Questions About Bad Credit in Canada
What is Any Bad Credit Canada?
Any Bad Credit Canada is a free consumer credit resource & database for Canadians with questions about consumer credit, bankruptcy or bad credit financing. If you have credit problems and you’re looking for a car loan, mortgage or answers to your credit questions, AnyBadCredit.com is an excellent place to begin your research.
Our Canadian based website specializes in educating consumers about credit, past due credit, bad credit loans and bankruptcy situations in Canada. Our goal is to make it easy for Canadians to learn about consumer credit and how having bad credit can affect their ability to borrow money. Our ultimate goal is to provide Canadians with access to the information that will either lead to a positive credit rating or an opportunity to fix bad credit.
AnyBadCredit.com has a growing collection of credit, bankruptcy and financing content, including but not limited to:
- Easy to understand and detailed consumer credit, bad credit and bankruptcy definitions
- Free advice on how to fix bad credit and repair damaged credit before, during and after bankruptcy
- Direction on how to get approved for a bad credit mortgage or bad credit car loan
- Informative bad credit and bankruptcy articles written by experienced Canadians
- Detailed examples of bad credit situations such as auto loan repossession and credit card write offs
- Borrowing tips to help get approved for a bad credit auto loan or after bankruptcy car loan
- Instructions on obtaining your credit score and understanding your credit bureau
- Much much more…we are always adding new Canadian financing and credit information
Is this website really free?
Yes. Any Bad Credit Canada is a 100% free source for bad credit, bankruptcy, mortgage and auto loan discussion, tips and advice in Canada.
Why is AnyBadCredit.com free?
Charging a fee would be counterproductive to our goal, which is to help Canadians overcome credit problems, learn how to repair bad credit, understand bankruptcy law in Canada and get approved for financing.
What can Any Bad Credit Canada do for me?
Any Bad Credit Canada offers something that most schools, banks, auto lenders and parents don’t – detailed credit education.
While AnyBadCredit.com is not a substitute for professional bankruptcy, credit counseling or credit advice, it is a place where Canadian consumers and students can learn about credit, bankruptcy and auto financing.
If you have bad credit, you’re in bankruptcy, you want to rebuild your credit history or you’re looking to better your credit education, then Any Bad Credit Canada can:
- Help you understand consumer credit
- Isolate and define bad credit issues on your Canadian credit report
- Educate you on the different types of consumer credit in Canada
- Define bankruptcy in Canada and consumer proposal with real and easy to understand examples
- Share proven tips on repairing damaged credit
- Educate you on auto loans, bad credit auto loans and subprime car loans
- Provide advice on reestablishing credit after bankruptcy
- Share the secrets to getting approved for a car loan in bankruptcy, consumer proposal or after bankruptcy
If you have bad credit, you’ve filed bankruptcy in Canada, you need a car loan or you’re looking to re-establish credit after bankruptcy, Any Bad Credit Canada can help you.
Any Bad Credit Canada is designed to provide answers to your common and not so common credit questions. So if you’re looking for real answers to real Canadian credit questions, you’ve come to the right place. Visit our About Any Bad Credit page to learn even more about us.
Where are you located?
Any Bad Credit Canada proudly operates out of Ontario Canada. Because we are a Canadian website all of our bankruptcy law, bad credit information and auto loan articles are centered around Canadian credit, financing and bankruptcy law in Ontario.
For specific details on American bad credit and bankruptcy in the United States, please continue your online search.
Bad Credit Questions
What does the term consumer credit mean?
Credit is generally defined as debt incurred for the purpose of purchasing goods or services and can be granted to businesses or individuals. Consumer credit shares the same principals as credit with the main difference being that the debtor is always a consumer.
Consumer credit is usually extended from banks, financial institutes or retail stores with the intent it will be used to purchase goods or services. Some examples of consumer credit loans are listed below:
- Retail credit cards such as a Future Shop credit card or Canadian Tire credit card
- Consumer credit cards (Visa, Mastercard and American Express)
- Manufacturer auto leases (General Motors vehicle leased from GMAC / Ally)
- Bank auto loans (car loans financed through a prime, subprime or non prime auto lender)
- Mortgages and subprime mortgages
- Personal line of credit (often financed through a regular bank or credit union)
- Personal loans and private loans
- Student loans (bank, credit union or government loan)
What type of credit information can I find here?
Any Bad Credit Canada provides information on most major types of consumer credit including auto loans, bankruptcy, mortgages and credit cards.
While we do define and break down the differences between credit types and loans, we primarily focus on bad credit and bankruptcy situations involving:
- Bad credit car loans
- Bankruptcy auto loans
- After bankruptcy car loans
- Consumer proposal loans
- Bad credit mortgages
- Bankruptcy myths
- Bad credit & secured credit cards
- Bankruptcy news
- Canadian Credit reporting facts
- Bankruptcy facts
- and much much more
What is considered bad credit in Canada?
Canadian bad credit is not easily defined. In fact credit can be interpreted in so many different ways that bad credit at one financial institution might be considered good credit by another.
There are many different degrees of credit and while they are never outlined by financial institutions and can often vary, some situations are always considered bad credit.
Below are some general bad credit situations with examples:
- Late payment history reported to the credit bureau (30 days late or more on a credit card)
- Written off credit (credit card write offs)
- Mortgage foreclosure (evicted from home with mortgage in default)
- Car loan repossession (vehicle seized by creditor)
- Collections (utility bill, cell phone or cable collections reporting to your credit file)
- Personal bankruptcy
- Consumer proposal (a bankruptcy alternative in Canada)
- Credit counseling (similar to a consumer proposal)
- Pay day loans in Canada and their collections (collection from money mart etc.)
All financial institutions and banks in Canada have their own set of credit guidelines and risk limits. What Any Bad Credit Canada does is look at the most common bad credit scenarios and outline what they are and what they generally mean to you and your chances of getting approved for a loan.
How common is bad credit?
In Canada and the United States bad credit is actually very common. Recent studies show debt levels rising in Canada and other parts of the world.
You might be visiting Any Bad Credit Canada because you have credit problems or you want to learn more about credit. If you don’t have any issues with your credit then chances are you know someone that does.
Recent Canadian studies have shed some light on the growing credit problems many in Canada face. Here are some unfortunate truths about bad credit in Canada:
- Canadian household debt is at a high of $1.3 trillion
- Canadians are financing more of their day to day expenses than ever before
- 85% of Canadians have reported that they have outstanding credit card debt
- 21% of Canadians in debt say they can no longer manage their debt load
- 42% of surveyed Canadians have acknowledged that their debt is on the rise
- More than half of Canadians under 50 spend more than they make
- Canadian consumer bankruptcies were up 36% in August 2009 (compared to Aug 08)
- Overall debt is increasing year over year
- Consumer bankruptcies and consumer proposals are both up year over year
A 2007 – 2008 report by the Certified General Accountants Association of Canada is the source for most of these Canadian bad credit and debt statistics.
For more bad credit in Canada statistics check out our articles on Canadian Bad Credit Statistics and the Rise of Debt in Canada.
I don’t have any credit. How do I establish credit in Canada?
Everyone starts out with a blank credit file and no credit history. For most banks, a first time loan can be considered a person’s riskiest loan. While getting your first credit card is generally an easy task, getting approved for a car loan or other big ticket item with no credit or limited credit can be very difficult.
Without any credit experience your borrowing habits are an unknown and when it comes to lending money, banks generally don’t like what they don’t know. If you’re looking to finance a large amount such as $10,000 for an auto loan, you’re looking to commit to a significant monthly payment. Unless you’ve been able to service a monthly payment that size or make regular payments for another loan, banks have no history or credit score to base their decisions on.
So how do you get a loan if you have no credit history? Because everyone has to start somewhere, with no credit score, many banks and financial institutions offer loans tailored to young or first time borrowers.
Another option is to find a co-signor or co-applicant to join you on the loan. A common scenario is for a husband and wife to sign for each other or a parent to co-sign on their child’s first auto loan.
Here are some other examples of, easier to obtain, first time loans:
- Credit cards and secured credit cards
- Co-signor or parental co-signor loans
- Non prime or sub prime mortgages and auto loans
- Manufacturer auto leases (manufacturers are more protected with a lease)
- Money down and equity loans (large down payment lowers the banks risk)
- Recourse loans (indirect lenders can request the retailer to sign a recourse agreement)
Many loans can be negotiated or adjusted for each unique situation, so it’s important to remember that your unique situation may appear to fit into a specific category but still reach a different conclusion.
If you have limited credit, no credit or you’re a first time buyer looking for a car loan check out our article Your First Car Loan.
What is the best way to establish credit?
The best way to establish credit is to take out a loan or credit card that you can manage and be responsible with it. If you get a credit card and keep the balance low while making your payments on time, then you will slowly build a positive credit history – one payment at a time!
Should I check my credit rating or get my credit score?
The best way to repair bad credit or understand your current credit situation is to arm yourself with facts and do a credit check. Pulling a credit bureau is the one true way to know exactly where your credit file stands and what your credit score is.
Take the time to review your own Canadian credit bureau and learn how your unique credit history affects you. You can view your Canadian credit file and check your score at Check Your Credit First.
Where can I find out my credit score?
A safe, secure and reliable source for fast credit bureau access is Check Your Credit First Canada. They show you how to order a free credit report in Canada. You can also order your credit report plus credit score online, instantly so you don’t have to wait for your credit report in the mail.
Before you apply for credit, check your credit first!
Canadian Bankruptcy Questions
What exactly is bankruptcy?
In Canada bankruptcy can be defined several different ways. Because of its complexity many people don’t understand bankruptcy or worse they file unnecessary bankruptcies further hurting their credit.
A personal bankruptcy is filed when an individual becomes insolvent, which is to say they owe debt which they cannot afford to repay. By filing bankruptcy the individual is enacting law to protect themselves from their creditors and enter into a bankruptcy agreement.
Many people ask: What is the point of bankruptcy?
The role of a bankruptcy is to protect the consumer from the lenders and creditors they can no longer afford to pay. After filing bankruptcy it is illegal for creditors to contact their debtors or use collection methods to seek repayment.
Bankruptcy protecting a consumer is only part of its overall function. Bankruptcy is also designed to offer some return to the creditor. Although the creditor will not receive all the money owed to them, a bankruptcy does allow them to receive a portion of it. Bankruptcy law is meant to offer the creditor a fair return, hopefully allowing them to continue operating.
Once bankrupt the individual must provide specific financial and personal information to their assigned trustee in bankruptcy. A trustee in bankruptcy is essential a bankruptcy officer assigned with administering bankruptcies, upholding bankruptcy law and counseling their bankrupt clients.
Regular meetings with the trustee are one of several bankruptcy conditions. Another, important part of bankruptcy is the liquidation of assets and repayment process. While in a bankruptcy the bankrupt is required to make a regular (usually monthly) installment payment to their trustee. This payment is part of the agreement and standard practice.
A successful bankruptcy will last between 9 months and 21 months. Generally a bankruptcy is discharged after 9 months, however individuals that exceed surplus income limits, will be required to stay in bankruptcy for 21 months.
For a more detailed look at bankruptcy and after bankruptcy loans visit Bankrupt Auto Loans.
How do I know if I should file bankruptcy?
If you are ready to consider filing a personal bankruptcy then it’s very important you contact a certified trustee in bankruptcy that you can trust. Bankruptcy is a very serious situation that involves major personal decisions.
If you have more specific bankruptcy questions or you’re considering filing bankruptcy please seek the counsel of a qualified trustee in bankruptcy and insolvency lawyer.
I’m bankrupt and need a car loan. How do I get approved for a loan in bankruptcy?
Many people believe filing bankruptcy means you cannot obtain any more credit. They are wrong. In fact many financial institutions, banks, car dealerships and credit unions offer bankruptcy loans.
If you’re looking for a bankruptcy car loan then visit bankrupt car loans. They specialize in bankruptcy car loans and after bankruptcy car loans. They also share bankruptcy tips and bad credit definitions.
Is bankruptcy a bad thing?
Bankruptcy is often perceived as bad and although no one is ever happy to file a bankruptcy it isn’t always a bad thing. Filing a personal bankruptcy can often fix a troubling financial situation or repair damaged credit in the long run.
By freeing up household income that would otherwise go towards bad debt, bankruptcy can give someone with credit problems a second chance and free them of debt. Another positive side effect of bankruptcy is the rehabilitation aspect. Bankruptcy requires individuals to commit to counseling sessions and debt management “lessons”.
The bottom line with bankruptcy is it can be either a good or bad thing. Just like fire, it can be considered a useful tool but used poorly it can cause serious damage.
How common is bankruptcy in Canada?
Bankruptcy in Canada is quite common. Every month thousands of Canadians file a bankruptcy or consumer proposal. In recent months and years this has been trending upward. A specific example is a recent statistic showing Canadian bankruptcies for Aug 2009 up 36% over the previous year.
What is a consumer proposal?
A consumer proposal in Canada is an alternative to bankruptcy. In Canada a consumer or business can file a consumer proposal instead of a bankruptcy. The requirements for both bankruptcy and consumer proposal in Canada vary.
A consumer proposal is very similar to a bankruptcy however there are several key differences:
- A consumer proposal is longer, often lasting 5 years
- Consumer proposal payments are usually larger
- The creditor receives a much larger portion of the debt owed to them
The new Canadian bankruptcy laws that just took effect have made filing bankruptcy harder and filing a consumer proposal easier. For information and opinion on the new bankruptcy laws in Canada, read our new article Mixed Reaction’s to New Bankruptcy Laws.
Do you approve bad credit loans?
Any Bad Credit Canada does not approve auto loans or finance car loans. Instead of limiting ourselves to one part of a large spectrum of credit, we have chosen to specialize in many types of credit and narrow our specialty down to helping Canadians with bad credit.
Our goal at Any Bad Credit Canada is to provide free and wholesome information on credit, bankruptcy, auto loans and other types of bad credit affecting Canadians.
If you’re in bankruptcy looking for a car loan Bankrupt Car Loans and Bankrupt Auto Loans both offer advice and tips on getting auto loan approved.
For a more detailed discussion on financing a bad credit car loan visit our Car Loans page.
Questions About Bad Credit Mortgages
Do you approve mortgages?
No. Any Bad Credit Canada is here to provide free non biased information about bad credit, bankruptcy, auto loans and mortgages.
By not offering a mortgage product Any Bad Credit Canada can focus on keeping Canadians with credit questions up to date on the latest credit news and bankruptcy law while sharing real auto loan and mortgage advice.