You need to assess the reputation of a private lender to see how they treat their customers and the quality of their customer service. You can interview their previous customers, or look at the reviews on any of their social media pages. Another way is to ask the lender for some previous clients and ask them how their dealings with the lender went. Try to make sure that the people you interview happen to be those who recently dealt with the lender.
The Payment Options they Offer
Knowing payment options is necessary to see how the lender’s policies level against your own finances and financial plans. Some lenders ask for an initial down payment whereas others require the entire payment in the installments they divide the amount of the loan into. You need to check how the lender’s payment options compare with what you’re willing to pay and how you want to pay off your loan. Choosing the wrong payment options can end up affecting you financially and mentally. So make sure to check the payment options of each private lender you look at in any place all around Canada.
The Interest Rates they offer
Checking the interest rates is one of the most important aspects of choosing a private lender. As already mentioned, some private lenders offer bloated interest rates on the loans that they offer. Huge interest rates can lead to many problems arising for you personally. With bloated interest rates, you might ultimately end up paying double of what you would normally do for a loan. This can put all of your finances and financial plans out of order and can only affect you monthly, but in time the consequences will affect your daily life as well. So always search for the best interest rates and choose the lowest ones that appeal to you and help you pay off your loan with ease.
If you pay off your loan from a private lender without hassle, your credit history and consequently your future prospects are bound to improve.