Are you Canadian? This article’s specifically for our friends north of the border….
Short on cash for the holidays? If you’re searching for loans, job one is to avoid scams at all cost. Tying yourself up in a contract, legit or not, could cost you thousands if it’s with the wrong organization. Below are four tips on how you can find a reputable Canadian loan company.
Check with the Canada Business Network
The most well-known lenders to start with include financial institutions: your bank, credit union, or online peer-to-peer lending groups. I’d do a ton of homework before working with any payday loan companies. You don’t always have to start with personal lenders though. You can always inquire with lenders that work with businesses as well. Often, they will refer their business clients to a personal lender if they can’t find a suitable loan for them. The Canada Business Network is a great starting point.
Investigate the Company
Just about every company recognizes the importance of an online presence. A reputable Canadian loan company will want to ensure their customers are satisfied….and that means being able to talk to a real person. Check for a phone number and physical Canadian address online, preferably from their website. If not, you should be able to find a business listing somewhere. If you can’t, move on.
Check for Reviews and Online Comparison Sites
While you can’t always believe everything you read in reviews, you can notice a pattern. Every company will have some complaints. A reputable company will address it head on and ensure the customer is satisfied. This will be documented. You can find reviews with the Industry Canada or Better Business Bureau.
Another option of verifying reviews is to check out a few online comparison sites. There, you’ll find a company’s:
– Repayment terms
– Help & support
– Loan application information required
– Service features
– Loan features
Be cautious of any company whose information varies greatly from the others listed. For example, if one has a significantly higher application fee than the others. This could be a red flag. Also find out which companies may report to credit bureaus.
A Canadian Loan Company Must Be Licensed
Remember that any reputable Canadian loan company must be licensed. This is especially important to know if you’re going the payday loan route. Otherwise, you do not want to do business with them. You could be entering a contract that could take you for more than the legal interest rates are. Search online to verify the loan company is licensed and registered. Those registered must follow the rules of the Payday Loans Act, or else they’ll be fined heavily. Anyone concerned with their reputation is sure to be in good standing with them.
What’s the Bigger Point?
If you’re chasing holiday loans, it’s time to begin thinking about purposeful spending. Make this the last loan you ever take to duct tape your situation. Surround yourself with positive financial messages like our podcast, financial books or blogs to change your trajectory. You owe it to yourself to get out of debt!