Alterfina – Good or Bad Canadian Lender? (2024 Review)

Key Features of Alterfina:

1. No Credit Checks: Alterfina, just like many online lenders in Canada, does not rely on your credit score to determine eligibility for a loan. Instead, they use Instant Bank Verification (IBV) technology to basically assess your ability to repay based on your current income and banking history. This makes it particularly attractive to those with bad or no credit, who might be turned down by traditional lenders (if that’s your situation).​
2. Fast Loan Approval and Funding: One of Alterfina’s key selling points is the speed at which it processes loan applications. If you submit their application and complete all necessary steps before 2:30 PM on a weekday, you can receive the funds on the same day. Otherwise, the funds typically arrive the following business day​
3. Loan Amounts and Interest Rates: Alterfina offers loans ranging from $500 to $2,500, with an APR of 18.99%. While this interest rate is relatively moderate compared to some payday lenders, the company also charges a weekly membership fee of $24.20 if there is an outstanding balance. This additional fee can make the loan costlier if not repaid quickly​.
4. Flexible Repayment Options: you typically need to repay their loans over a period of 3 to 6 months, though they have the option to make partial payments or repay the loan in full at any time. The repayment schedule offers maximum flexibility, with minimum payments tailored to the borrower’s financial capacity. However, the minimum payment cannot be less than 5% of the loan’s initial balance.​
5. Eligibility Criteria: To qualify for an Alterfina loan, borrowers must meet minimal requirements:
   • Be at least 18 years old.
   • Live in the province of Quebec.
   • Employment of at least three months at their current job.
   • Have an active Canadian bank account and earn a minimum monthly income of $1,500.
   • Not be in bankruptcy.
6. No Impact on Credit Score: Since Alterfina does not report to credit bureaus, borrowing from them will not affect your credit score, either positively or negatively. This is advantageous for those who are concerned about taking on a loan without impacting their credit report, but it also means that repaying the loan won’t help improve a bad credit score​.

Costs and Considerations:

While Alterfina provides quick and accessible loans for people with bad credit, the weekly membership fees can make these loans expensive if not paid off quickly. The combination of interest and fees could lead to a higher total cost if the loan is carried for a longer period, making it important for borrowers to evaluate their ability to repay within the agreed term to avoid accruing significant costs.

Our Review – Conclusion

To be frank, the flat 18.99% APR is very competitive in the alternative lending space. Considering that some Canadian payday loan sites charge over 300% APR, it’s refreshing to see Alterfina capping theirs at 18.99%.

In my opinion, if you want the best rates and terms to borrow money, your best move is to improve your credit score and try to qualify for a better loan from your bank or credit union. If that’s not an option for you right now, Alterfina is definitely a good alternative for quick access to funds.

For individuals with poor credit looking for a short-term loan, particularly if they need access to cash quickly, alternative lenders may be the only option available in the marketplace. Alterfina is as competitive as it gets in terms of rates.

Lastly, if you are dealing with high debt and are struggling to make ends meet, we recommend speaking to a debt consolidation company or a credit counsellor like Consolidated Credit Canada to determine the next best course of action. Borrowers should carefully consider the costs associated with the loan, including the weekly fees, and aim to repay the loan as quickly as possible to minimize expenses.