?
- To apply for a Spring Financial loan, you need to meet the following requirements:
- Be a Canadian citizen or permanent resident
- Be at least 18 years old
- Have a valid bank account
- Have a minimum monthly income of $1,200 (before taxes)
- Have a valid phone number and email address
- Consent to a credit check
- How long does it take to get approved for a Spring Financial loan?
- Spring Financial claims to offer instant approval for its loans. However, this may depend on your credit profile, income verification, and loan terms. You may also need to provide additional documents or information to complete your application. Once you are approved, you can receive your funds by e-transfer as soon as the same day or the next day.
- How much can I borrow from Spring Financial?
- Spring Financial offers personal loans from $500 to $35,000 and credit builder loans from $1,200 to $6,000. The loan amount that you can qualify for may depend on your credit score, income, expenses, and other factors. Spring Financial will determine your loan offer based on your application and credit check.
- What is the interest rate and fees for a Spring Financial loan?
- The interest rate for a Spring Financial loan ranges from 9.99% to 46.96% APR, depending on your credit score and loan terms. The fees may include an origination fee (up to 5% of the loan amount), a late payment fee ($50), a dishonoured payment fee ($50), and a monthly maintenance fee ($6) for the credit builder loan. You can see the total cost of borrowing for your loan offer before signing the loan agreement.
- How do I make payments for a Spring Financial loan?
- Spring Financial requires you to set up a pre-authorized debit from your bank account to make your loan payments. You can choose your payment frequency (weekly, biweekly, or monthly) and your payment date (from the 1st to the 28th of the month) when you sign the loan agreement. You can also make extra payments or pay off your loan early without any penalties.
- How can I contact Spring Financial?
- You can contact Spring Financial by phone, email, or live chat. Their phone number is 1-888-259-4727 and their email address is [email protected]. You can also visit their website at [www.springfinancial.ca] and click on the chat icon at the bottom right corner to start a live chat with a customer service representative. Their business hours are Monday to Friday from 6 am to 5 pm PST and Saturday from 7 am to 3 pm PST.
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