Renewal policy varies by lender but usually a grace period is offered to renewing customers to give them time to finish paying off a previous loan before new payments on their new loan begin. There are generally no additional fees to renew but please consult your lender for more information.
We work only with lenders who employ fair collection practices. When loan payments go unpaid, collection officers may, at their discretion, terminate your repayment plan and use various methods of collecting the outstanding money that is due. Often interest on the unpaid balance accrues after your payments have stopped and you may be responsible for any legal fees required to collect payments.
Repayment and your Credit Score
Canada Loan Source is to be used for short-term cash needs and is not to be used as a long-term or ongoing solution to your finances. Please understand the Implications of non-payment and how your Credit Score may be affected by taking out a loan. When you enter into a loan agreement with one of our lenders, it is expected that you repay the loan on the agreed date. Repayment will include all fees and interest in addition to the principle loan amount. The total amount will be deducted from your account using direct debit, if there are not sufficient funds to take full payment, your loan will be classified as non-payed. In this case the lender will contact you to set up immediate payment, if this is not possible they may pass your file to a third-party collection agency and the default will be reported to a credit agency. Your credit score will be negatively impacted if you do not pay back your loan on time and this will make accessing credit more difficult in the future. It is always best to borrow a smaller amount that you know you will be able to pay back on time as lenders also report repayments to the credit agencies and responsible borrowing and repayment may have a positive impact on your credit score.