Personal Finance

Mogo - 100 day free loan?

  • Last Updated:
  • Nov 10th, 2017 3:26 pm
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[OP]
Jr. Member
Mar 28, 2010
135 posts
186 upvotes
vancouver

Mogo - 100 day free loan?

I got this email from Mogo, and it seems too good to be true? Anyone try this out? Take out 10k, earn $~55 at EQ bank (or other investments as you choose), and then pay it back?

Basically a free loan if you decide to pay it back in 100 days. Rate is around 20% though if you don't...

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21 replies
Deal Addict
Jul 18, 2016
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Seems kind of unethical to burn this company by claiming you're "not happy" after 100 days, just so you can earn a few dollars in interest.

More intelligent to make use of their free credit score service and maintain your free relationship with them that way.
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May 1, 2015
212 posts
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Toronto, ON
xbournex wrote:
Nov 1st, 2017 2:27 am
I got this email from Mogo, and it seems too good to be true? Anyone try this out? Take out 10k, earn $~55 at EQ bank (or other investments as you choose), and then pay it back?

Basically a free loan if you decide to pay it back in 100 days. Rate is around 20% though if you don't...

Image
out of curiosity what is your score on mogo, since you did receive a targeted offer.
Last edited by fuzzydealhunter on Nov 1st, 2017 8:20 am, edited 1 time in total.
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bewiseman wrote:
Nov 1st, 2017 7:39 am
Seems kind of unethical to burn this company by claiming you're "not happy" after 100 days, just so you can earn a few dollars in interest.

More intelligent to make use of their free credit score service and maintain your free relationship with them that way.
If this is unethical, then so is paying balance transfers before their intro rate expires. Sure, the banks get to keep their fees, but that doesn't make it a good investment for them. It's a loss leader. Same concept here.
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It is entirely different. In one case, you're simply paying the loan back early, while paying any relevant interest and fees. In the other case, you are bold face lying about being unhappy with the loan when in fact you're thrilled with it because you collected some interest. In addition, they get nothing, losing in opportunity cost and also in losing fees and interest.

I'm amazed I need to explain this ....
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bewiseman wrote:
Nov 1st, 2017 12:47 pm
It is entirely different. In one case, you're simply paying the loan back early, while paying any relevant interest and fees. In the other case, you are bold face lying about being unhappy with the loan when in fact you're thrilled with it because you collected some interest. In addition, they get nothing, losing in opportunity cost and also in losing fees and interest.

I'm amazed I need to explain this ....
I'm amazed I need to explain the concept of a loss leader.

Yes, it is an opportunity cost (at face value). That's exactly what collecting a measly 1% for a 12-month no-interest BT is, as well. Not entirely different, or very different at all, actually. The fact that some customers will incur this cost, but a number of others will recoup it by continuing to use the product or buying others, is the whole point. If being a beneficiary of this model is against your moral code, then you should really stop accepting those offers from CT and MBNA, for a start.
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Jan 27, 2004
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bewiseman wrote:
Nov 1st, 2017 12:47 pm
It is entirely different. In one case, you're simply paying the loan back early, while paying any relevant interest and fees. In the other case, you are bold face lying about being unhappy with the loan when in fact you're thrilled with it because you collected some interest. In addition, they get nothing, losing in opportunity cost and also in losing fees and interest.

I'm amazed I need to explain this ....
Sometimes i go to the grocery store just to buy the one item thats 80% off. Like those aaa rib eye steaks $5.99/lb when your lucky.

Just saying mate :lol:
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UrbanPoet wrote:
Nov 1st, 2017 8:11 pm
Sometimes i go to the grocery store just to buy the one item thats 80% off. Like those aaa rib eye steaks $5.99/lb when your lucky.

Just saying mate :lol:
I think the part that is being missed is the BOLD FACED LYING part. The only way the OP could get out of the loan would be if he BOLD FACED LIED Smiling Face With Open MouthSmiling Face With Open Mouth

You aren't lying if you only go to the grocery store to exploit a good deal.
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bewiseman wrote:
Nov 1st, 2017 8:14 pm
I think the part that is being missed is the BOLD FACED LYING part. The only way the OP could get out of the loan would be if he BOLD FACED LIED Smiling Face With Open MouthSmiling Face With Open Mouth

You aren't lying if you only go to the grocery store to exploit a good deal.
Ohh i missed that part. I thought it was actually a promotional interest rate. Not. Satisfaction type of guarantee.

I guess theres free rentals at most stores too. ;) refunds! They never ask why. My returns are legit ones and i still feel bad bc its a pretty generous policy if i really dislike an item of poor quAlity.
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UrbanPoet wrote:
Nov 1st, 2017 8:48 pm
Ohh i missed that part. I thought it was actually a promotional interest rate. Not. Satisfaction type of guarantee.

I guess theres free rentals at most stores too. ;) refunds! They never ask why. My returns are legit ones and i still feel bad bc its a pretty generous policy if i really dislike an item of poor quAlity.
Pretty sure "I don't want to pay 20%" is a legitimate reason, too. Winking Face As legitimate as similar excuses when canceling a free trial or closing a FYF card at month 12. These companies know the drill.

It's one thing to have a problem with this, but I can't respect the hypocrisy of this objection coming from someone who routinely takes advantage of similar setups.

The real caveat here is that this whole Mogo loan business is pretty sketchy. They're targeting the payday loan crowd, and these "free loan" deals are pretty common there. It's usually not as simple as it sounds.
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nmclean wrote:
Nov 1st, 2017 10:24 pm
Pretty sure "I don't want to pay 20%" is a legitimate reason, too. Winking Face As legitimate as similar excuses when canceling a free trial or closing a FYF card at month 12. These companies know the drill.

It's one thing to have a problem with this, but I can't respect the hypocrisy of this objection coming from someone who routinely takes advantage of similar setups.

The real caveat here is that this whole Mogo loan business is pretty sketchy. They're targeting the payday loan crowd, and these "free loan" deals are pretty common there. It's usually not as simple as it sounds.
After all the justification you provided above, now you call Mogo sketchy for offering a loan that is high interest that people are free to not take out? The irony. LOL.
[OP]
Jr. Member
Mar 28, 2010
135 posts
186 upvotes
vancouver
fuzzydealhunter wrote:
Nov 1st, 2017 8:20 am
out of curiosity what is your score on mogo, since you did receive a targeted offer.
It's the same on Equifax. Went from 670 to 650 after getting on a contract on telus. I was more interested with mogo's prepaid credit card.
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nmclean wrote:
Nov 1st, 2017 10:24 pm
Pretty sure "I don't want to pay 20%" is a legitimate reason, too.
Really? Then why did you enter the agreement in the first place? Did you "overlook" the part where it said 20%. Oh yes, I forgot, you want to sock the money in a high interest account for 100 days, and then go and cry that the 20% is too high. Quit your BS!
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Wow. If you haven't recognized the irony of those statements by now, I don't know what more I can do for you. Smiling Face With Open Mouth And Smiling Eyes

@kenchau I take it you're not familiar with either Mogo, the payday loan industry, or both. I'm literally saying "buyer beware" because this kind of deal is common in this space, and rarely as good as it sounds.
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nmclean wrote:
Nov 2nd, 2017 9:16 am
@kenchau I take it you're not familiar with either Mogo, the payday loan industry, or both. I'm literally saying "buyer beware" because this kind of deal is common in this space, and rarely as good as it sounds.
I'm actually very familiar with Mogo, as I use it for the free credit score monitoring. The offers are quite clearly presented. This offer is not any different than balance transfer offers that you refer to that are offered by most banking institutions on credit cards (i.e. don't pay the balance off in time, or the monthly minimum interest, then your rate jumps from 0% to double digits).

While at the same time, Mogo also offers 5-year variable mortgages at 2.35% or 5-year fixed mortgages at 2.89%. Probably not the lowest in the industry, but certainly in line and competitive with the big banks. Hardly just a "pay-day loan" shop.

Let's not absolve these "victims" of all responsibility and paint all these institutions like they held a gun to people's heads to take the loans out or something.

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