I got a pre-approved loan offer. Is it legitimate?

Most legitimate loan companies in Canada won't make unsolicited offers for pre-approved loans. If they do, they will specify that your approval is not guaranteed and will be based on personal information like your credit score. To be on the safe side, avoid responding to unsolicited loan offers in general—or research the company offering the loan in detail before you apply.

Should I check Reddit to see if loan companies in Canada are legit or fake?

While Reddit can be a helpful first stop for finding other customers' opinions and experiences with different loan companies in Canada, it can also be helpful to check with financial specialists to check if a lender is legit or fake. We've curated a list of legitimate loan companies in Canada based not only on customer reviews but also on information like business registrations, independent business ratings and how well a company abides by provincial and federal lending regulations.

A lender asked for my banking information. Should I give it to them?

It depends. Many legit lenders will request your bank account information to confirm your identity and deposit your loan. That said, you shouldn't hand out this information unless you trust your lender entirely and are convinced that they are legitimate.

Should I pay a lender by prepaid card before I get my loan?

No. That shows two red flags: Legitimate lenders don't collect fees upfront and won't ask for additional money by prepaid card or money transfer. Any fees you'll need to pay are typically disclosed clearly, taken from the amount you borrow and paid after your loan is approved.

What do I do if I'm receiving calls from a lender demanding payment?

Calls from businesses you don't recognize are likely a scam designed to pressure you into handing over your personal or financial information. If you're not sure, ask the caller for the full business name and licensing number and then search for contact information to call them back.