It goes without saying that you have to work with a trustworthy lender if you are going to take out a loan. Availing of a loan from the wrong lender can get you into serious financial trouble and you may end up paying thousands of dollars more in excess charges.
The first step is to find the right type of lender for the loan you intend to take out. There is a wide variety of lenders ranging from banks and credit unions, to lending organizations that specialize in particular types of loans such as mortgages, car loans and even payday loans. There are even those that extend loans to borrowers with poor credit.
Once you have made a list of lenders that can meet your needs, you have to check them out. The first step is to visit their website. The site should provide full contact details for the company, including a phone number and a physical address. Try calling the number to see if a real person answers and if they are knowledgeable about the services the company offers.
You can check out their online reputation by looking for them on review sites and the sites of organizations such as the Better Business Bureau. When checking out reviews, do not give too much weight to a few bad reviews but instead look for patterns. Is there an aspect of their service that reviewers are consistently complaining about?
In addition, look at how the lender has responded to complaints. Every company will have at least a few complaints against them, but what is important is how they have addressed these. The BBB can provide details of how they have responded and if the person making the complaint was satisfied with their response. One good service that a review site can provide, however, is allowing you to compare the various features of lending organizations. You can look at the repayment terms and loan and service features to determine which ones will give you the best deal.
Also keep in mind that loan providers in Ontario must be licensed and registered. This is a particularly important factor if you are planning to get a payday loan. You can check industry organizations such as the Canadian Payday Loan Association to find lenders that are licensed.
Once you have identified at least three lenders who you think you would like to work with, you can start narrowing them down to find the one you will sign up with. Get in touch with them for a consultation, either in person or through the phone. Discuss your needs and ask them how their services can meet your requirements.
In particular, you should check out the rates they offer and the other loan terms. Make sure that the loan terms they give are the ones you will actually be charged when you sign up for the loan. You can ensure this by getting the terms down in writing to ensure that they will not increase the rates or change the terms later in the life of the loan.
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