Koodo launches 36-month phone financing through Glow

Koodo has launched 36-month phone financing, but it runs through a third-party lender instead of Koodo itself. The new option, called Koodo Financing powered by Glow, is a loan from Glow Financial Services. It appears next to the existing Koodo Tab when customers pick a phone on Koodo’s website. Telus owns Koodo.

The loan spreads the cost of an eligible phone over 36 monthly payments with no down payment. The APR starts as low as 0.99 per cent, depending on a credit check, and Glow sets the rate when you apply. Shipping of $25 and taxes on the full phone price are still due upfront. Glow does not publish a single rate, so the monthly payment and total cost will depend on the approved APR and the phone.

Koodo says the financing is for new and existing customers who add an eligible line, and only when they buy an eligible phone online on a postpaid plan. It is not available with Bring Your Own Phone or prepaid service. Applicants must meet the minimum age in their province, be a permanent resident of Canada, have government-issued photo ID, and have a Visa Debit or Debit Mastercard from a Canadian bank. Payments are made by autopay on that debit card, and credit cards cannot be used. A soft credit check shows whether you prequalify. If you go ahead, Glow runs a hard check that is recorded on your credit file.

The Tab still pays off a phone over 24 months with no money down and a single Koodo bill. Glow means two bills, one from Koodo for service and one from Glow for the phone. The loan schedule stays the same if Koodo service is later suspended, and a missed Glow payment does not by itself affect a Koodo plan, according to Koodo’s support page. Koodo did not say whether customers can keep financing a phone if they cancel wireless service, or why a Koodo plan is required to use the financing.

The 36-month term stands out because the CRTC, Canada’s telecom regulator, ruled several years ago that longer financing terms broke the Wireless Code when other carriers offered them. Koodo told MobileSyrup that because Glow handles the financing, the terms can go beyond 24 months. Telus is also asking the CRTC to let carriers finance phones for up to four years. The CRTC’s public hearing on the codes starts November 30.