3 Loan Scams To Avoid

Beware of Advance Fee Loans. They’re Illegal.

A lender promises to loan you money if you send payment upfront. Should you? No! After paying, you never see any money from the promised loan. These are outright scams and in Ontario, it’s illegal for a company to request payment BEFORE obtaining an actual loan. Learn about how to spot this loan scam.

Credit Repair or Savings Loans Are Very Expensive.

Plenty of companies offer what’s called a “credit repair” or “savings” loan. The problem – these are expensive, take too long and don’t necessarily build your credit better than do-it-yourself alternatives. And the “loans” they provide are also locked in, preventing you from accessing your money right away. Learn more about how credit repair or savings loans actually work.

Consumer Proposal Loans Can Put You Back In Debt.

There are companies offering loans to help you repay a consumer proposal. A consumer proposal is interest-free, so borrowing a loan on which you pay interest won’t help you eliminate debt. Learn more about why you need to crunch the numbers before borrowing to repay a proposal.