“How does Mogo determine my rate?”

So you signed up for a MogoAccount and checked your rate. It didn’t hurt your credit score, you got to see your credit score, and you’re now a MogoMember, so congrats! Now that you know your rate, you’re probably wondering “How did Mogo come up with that?”

Just like how other lenders can’t give away their secret sauce (it would make it too easy for unscrupulous fraudsters to game the system), we can’t share every detail of our algorithms. Here’s what we can tell you: our Credit Risk / Data Science team uses the latest technology and modelling techniques to determine your rate, and we use Equifax Canada as our primary source of your credit history as well as the data you provide in your credit application to work our data science magic.

Here are some commonly asked questions:

How does Mogo determine my rate?

If the rate you’ve been pre-approved is inconsistent with what you thought you would get, it might be because unlike most lenders, we use up-to-date credit information that’s constantly evolving.

Your credit profile is much more than just your credit score, and because our algorithms are real-time, your everyday activities—like spending near the limit of your credit card—could impact your Mogo rate.

Why is the rate that Mogo offers me higher than a rate that I am getting somewhere else?

TBH, it’s all about your financial health at the time of approval.

When we give you your rate, we look at a bunch of other data, too, not just your credit score, to understand your financial health. Your overall credit profile at the time of approval is crucial here, because it could’ve changed between your rate check somewhere else and your recent one at Mogo.

If you’re getting a better rate with your bank it could be because at the time of approval your credit profile was in better shape, but based on your relationship with your bank they’ve left it as is - and we’d urge you to go ahead and use the better offer of course!

If you you don’t have a better option but would like a lower rate, you can re-apply in 90 days but in the meantime, follow our tips on how to improve your credit score (don’t worry- there is no impact to your credit score to check your rate with Mogo). If you need the funds now, our Level Up program will give you access to lower rates over time with a solid payment history and an improvement on your credit history.

Why would I take a MogoMoney loan at a higher rate than my other debt?

Because you could still save a lot in interest compared to that other debt. That’s right: even with a higher interest rate, you could be paying less interest with MogoMoney.

Say you’re borrowing $10,000 and only making the minimum payments. If that’s a $10,000 MogoLiquid loan at 22.9% with a 4-year term, you’d be paying about $5,300 interest. But on $10,000 of credit card debt at 19.99% (a lower AIR!), that’s $48,000 of interest if you’re making the 2% minimum payments.

That being said, if you do have a better credit option somewhere else that truly keeps your overall cost of borrowing low, we’re all for it. Go ahead and use it! You can still keep your MogoAccount, and your offer is good for 90 days. Just in case you change your mind.

But I want a lower rate. Can I get one?

Hell yes, with our Level Up program, which rewards you with lower rates when you make your payments on time*.

If you’re impatient and want other ways to get a better MogoMoney offer... well, you’ll need to get your credit up first. Here are some tips to improve your credit score—get to work on that creditworthiness and come back in 90 days to see if you get a better rate. In the meantime, follow our email newsletter for tips on how to grow the f*ck up.


If you have more questions, email us at feedback@mogo.ca or hit us up on Facebook / Twitter! We’re pretty social animals.

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*Level Up offer is conditional on 12-month on-time payment history and a stable credit profile determined at Mogo’s sole discretion. Your “credit profile” may include, but is not limited to your credit score and external debt outstanding at the time of the Level Up review. Mogo reserves the right to make changes to the terms and conditions of the Level Up program at any time. Current product must be paid in full to take advantage of new Level Up offer.

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