LendCare Canada Review: Should You Get a Loan or Financing With Them?

What is LendCare?

LendCare works directly with merchants to provide installment loans to consumers at the time of purchase. Instead of paying the full cost upfront, customers can spread payments over several months or years, depending on the agreement.

Who is it For?

LendCare is ideal for Canadians who need to finance an unexpected or high-cost purchase and may not qualify for traditional bank loans. However, approval depends on your creditworthiness, and the interest rates can vary significantly.

Key Features

• Loan Amounts: Varies by merchant, typically between $500 – $15,000+
• Terms: 12 to 60 months
• Interest Rates: Can range from 9.99% to 29.99% APR
• Credit Check: Yes, soft or hard pull depending on the loan
• Types of Financing: Healthcare, home improvements, auto repairs, powersports, and more

Pros and Cons

How Does LendCare Compare?

When to Avoid LendCare

If you’re already struggling with credit card debt or can’t realistically manage new monthly payments, taking on a new loan through LendCare could make things worse. These types of installment loans are best suited for short-term financing needs—not long-term debt relief.

Final Verdict

LendCare can be a convenient option if you need to finance a purchase and can repay the loan on time. Just be cautious of the interest rates and make sure you’re not using it to cover essential expenses. For those already overwhelmed with debt, nonprofit counseling may be a better first step.

💬 LendCare Canada – FAQ (Frequently Asked Questions)

1. Is LendCare a legitimate lender in Canada?
Yes, LendCare is a legitimate (albeit expensive) financing company based in Canada. It’s a subsidiary of Fairstone Bank and is licensed to operate across Ontario, BC, Alberta, Saskatchewan, Manitoba and other provinces, offering point-of-sale financing in sectors like healthcare, auto, home improvement, and powersports.

2. Does LendCare require good credit to be approved?
Not necessarily. LC caters to people with bad or inexistent credit, simlarly to other alternative lenders such as Spring, Journey Capital or Merchant Growth. Approval depends on the merchant, the loan product, and your financial profile. Some LendCare loans are available to borrowers with fair credit, but higher-risk applicants may be subject to steeper interest rates or require a co-signer.

3. Can I apply for a LendCare loan directly as a consumer?
No. You can’t apply directly on their website. LendCare works with partner merchants (like dental clinics, gyms, or auto repair shops) who submit the application on your behalf at the point of sale.

4. Is there a prepayment penalty if I pay off my LendCare loan early?
In most cases, no—LendCare does not charge a penalty for early repayment. However, it’s always best to double-check the terms of your specific agreement, as they can vary by merchant. Ask them.

5. How fast is the approval process with LendCare?
They’re known for their speed. Approval is typically same-day or within minutes at the point of sale, assuming all documentation is in order. The speed makes it appealing for unexpected purchases like urgent dental work or car repairs.

6. What are the risks of using LendCare?

• High interest rates (especially for borrowers with subprime credit)

• Missed payment penalties that could affect your credit score

• High federal interest cap on consumer loans in Canada. As of January 1, 2025, the Criminal Code of Canada has been amended to lower the criminal interest rate cap from an effective annual rate (EAR) of 60% to an annual percentage rate (APR) of 35%, which is still quite high. This change means that charging interest rates exceeding 35% APR on consumer loans is now considered a criminal offense, subject to certain exceptions.

• Debt stacking if used on top of existing credit card debt

7. Is LendCare better than using a credit card or Buy Now Pay Later app?
It depends on your situation:

• Credit cards may have higher or lower interest depending on your provider, but offer more flexibility.

• BNPL apps (like Afterpay or Klarna) are interest-free if paid on time, but often have lower purchase limits and fewer protections.

• LendCare can finance bigger-ticket items but might cost more over time unless you get a competitive rate.

8. Can I use LendCare to refinance existing debt?
No. LendCare loans are strictly point-of-sale financing—meaning they are used at the time of purchase from a LendCare merchant partner. They are not intended for refinancing or consolidating existing debt.

9. What happens if I miss a payment?
Missing a payment can trigger late fees, increase your interest charges, and may be reported to credit bureaus. This can hurt your credit score. Always contact your LendCare service provider immediately if you anticipate a payment issue.

10. Can I track and manage my LendCare loan online?
Yes. Borrowers are typically given access to an online account portal where they can view their balance, check their repayment schedule, and make payments.

11. Is LendCare regulated in Canada?
LendCare falls under the financial regulations set out by provincial consumer protection agencies and the Office of the Superintendent of Financial Institutions (OSFI) through its parent company, Fairstone Bank. That said, consumer protections vary by province.

12. What should I consider before using LendCare?
Ask yourself:

• Is the purchase essential?

• Can I afford the monthly payments for the full term?

• Am I being offered a fair rate compared to my credit score?

• Have I explored nonprofit debt solutions first if I’m already carrying debt?