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Phone:
+(905) 318-6953 -
Email:
support@faircash.ca -
Location:
1165 Fennell Avenue, East Hamilton, ON L8T1S3
Fair Cash Loans
Fill out our simple online application form with your personal and financial details.
Receive an approval decision within minutes of submitting your application.
Once approved, the loan amount is deposited directly into your bank account, often within one business day.
Repay the loan on your next payday or choose from our flexible repayment options to suit your budget.
Keeping track of several debts at once can become exhausting. A credit-card payment may be due this week, another card the following week, and a personal loan, overdraft or other balance may sit alongside them. Even where payments are being made on time, managing different due dates, interest rates and balances can make it difficult to determine when the debt will actually be repaid in full.
A debt consolidation loan may offer an alternative approach. Rather than managing several eligible debts separately, an applicant borrows funds through a new loan and uses the proceeds to repay multiple existing balances, thereafter making payments toward the new loan according to its agreement. FairCash helps Canadians explore potential online borrowing options from participating lenders. FairCash is not a direct lender and does not guarantee that an applicant will qualify for a consolidation loan, or that consolidation will reduce borrowing costs.
A debt consolidation loan is generally a new loan used to repay multiple existing debts. For example, an applicant might currently hold a $2,400 balance on one credit card, a $1,600 balance on another, and a $2,000 personal loan — a total of $6,000 spread across three accounts. Where an applicant qualifies for a $6,000 consolidation loan, the proceeds could potentially be used to repay those balances, with the new loan then repaid according to a single schedule. The objective is generally to make debt easier to manage; however, consolidation is financially sensible only where the applicant understands the new interest rate, applicable fees, repayment period and total cost. One payment is not automatically a less expensive payment.
The precise process depends on the lender and product, but it generally follows several basic steps.
Eligibility depends on the lender, but unsecured debts commonly considered for consolidation may include credit-card balances, existing unsecured personal-loan balances, outstanding unsecured lines of credit, persistent overdraft debt, and other qualifying unsecured obligations. Not every debt can necessarily be consolidated, and secured debts such as mortgages are treated differently.
No. These are different borrowing products intended for different situations. A payday loan is generally short-term, high-cost credit intended for a temporary cash shortage, whereas a debt consolidation loan generally carries a longer repayment period and is intended to combine eligible existing debts into a new credit arrangement. Applicants researching short-term borrowing rather than consolidating existing debt may wish to consult our Payday Loans Canada guide.
Consolidation may remain possible where an applicant's credit score is less than ideal, although the available options may be more limited. A lender may consider credit history, current income, existing debt, the applicant's debt-to-income position, payment history, employment or income stability, and overall ability to repay. Impaired credit does not automatically result in decline by every lender; however, it can affect the products, rates and terms made available. This is particularly relevant to consolidation: where the new loan carries a very high borrowing cost, moving several debts into it may not improve the applicant's financial position. The total cost should always be compared before an offer is accepted.
This phrase warrants caution. Debt consolidation normally involves a lender's assessment of whether an applicant can reasonably repay a new loan. While the assessment process can vary, "no credit check" should not be interpreted as "no financial assessment." Depending on the lender, the review may involve credit information, income verification, existing debts, banking information and an affordability assessment. Applicants researching alternative credit assessment methods may wish to consult our No Credit Check Loans Canada guide.
Consolidation may be worth exploring where an applicant holds several debts and seeks a clearer repayment structure — for example, three credit cards carrying three different balances, interest rates and payment dates. Moving eligible balances into a single loan could make the repayment schedule easier to follow. A further potential benefit arises where the new borrowing cost is lower than that of the debts being replaced; this, however, must be demonstrated by the actual figures. Consolidation should not be assumed to automatically result in lower interest, a lower total cost, a lower monthly payment, or faster debt repayment — the outcome depends entirely on the offer received.
Consolidation is not a reset of one's financial position, and certain circumstances may make the underlying problem worse:
This is among the most important points to understand about consolidation. Suppose an applicant is currently paying $250, $175 and $125 per month across several debts, totalling $550 per month. A consolidation offer providing a payment of $390 per month may appear more favourable; however, where the new loan's term is substantially longer, the total amount paid over the full term could nonetheless increase. The comparison that matters is the current total remaining cost against the new loan's total repayment — not simply $550 against $390.
Before accepting a consolidation offer, applicants are advised to review the following: the interest rate applicable to the new loan, compared with rates currently being paid; the APR, which provides a broader view of borrowing costs (reviewed via the lender's disclosure rather than an advertised rate alone); applicable fees, including origination or administration charges; whether the monthly payment comfortably fits the applicant's budget; the repayment term, in months or years; and the total repayment — the full dollar amount that will have been paid by the time the loan is completed.
These terms are sometimes confused but are not interchangeable. Debt consolidation generally involves taking on new credit and using it to combine eligible existing debts. Debt settlement involves attempting to resolve a debt for less than the amount originally owed and can carry significant consequences that should be understood carefully before entering into such an arrangement.
A consumer proposal is also distinct from a consolidation loan. A consolidation loan constitutes new borrowing, whereas a consumer proposal is a formal debt-relief process administered through a Licensed Insolvency Trustee. Where repayment through ordinary borrowing is no longer realistic, obtaining professional advice may be more appropriate than repeatedly applying for new credit.
Consolidating debt does not automatically improve a credit score. An applicant's future credit profile can depend on several factors, including whether payments are made on time, balances on other credit accounts, new credit applications, credit utilization, information reported to credit bureaus, and broader credit history. A consolidation loan should therefore be evaluated primarily on whether it renders debt more affordable and manageable, rather than as a means of achieving a particular credit score.
Where an applicant does not qualify, or an offer proves too expensive, other approaches may be available:
Before accepting a consolidation offer, applicants are encouraged to answer the following: How much debt is being consolidated? What is the current total monthly payment? What interest rates are currently being paid? What rate and APR does the new lender offer? Are there additional fees? How long will the new loan last? What is the total amount that will be repaid? Can the payment be made comfortably each month? What will be done with the credit accounts that have been paid off? This final question is significant, as clearing a credit-card balance is beneficial only where the balance is not immediately rebuilt.
FairCash is an online comparison and matching platform rather than a direct lender. An applicant completes the online request with the information required to explore available options; the request may then be connected with participating providers or lenders depending on the product and the applicant's circumstances. Where an offer is available, the applicant should review the rate, fees, repayment period and total cost, and is not required to accept an offer simply because a request was submitted. Further detail is available on our How It Works page.
Frequently Asked Questions
We've compiled a list of frequently asked questions to provide you with quick and helpful answers. If you have a question that is not addressed below
A debt consolidation loan is generally new credit used to repay multiple eligible existing debts, leaving the borrower with a single new repayment arrangement.
Potentially. Eligibility depends on the lender, income, existing debts, credit history and other financial information. Impaired credit may reduce the number of available options or affect the terms offered.
Not automatically. Consolidation generally reorganizes existing debt rather than reducing the principal owed. Whether it reduces total borrowing cost depends on the new loan's rate, fees and repayment period.
It may, although this is not guaranteed. A lower payment can result from extending the repayment period, which may increase the total cost. Applicants should compare both the monthly payment and the total repayment.
No. FairCash is not a direct lender and cannot guarantee that a participating lender or provider will offer a consolidation product.
No. Consolidation generally involves replacing eligible debts with new credit, whereas debt settlement involves attempting to resolve debt for less than the outstanding amount.
The impact depends on factors such as the credit inquiry performed, the new account opened, payment history, and how existing accounts are managed afterward. There is no single guaranteed effect for every borrower.
Compare the new loan's interest rate, fees, monthly payment, repayment term and total repayment against existing debts. A simpler payment schedule alone does not establish that the new loan is less expensive.
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