Want a credit card to build credit? Read this first! | Refresh Financial

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Want a credit card to build credit? Read this first!

credit card to build credit

If you've come across this post, it's likely you are considering getting your hands on a credit card to build credit. Great news! Credit cards are one of the best ways to build your credit score. Why? They are considered a type of revolving credit which reports to the credit bureaus.

There are several pros to using a credit card to build credit:

  1. Spending flexibility. With a credit card, you choose how much you spend each month.
  2. Learn how to manage credit. You can learn how to manage credit by making your payments on time and using a small portion of your card's credit limit.
  3. They often come with rewards.  If you have a good credit score, you can often get approved for a credit card that comes with rewards such as cash back or miles points.

However, there are also some disadvantages of using a credit card to build credit:

  1. You risk going into debt. A credit card is a great tool for building credit and teaching you how to manage credit. However, if not used properly, a credit card can do the opposite and actually bring your score down. If you're likely to be tempted to spend all of your available credit, then a credit card to build credit might not be the best idea.
  2. You may not be approved. If you've never had any credit products before, or if you have poor credit, you might not even be approved for a credit card.

What other options are there if a credit card isn't going to work for you to build credit?

Consider a secured card. Secured cards are a great alternative to a regular credit card. They work in the same way, by reporting your payments to the credit bureaus, and by taking your credit usage percentage into account, however, there is little to no risk of going into debt. Secured cards require you to make a refundable security deposit, sometimes equal to the amount of your credit limit. They are not the same as pre-paid credit cards which do not report to the credit bureaus, and therefore do not affect your credit score.

Consider a credit builder loan. If building your credit score is your top priority, there are other tools available aside from credit cards. A credit builder loan is a set-it-and-forget it program. No need to remember to pay a bill each month, no annual fees to worry about. As with a secured credit card, there is no risk of going in to debt while your build your credit score. Plus, at the end of the program you will have a nice sum of money that you can take out of your account and spend on whatever you like! You save money, while building your credit score!

So, if you are looking for a credit card to build credit, remember, there are other options available that don't involve going into debt to get a new credit score! A secured card or a credit builder loan - both available at Refresh Financial - are very effective credit building tools!

Learn more about the credit building options at Refresh - apply online and get approved in less than 20 minutes!


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    What Canadians are saying about Refresh

    I would like to thank Refresh Financial for helping me get out of a bad spot. I never thought it was possible and almost gave up on things and then I saw Refresh Financial and and gave it a try. At first I was unsure of things but to see my credit score now makes me a believer in this program.

    – Aaron A

    “It hasn’t even been a year yet, possibly only 6-7 months, and my TransUnion score has gone up over 100 points. That was only the tip of the iceberg as recently I was able to get a consolidation loan from my bank that allowed me to move forward and make things easier for me. Talk about second chances!”

    – Angelica M

    “I am now in a position where I am able to obtain credit (just bought a brand-new car and refinanced my mortgage for a fantastic rate) and it took little to no time at all. I would 100% recommend Refresh to anyone looking to rebuild credit with as little hassle as possible.”

    – Cathy M

    “I had not heard of a company doing such a thing before someone suggested it to me and it made sense. I am not very good at saving money and Refresh Financial helped me. I have dealt with them for years now and never had a problem. The customer service is excellent and fast.”

    – Chris C

    Refresh helped me regain credit following a nasty divorce, which left me with a very poor rating. They were able to remarkably help me go from a 480 to a 600 score, in just over a year. Thank you Refresh!”

    – Deb K

    I have watched my credit score jump since being with Refresh and I have already recommended it to friends and family. Thank you for helping me build my credit faster for my future and my children’s future :)”

    – Heather T

    At first I was skeptical because I wasn’t getting funds upfront and had to make payments when I really needed the money. I’ve been in the program a year now and have noticed my credit has improved drastically!”

    – Irene L

    I have been a client of Refresh Financial for approximately 3 years. Since being a client they have improved my credit immensely. Definitely recommend this company to anybody that needs help re-establishing credit.”

    – Jason I

    “I recommend this program to anyone having credit issues. At the end of the agreement, your money is refunded to you. There were times I found myself short on cash and Refresh, with permission, used a portion of my money to clear up my arrears.”

    – Margaret L

    “I would like to thank Refresh Financial for their professionalism, great customer service and for helping get back to a better financial situation. I have always been treated with the utmost respect.”

    – Martine B

    Refresh Financial is an amazing program to help people get back on their feet. I was rock bottom with nowhere to turn. My credit was beyond poor. I would recommend them to anyone. If I can do it surely anyone else can.”

    – Matthew S

    “Great company to deal with for rebuilding credit, very simple process to get started. Good service if you ever have questions.”

    – Mike L

    This business truly cares about its clients. The customer service is always quick to return calls or emails. Their online portal functions very well so as a customer you are always updated as you progress with your loan.

    – Phil J

    “Refresh Financial has made us more aware of how to take care of our financial situation and be more responsible, and making payments on time is rewarding in the end for credit. Thank You sincerely.”

    – Rocky M.

    “Refresh financial is great!!! They boosted my credit score, helped me save money and helped my husband and I buy our house;) I was not only a number to them, they stayed in touch and helped me out along the way. Answered all my questions and concerns.”

    – Sara B

    “Refresh Financial had been exceptionally good to me! I’ve just been out on medical leave and they have accommodated me with my payments without hesitation!! I was in a really bad spot with my credit and they have helped me to try and correct it!! Bravo!”

    – Shannon B

    This company has been nothing but fantastic. They have gone above and beyond to help me. This program has given me the relief and peace of mind I need. I would certainly go back to them and give them names of people who could use this.”

    – Shirley K

    The financial services products are excellent for new immigrants, low-income earners and small business owners. Loans, savings and credit building all in one solution is a perfect fit to help with financial goals and stability.”

    – Soraya H

    “After successfully going through a credit rebuilding loan, I was able to use my built-up equity to purchase a newer vehicle and I have since been approved through a financial institution for a loan.”

    – Tanya W

    “I made some poor credit choices when I turned 18 and have always had this lingering thought of how am I ever going to better my score. Since being with Refresh I have realized that I took the right step towards bettering my future.”

    – Taylor B

    “Thank you Refresh, and my relationship manager for giving me the tools for a better score with a secured card and two credit builder loans. I feel absolutely confident I’m on a better path to financial success. I am happy to be a long term client.”

    – Trevor P

    I’m so excited I’ve joined refresh! I’ve already seen a huge increase on my credit after the first month! The staff are a delight and make this so easy to understand. I strongly recommend Refresh Financial even if you have good credit this will give you a boost and you’re saving money with the reverse loan!”

    – Wayne B