Intro
You don’t want to take out an online loan from just anybody – you want to make sure that the online lender exhibits signs of reliability. In this article, we will explore 10 signs that indicate whether the lender is reliable or not.
Sign #1: Clear and Transparent Terms and Conditions
A reliable online lender is sure to offer clear and transparent terms and conditions. The terms and conditions should explain things like the cost of the loan, including any applicable interest and fees, the repayment period, and possible penalties for late or missed payments. Familiarize yourself with the terms and conditions before you borrow.
Sign #2: Licensed to Provide Services in Your Province
Make sure that the lender in question is licensed to provide services in your province. Typically, the license should be displayed on the lender’s website or shown during the lending process. Watch out for scammers – lenders who never show their license or lack a license on their website. Any lender that provides services in Canada must be registered, licensed, and regulated/compliant.
Sign #3: A Secure Application Process
Ensure that the lender you’re working with takes data privacy seriously, particularly during the online application process. This likely means utilizing encryption technology and other methodologies to protect personal data. LendProConnect utilizes advanced encryption technology to safeguard your personal data.
Sign #4: Positive Reviews
Check the online customer reviews the lender has received. If the reviews are predominantly negative, it may indicate an issue with reliability. A greater number of positive reviews indicates the likely reliability of the lender.
Sign #5: Responsive Customer Support Services
The lender’s website should provide contact information for customers who need to reach them with questions and/or requests. Their customer support services should be accessible, whether by phone, chat, or email. If the customer support service is unavailable or unresponsive, it’s a red flag and an indication that the lender may not be legitimate.
Sign #6: A Straightforward Application Process
An online lender should have a clear and straightforward application process. You should be able to follow the steps easily and understand their purpose. At LendProConnect, our application process takes place entirely online and is quick and simple, with no hidden surprises.
Sign #7: A Clear Explanation of the Cost
The lender should provide a full and transparent explanation of the cost associated with a given loan, including the applicable interest rates and fees as well as possible penalties for late or missed payments.
Sign #8: Educational Resources
Financial literacy is a big factor that affects one’s financial decision-making and outcomes. Therefore, online lenders who provide educational resources e.g. blogs are more likely to offer means to improve one’s financial literacy so that one can make better financial decisions and achieve better outcomes. Taking steps to improve financial literacy and clear communication are positive signs of reliability.
Sign #9: Data Privacy
Whenever you submit sensitive data online, you want to ensure that you’re submitting it via a secure website and that your data will be protected. Therefore, it’s important to ensure that the lender you’re working with takes steps to protect your personal data, e.g. by using secure encryption technology. This applies not just to the application process but throughout the period of service provision.
Sign #10: A Professional Website
A professional-looking, well-designed website is an important sign that the online lender is reputable and reliable as they have invested time, effort, and money into a presentable website and a smooth-running service. Take this as another sign of a prospective lender’s reliability.
Conclusion
The above 10 signs should reveal whether a given online lender is reliable or not. Need quick funds? Apply for a personal loan online via LendProConnect. We will only connect you with reputable and reliable online lenders across Canada. Additionally, you can take steps to improve your credit score by signing up for Credit Verify and monitoring your credit health automatically.
