Fairstone is one of Canada’s oldest and largest non-bank lenders, offering personal loans and secured lending options to Canadians with fair to poor credit. But how do their loans really compare to others, and what should you watch out for? You’ll find out in this review…
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What is Fairstone?
Fairstone offers unsecured and secured personal loans, as well as home equity loans and auto financing. It caters primarily to Canadians who may not qualify for traditional bank credit and need access to medium-sized personal loans for debt consolidation, major purchases, or unexpected expenses.
Who is it For?
If you have a credit score of 580 or above and steady income, Fairstone could approve you for a personal loan—even if banks won’t. However, the APRs are significantly higher than bank loans, so they are better suited for short-term borrowing or people consolidating high-interest debts like credit cards.
Key Features
- Loan Amounts: $500 – $50,000
- Terms: 6 to 120 months
- Interest Rates: 19.99% – 39.99% APR
- Secured & Unsecured Options: Yes
- Approval Time: Same-day in many cases
Pros and Cons
| Pros | Cons |
|---|---|
| Fast approval and funding | Higher APRs than banks |
| Accepts lower credit scores | Origination and optional insurance fees |
| Available in most provinces | Potential for aggressive upselling |
How Does Fairstone Compare?
| Company | Min. Credit Score | APR Range | Loan Types |
|---|---|---|---|
| Fairstone | 580+ | 19.99% – 39.99% | Personal, Home, Secured |
| Spring Financial | 600+ | 18.99% – 29.99% | Personal Loans |
| iCASH | None | 29% – 47% | Short-Term Loans |
Fairstone Locations in Canada
Fairstone operates across almost every Canadian province and territory, with 250+ branch locations coast to coast. Whether you’re in a large metropolitan city or a smaller community, there’s a good chance you can access Fairstone services either in person or online.
Here’s a snapshot of where they’re available:
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Ontario: Toronto, Ottawa, Mississauga, London, Hamilton, Windsor, Kingston
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Quebec: Montreal, Quebec City, Laval, Gatineau, Sherbrooke
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British Columbia: Vancouver, Surrey, Victoria, Kelowna, Kamloops
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Manitoba: Winnipeg, Brandon
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Saskatchewan: Saskatoon, Regina
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Atlantic Canada: Halifax, Moncton, St. John’s, Charlottetown, Fredericton
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Territories: Online services are accessible in Yukon, Northwest Territories, and Nunavut
Even if there’s no local branch nearby, Fairstone offers a fully online application process for many of their loan products, meaning you can still apply and manage your loan remotely.
Final Verdict
Fairstone can be a solid option if you need a fast loan and don’t qualify for a bank. But its high APRs and optional insurance products can drive up the cost, so make sure you understand all the terms before signing. If you’re already struggling with debt, a nonprofit debt relief agency may be a more sustainable path forward.
Fairstone Canada FAQ (Frequently Asked Questions)
2. What types of loans does Fairstone offer? Fairstone specializes in secured and unsecured personal loans. These can be used for debt consolidation, home improvement, medical expenses, unexpected bills, and more. Loan types include:
- Unsecured personal loans: No collateral required.
- Secured personal loans: Backed by an asset such as a home (home equity).
- Retail financing: Offered through select merchants.
3. What are Fairstone’s interest rates? Interest rates typically range between 19.99% and 39.99% APR depending on creditworthiness, loan type, and province. Secured loans generally offer lower rates compared to unsecured ones.
4. What is the minimum credit score to get approved by Fairstone? There is no fixed minimum, but applicants with credit scores above 580 are more likely to be approved. That said, Fairstone does cater to borrowers with fair or even poor credit.
5. Does Fairstone do a hard credit check? Yes. A hard credit inquiry is performed when you apply, which can impact your credit score slightly. However, pre-qualification is sometimes available with a soft pull.
6. How much can I borrow from Fairstone? Loan amounts typically range from $500 to $35,000. Higher amounts are usually reserved for secured loans.
7. What are the repayment terms? Terms range from 6 to 120 months depending on the loan type and amount. Borrowers can choose a term that fits their budget.
8. Are there any prepayment penalties? Fairstone does not charge a prepayment penalty for early repayment on personal loans. However, it is always best to confirm with your specific loan agreement.
9. How fast is the loan approval process? Fairstone offers same-day approvals in many cases. After approval, funds are typically disbursed within 1–2 business days.
10. Can I manage my Fairstone loan online? Yes. Borrowers can use the Fairstone online portal to view their loan balance, make payments, download statements, and update account information.
11. Can I refinance a Fairstone loan? Yes. If you have made on-time payments and improved your credit profile, you may qualify to refinance at a lower rate or different term.
12. Is Fairstone better than payday loans? Yes. While interest rates may still be high, Fairstone offers installment loans with fixed payments and longer terms, making them significantly more manageable and less predatory than payday loans.
13. What are the risks of using Fairstone?
- High interest rates, especially for unsecured loans
- Missed payment fees
- Negative impact on credit if payments are missed
- Debt cycle if used to cover recurring expenses rather than one-time needs
14. Does Fairstone help with debt consolidation? Yes. Many borrowers use Fairstone loans to consolidate higher-interest credit card debt into a single monthly payment, potentially saving on interest over time.
15. What provinces does Fairstone operate in? Fairstone operates in all 10 provinces and offers loans both in-person (via branch locations) and online.
16. Is Fairstone safe to use? Yes. Fairstone uses encryption and secure systems for its online platform. It is a reputable lender and not a scam.
17. What happens if I miss a payment? Missing a payment could result in:
- Late fees
- Collection activity
- Negative marks on your credit report
- Increased interest charges Contact Fairstone immediately if you’re having trouble making payments. They may offer hardship programs.
18. Can I use a Fairstone loan to pay off payday loans? Yes, and it’s often a smarter financial decision. Fairstone loans have longer terms and lower APRs than payday loans, making it easier to escape the payday loan cycle.
19. How do I apply for a loan with Fairstone? You can apply:
- Online at Fairstone.ca
- By phone
- In person at a Fairstone branch Applicants must be Canadian residents, have a steady income, and provide valid ID and proof of residence.
20. Is Fairstone owned by a bank? Fairstone was previously a part of Duo Bank (formerly Walmart Canada Bank), but it is now owned by a consortium of investors led by global investment firms. It operates independently as a non-bank financial institution.
Mark Turner is a retired financial writer that now enjoys blogging about different financial topics, such as commodities, inflation, debt, retirement, alternative investments and Canadian politics.
