Koodo has started offering a new way to pay for a phone over 36 months, the carrier announced in an email to iPhone in Canada on Wednesday. Eligible customers can finance select smartphones through an option called Koodo Financing powered by Glow, alongside the Koodo Tab and the carrier’s current postpaid plans.
The option is a loan from Glow Financial Services, not a balance on a Koodo bill. Qualifying shoppers can spread the cost of an eligible phone over 36 monthly instalments, plus interest, with no down payment. Shipping and taxes are still due upfront.
“We know that everyone’s financial journey looks different, and we wanted to give our customers more choice to get the phone they want, on terms that make sense for them,” said Dan Quick, Vice-President of Mobility Solutions at Telus, in a statement to iPhone in Canada. “Partnering with Glow means Koodo customers now have another great option, alongside the Koodo Tab, to spread out the cost of their device, making it easier to get the latest phone without compromising on the rest of their budget.”
That makes it a different product from the Tab. The Tab still pays off a device over 24 months, with no money down and a single Koodo bill. Glow stretches payments over 36 months, and customers get two bills: one from Koodo for service, and one from Glow for the phone. The two options are not interchangeable.
Koodo says the financing is available to new and existing customers who add an eligible line, and only when they buy an eligible device on a postpaid plan. It is not available with Bring Your Own Phone plans or prepaid service, and Koodo says it is offered when you shop online. Eligible phones show the Glow option at checkout.
Glow sets the annual percentage rate during the application. A soft credit check is used to see if you prequalify, which does not affect your credit score. If you go ahead, Glow runs a hard credit check that is recorded on your credit file. To apply, you need to meet the minimum age in your province, be a permanent resident of Canada, have valid government-issued photo ID, and have a Visa Debit or Debit Mastercard issued by a Canadian bank. Loan payments have to be made by autopay on one of those debit cards. Credit cards cannot be used to repay the loan.
Glow starts billing after Koodo confirms the phone has shipped, and the first payment is typically due about a month later. Koodo says the loan stays on its original schedule even if your Koodo service is later suspended, and that a missed Glow payment does not by itself affect your Koodo plan.
The longer term arrives as Telus, which owns Koodo and recently extended a free 1 Gbps 5G upgrade to more customers, is also asking the CRTC to let carriers finance phones for up to four years. Under today’s Wireless Code, the early cancellation fee on a subsidized phone has to fall to $0 by month 24. Glow financing is a separate loan with a third-party lender. The CRTC’s public hearing on the codes starts November 30.
Glow does not publish a single interest rate, so the monthly payment and the total cost will depend on the approved APR and the phone. Anyone comparing this with the 24-month Tab should look at both the term and the interest before checking out.
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