Payday Loan Definition

What is a Payday Loan?

A payday loan is a short term loan designed to give individuals fast access to cash. The term “payday” comes from the source of the loan, which is usually the borrowers future paycheque.

When someone takes out a payday loan, they are commitment to repaying the loan plus charges on their next payday.

Payday loans, which, are often used as a bridge between paycheques are also known as cash advances, payday advances or pay cheque advances.

Check Your Credit First Canada

Introducing Check Your Credit First – A new destination for Canadian’s to view and understand their credit report online. At Check Your Credit First you can get fast and secure access to your Canadian credit score.

Access to your credit information is an important part of managing your finances but understanding your credit score is just as important. Check Your Credit First makes it easy to learn what your credit score means with their Credit Education Center.

Vehicle Repossession in Canada

Any Bad Credit offers a look at vehicle repossession in Canada with a definition and explanation that anyone can understand.

The World Famous Repossession

No matter whom you are or where you live in the world, you probably know what repossession is. It’s also no surprise that you’re likely to think of repossession whenever the term bad credit enters your head. This is partly because of Hollywood and partly because a repo, for most people, represents the worst type of credit and the mind tends to frame things in extremes.

Think about it like this: Whenever a filmmaker is trying to convey a characters financial trouble, they use one of two scenes: The collection call or the vehicle repossession.

For most people in Canada a vehicle repossession is just a Hollywood fantasy but for many Canadian’s it’s a real life nightmare.

Types of Bad Credit

Every type of loan is subject to repayment. This means that every type of loan can, if conditions are not met, can go into default status and be classified as bad credit.

Buying Your First Car

No matter who you are, buying or leasing a new car is a big deal. For most people buying a new car is considered a major purchase and, for many, an exciting purchase. There is however another group of consumer with a much stronger connection to the car buying experience – the first time buyer.

Bankruptcy Laws Change in Canada – Reactions are Mixed

September 2009 saw several changes to Canada’s bankruptcy laws. These “bankruptcy amendments” were first announced in August 2009 after being approved and passed by the Canadian Government.

Canada’s New Bankruptcy Laws

On September 18th 2009, several new bankruptcy laws took affect in Canada. In the interest of keeping Canadian’s up to date on important consumer credit and bankruptcy news, here is a brief break down of the changes in Canada’s bankruptcy laws:

Consumer Proposal

A consumer proposal is an alternative to bankruptcy available in Canada. It is essentially a negotiated settlement between an insolvent consumer and their creditors.

Just like debt consolidation, a consumer proposal allows a person to consolidate multiple loans into one monthly payment. For many consumers having one monthly payment is easier to manage.

TDSR and Car Loans

Many consumers fill out a car loan application already knowing the result. Some anticipate rejection or at least a little extra effort before the application is approved. Others predict instant approval. Consumers expecting rejection almost always have bad credit. In addition to self aware bad credit consumers there are also consumers that are in ‘bad credit denial’.

A bad credit customer in denial will often change their tune after receiving the bad news and ultimately admit they have credit problems. That is a very common scenario. A not so common scenario is the rejected car application for a consumer with good credit.

There are occasions where someone with strong credit can walk into a car dealership, apply for a car loan and still be denied. Although it surprises both the consumer and the car dealer, it is actually quite common. This often shocking result is caused by a lack of affordability and sometimes referred to as the Debt Service Decline.

Bankruptcy Definition

In Canada bankruptcy is a form of financial protection that both businesses and individuals can use to absolve debt and protect themselves from creditors. Filing bankruptcy in Canada is usually a last resort used to wipe out debt and start over fresh.

Once bankruptcy is complete, all of the debt included in the bankruptcy is considered absolved or wiped. The bad credit history leading up to the bankruptcy and the bankruptcy itself are not wiped and will remain on the individuals credit bureau for 7 years.