Key Tips To Choose An Online Canadian Lender When Wanting A Loan

It isn’t always a good experience for many Canadians when taking out a loan. A lot of people in Canada, even those who are startup owners, have financial needs that traditional banks aren’t willing to meet. Does that mean Canadians just have to struggle financially if the big banks reject them?  Fortunately, it isn’t the case anymore.

Thanks to technological advancements, there are now companies that offer online loans suited to every Canadian’s borrowing needs. Online lenders, like iCASH, provide loans that evolve and adapt as needs change.

Whether it’s your first or 24^th time to take out a loan, keep in mind the following tips when choosing an online Canadian lender to work with for the years to come:

1. Research The Lender’s Credibility

Before zeroing in on an online Canadian lender, the most important factor you have to consider is the company’s credibility. Dishonest or fake lenders exist online, and they can cheat you in so many ways. That being said, checking reviews from their past customers is essential. You need to do your homework by doing some research online. Always remember that a credible online lender in Canada will be honest with you all the way by giving you every fact you need.

2. Check On The Simplicity And Overall Convenience Of Their Loan Process

The online loan process is web-based. That means when you’re applying for a loan product, there’s no need for you to visit the lender’s office physically. It certainly saves money and time that may otherwise be spent commuting to the storefront of a lender. If an online lender requires you to visit them physically aside from filling in forms online, you definitely have to look for another loan provider.

3. Verify If The Loan Company Offers Fast Loan Approval

The approval timeframes of online loans must be short, and many online lenders actually offer fast loan approval as an extra benefit for clients. Depending on the online loan type you’re trying to apply for, it should take anywhere from a few hours up to a couple of days. Again, the application review and the funding process are all carried out online. That being said, if it takes weeks for the lender to approve and release your loan, then you’d be better checking out other options.

4. Experience The Lender’s Customer Service Firsthand

Clear communication between you and your chosen online Canadian lender is important—it’s the first sign of an excellent customer service. However, there are other aspects of customer service that an online lender has to be good at, and it’s essential that you keep an eye out on them during your first encounters with the loan provider. Note that whether the lender just wants to make money or is really interested in solving your financial woes is shown by the quality of customer service they provide.

5. Record The Loan Company’s Response Time

An online Canadian lender has to respond to your queries about the loan product you’re interested in taking. However, even if they do respond, the last thing you want is to deal with delays. Make sure that it’s easy for you to reach out to the loan company anytime you need to find out or clarify something about the loan. In a financial relationship, support is important—always keep that in mind.

Note that how long it takes for your loan amount to get into your account can also be considered as part of the lender’s response time. Check with your loan provider to find approximately how long you’ll need to wait before seeing changes in your finances. It’s especially important to do that if you’re in a hurry because of having to deal with an emergency. You may need to look elsewhere if the money takes too long to get into your bank.

6. Ask If They’re Asking For Any Collateral

Most people in Canada opt for online loans because online Canadian lenders don’t require collateral, and thar’s because most of them offer unsecured loans. Of course, it’s something that boils down to your personal preference. However, if you want everything to get sorted out fast, you’d want to choose an online company that provides unsecured loans and, thus, require no collateral at all.

7. Research The Market Interest Rates And Compare With Your Lender’s

What determines how much you’ll have to pay for your loan at the end is the interest rates. However, it doesn’t mean you just have to accept whatever interest rate the lender imposes on your loan and go for it. It’s important to see what others are offering by researching the market rates and comparing them with your lender’s own rate.

8. Check On How Transparent The Online Loan Company Is

The loan process should be transparent. An online Canadian lender shouldn’t only make transactions, payment dates, and amounts available through their website’s online interface, but also update all information from time to time.

9. Ask How Flexible The Loan Company Is In Terms Of Payment Schedule

Another thing you’ll need to know is how flexible the online lender is with your payment schedule. If you’re currently struggling to make ends meet, are they willing to put your repayment back one month?  Or, will they impose a huge fine for any late payments?  When you’re searching for an online Canadian lender, you need to be aware of these things.

Also, when you’re planning to take out a long-term loan, don’t forget to think about exit fees. You’ll want to ensure that it’s possible for you to pay off the loan all at once if you suddenly have enough money to do it. Such an action from you shouldn’t incur any penalties from the online loan company. The problem is that some online lenders in Canada will charge you more if you try to leave the deal early. That being said, don’t hesitate to ask how flexible your prospective online lender is when it comes to your repayment schedule before making any commitments.

10. Verify All Documentation That The Online Lender Will Provide

Lastly, it’s important that your prospective online Canadian lender provides clear and legal documents. Verify if these documents inform you how much you need to pay and what the loan company promises to do once you’re approved.

Conclusion

Thanks to technology, Canadians can now pay credit card or utility bills, transfer money between bank accounts, and apply and manage loans online. You’d already know the benefits of taking out a loan online if you’re adept to utilizing online services for virtually anything. The tips mentioned and discussed in this article should help you find the best online Canadian lender to help you solve your current financial problems.