Default
When you miss payments or break the loan agreement. A default can be recorded on your credit file and stay there for years.
A default happens when you fall behind on payments or break the terms of your loan. Lenders usually give you time and send notices first, but if the arrears are not fixed, they can record a default.
A default is reported to credit agencies like Centrix, Equifax and illion. It can stay on your file for up to five years and makes future borrowing harder and more expensive.
If you are struggling to pay, the best move is to talk to your lender early. Under the CCCFA, lenders must treat you fairly and can sometimes offer a hardship arrangement, like a payment pause or a lower amount for a while.
A past default does not lock you out for good. Many of our lenders still help people with bad credit. Get your fair rate to see your options.
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