Home › Guides

Are online lenders safe? How to check before you apply

By Raj Mukherjee · October 19, 2026 · 6 min read

Applying online is now normal. Banks, credit unions and many newer lenders let you apply in minutes from your phone. Most of them are legitimate and regulated. But loan scams are also one of the most common types of fraud in Canada, and they target exactly the people who need money quickly.

The good news is that scams follow a pattern. Once you know what to look for, they’re easy to spot.

The biggest red flag: paying to get your loan

The most common loan scam in Canada works like this: you’re “approved” quickly, often regardless of your credit, and then told you need to pay a fee first. It might be called insurance, a deposit, an administration fee or proof that you can make payments. It’s often requested by e-Transfer, gift cards or cryptocurrency.

A legitimate lender doesn’t ask for money before you receive your loan. Fees, if there are any, are disclosed in your agreement and normally taken from the loan amount or added to it. If someone asks you to send money first, stop there.

Other warning signs

• “Guaranteed approval” with no questions. Real lenders ask about your income and payments, because they have to. No questions usually means no real loan.
• Pressure. “This offer expires in one hour” or repeated calls pushing you to decide.
• No physical address or licence information. Or an address that turns out to be a mailbox or someone else’s business.
• Contact only by text, WhatsApp or personal email. Especially from a free email account rather than a company domain.
• A website that copies a real lender’s name with a slightly different spelling or web address.
• Interest above 35% APR. Canada’s criminal interest rate was lowered to 35% APR in January 2025. Apart from regulated payday loans, which have their own rules, offers above that aren’t legal.

Five checks to do before you apply

1. Search the company name with the word “scam” or “reviews”. Look beyond the reviews on their own website.
2. Find the company’s full legal name and address on their website, usually at the bottom of the page or in the terms. Check that the address is real.
3. Check for a licence where your province requires one. Payday and high-cost lenders, for example, must be licensed in several provinces, including BC and Ontario. Your provincial consumer protection office lists licensed lenders.
4. Read the agreement before signing. It should show the APR, the total cost of borrowing, the payment schedule and any fees. If they won’t give you this in writing, walk away.
5. Check the Canadian Anti-Fraud Centre. Their website lists current scams, and you can report anything suspicious there.

What a legitimate online lender looks like

A real lender asks for proof of income and identity, may run a credit check with your permission, gives you a written agreement with the full cost of borrowing, and sends the money to your own bank account. You should be able to find who they are, where they are, and how to complain if something goes wrong.

If you think you’ve been targeted

Stop contact and don’t send any more money. If you’ve shared banking details, call your bank right away. Report it to the Canadian Anti-Fraud Centre and your local police. If you shared your SIN, contact Service Canada, and consider placing a fraud alert with Equifax and TransUnion.

How Meet handles this

Meet only sends applications to lenders, dealerships and mortgage agents that we’ve checked against their regulator’s register. Applying through Meet is free, we never ask you to pay a fee to get a loan, and your application only goes to the lender you agree to.

This guide is general information, not financial or legal advice. Rules, rates and lender requirements change and vary by province. Estimates from Meet aren’t a credit decision, a pre-approval or an offer of credit.