loan cost comparison
With rates between $20-$23 per $100 borrowed every 2 weeks in store, Pocket Money is a smarter, cheaper alternative to bouncing a cheque, paying late fees or racking up your credit card when you need a bit of extra money for just a couple of weeks. Check out how we compare.
needs $500
toward a ring so he can finally pop the question. (Go Bob!)
Bob buys it with his:
credit card
Bob’s credit card
Amount: $500
Total cost: $1479.53*
Verdict: Ouch!
Source
*Total cost based on a $500 portion of a $2,500 credit card balance when only min. payments of 2% are made.
needs $200
to cover her cell phone bill.
Allison uses a:
cheque… which bounces
Allison’s (bounced) cheque
Amount: $200
Total cost: $82.50
Verdict: Yikes… Allison could have borrowed the same from Mogo for $46 or less and saved her credit report for getting dinged.
needs $500
to take advantage of a killer last minute vacation sale. (Lucky!)
Sara uses mogo:
Sara’s mogo Pocket-Money
Amount: $500
Total Cost: $105
Verdict: SMART COOKIE! Sara saved over $300 and used the money to splurge while away!
*Total cost based on the Ontario rate of $21 per $100 borrowed.
Q: How much does Pocket Money cost?
A: Between $20-$23 per $100 borrowed (depending where you live)
Q: How much will you borrow?
A: $100 – $1500
Q: How do Mogo rates compare to credit card rates?
A: In all honesty, it depends on how responsible you are with your credit cards. Most of us make only the minimum payments on our cards… in which case it would break down like this:
Say you already have a balance on your card of $2,000 and pay 19% interest annually. If you charge another $500 and make only the minimum payments on the new, $2,500 balance, the cost to pay off that $500 portion would be $1979.53 – that’s $1,479.53 in interest!!!
Q: How is it more expensive to bounce a cheque than to mogo?
A. Bouncing a cheque will cost you, on average, $82.50 – $42.50 in NSF fees from your bank and an additional $40 from the merchant (not to mention a little embarrassment). You could have borrowed $200 Pocket Money from a Mogo store between $40 and $46 – that’s a savings of more than 45%. Smart huh?
