Co-borrower – The secondary person on a loan / debt – this person is still 100% responsible for repaying the debt at any time.
Collateral – An asset pledged as security on a debt so that if the debt isn’t repaid as agreed, a lender can collect the collateral and sell it to recover any money owing on the debt.
Collection Agency – A company that recovers funds owed on a debt that’s past due.
Compound Interest – Interest earned on previously built up interest as well as the principal.
Co-signer – Someone who signs on a loan as a guarantor for the primary borrower to the application. They are 100% responsible for the debt if the primary borrower fails to repay it.
Consolidation Loan – A loan that’s used to pay out other debts.
Consumer Proposal – Under the Bankruptcy and Insolvency Act, you may make a legal proposal to your creditors to reduce the amount of your debts, extend the time you have to pay off the debt, or provide some combination of both. By law a consumer proposal can only be setup and administered by a bankruptcy trustee also known as a Licensed Insolvency Trustee. Learn more about what a consumer proposal is. See how a consumer proposal compares to other debt relief options.
Cost of Borrowing – The cost to you to borrow money, including interest, fees, and any other costs connected to the loan.
Conditional Discharge – Part of the bankruptcy process when the Court decides that people must still complete additional conditions to finish their bankruptcy process. Once the Court is satisfied that the conditions have been met, the bankruptcy is successfully discharged.
Credit – Getting goods or services without paying for them now, but with a promise to pay for them later.
Credit Bureau – A company’s licensed to collect and compile information about your financial behaviour. The information comes from a variety of credit granting sources as well as public records information. Credit Bureaus sell the information, in the form of a credit report, to those legally allowed to get it.
Credit Counselling – Professional counselling provided by organizations that help consumers find ways to repay their debt through careful budgeting and money management. Credit counselling is conducted by individuals called counsellors. The valuable services they provide are referred to by many different terms: debt counselling, credit card counselling, consumer debt advice, debt relief, debt management, credit card consolidation services, and even Christian credit counselling. Learn more about what credit counselling is.
Credit Counsellor – A trained financial professional who helps consumers find ways to repay their debt through careful budgeting and money management. They tend to be experts on strategies, methods, and repayment programs that get people’s finances back on track and get them out of debt. Between financial difficulty and bankruptcy are a lot of options. Credit counsellors specialize in helping people explore these options. Leading credit counselling service providers train their credit counsellors to high standards and ensure that they are professionally accredited. Leading non-profit credit counselling organizations like the Credit Counselling Society are accredited by Credit Counselling Canada which ensures its members adhear to the highest ethical standards.
Credit Rating – An evaluation of the likelihood of a borrower to default on a loan. Credit reporting companies provide information about your financial behaviour to lenders to help them decide whether or not to lend you money. The information may include your payment history, a list of current and past credit accounts and their balances, employment and personal information, and a history of past credit problems.
Credit Report – A credit report is created when you start to apply for credit. It’s a summary that gives information to potential lenders about the risk in extending credit and the probability of repayment. It has your personal information and lists who you’ve applied for credit with, how often you do it, how regularly you make payments, and any public records (court judgments) about you. Each lender gives you a rating depending on your “performance” with them. Equifax and TransUnion are the two largest credit reporting agencies in Canada.