I have friend who is an advisor in Canada and he tells me some real horror stories of people being scammed for money over there. He says there are companies set up offering bad credit loans and all they do is just rip people off. Now let me firstly say that obviously not all companies offering these loans will be immoral. I’m only going off the information from my friend. (So don’t shoot the messenger chimp!)

With all this going on I thought it would be a good idea for me to write some tips down that you need to be aware of if you are looking for bad credit loans in Canada and I guess they are also useful no matter where you live. Firstly, with bad credit loans you will be dealing with smaller companies. These are the only ones that offer high risk loans as most large companies won’t take the risk on people with bad credit. So they might also have different rules and regulations.

Points To Look Out For:

Don’t Pay Anything Upfront – If your lender is asking for any money or fees before giving you the loan then think twice. It is actually against the law for them to do this. If there are any fees then they are normally taken from the balance of the loan NOT paid in advance.

Check For Their Registration – Legitimate bad credit lenders need to be registered. If they aren’t then they might not be completely honest. You can ask to see their registration with the federal government. If they have one then this is a good sign.

Phone Them – If you find a lender online and they have a phone number, then phone it. You need to know you are dealing with a contactable company before giving them any personal details. If you cannot get an answer after a day or two, then think twice about using them.

Chimp’s Summary – I guess what you should take away from this article is to be cautious about who you are dealing with. Make sure they are genuine and a “proper” company that is registered with the government.