“Guaranteed Approval” Scams: What to Watch For
After a decline, an offer that promises a yes can feel like relief. Pausing to check it is a smart move, not a sign of doubt.
Quick Answer
A common loan promises quick or guaranteed approval, then asks for a fee before you get the money, and the loan never arrives. The Canadian Anti-Fraud Centre says you should never send money first.
The Canadian Anti-Fraud Centre (CAFC) describes fake loan websites built to look like real lenders. You fill out an application, which collects your personal information. You're approved quickly. Then you're asked to pay a fee to "secure" the loan. Once you pay, the loan never comes.
Because the application collects personal details, CAFC warns this can also lead to identity theft and fraud.
- A request for a fee before you receive the loan. CAFC says this is illegal in most provinces.
- A guaranteed loan, even with bad credit or no credit, in exchange for a fee.
- Wording like “good credit, bad credit, apply now!”
- Instant approval.
- A request to pay by email money transfer, a money service business or a prepaid credit card. CAFC says to end all contact if this happens.
Some real secured credit cards describe approval in strong terms, but they explain their conditions up front, and the deposit you pay becomes your own credit limit, not a fee to unlock a loan. The pattern to watch for is money paid first for a loan that's promised to you.
If you're unsure, CAFC suggests contacting your provincial consumer protection agency or financial regulator to confirm a company is a real lender.
Stop contact with the company. CAFC has a page on how to report fraud, and checking your credit report can show whether anyone has used your information.
What to do now
Take these at your own pace. There's no deadline here.
- 1
Before paying anyone, check the company with your provincial consumer protection office.
- 2
If you shared personal details, look at your credit report for anything you don't recognize.
Get your free credit report - 3
Learn how a real secured card works, so a legitimate offer is easy to tell apart.
How secured cards build credit
Educational only, not financial advice.