Rebuilding your credit score following insolvency - Refresh Financial

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Rebuilding your credit score following insolvency

recover from insolvency

Rebuilding your credit as soon as you can after insolvency is critical. It ensures a better, brighter financial future. Having a good credit score means access to credit products - from personal loans to car loans to mortgages - at the lowest interest rates, potentially saving you thousands in interest payments over the years. 

There are many benefits to building your credit with a custom credit building solution from Refresh Financial:

  • It’s a safe way to build your credit score: 35% of your credit score is made up of on-time credit repayments. However, when you’re coming out of insolvency, it can be next to impossible to get a loan or any form of credit. Our program lets you use your own money as security, but we still report your payments to the credit bureaus, ensuring you are building credit without the risk of going into debt. 
  • You build credit FAST: We have packages that allow you to build credit at the pace which works best for you, however, the Sprint Pack will get you to your goal the fastest. It consists of the credit builder loan and the secured card. Did you know, having a mix of credit types like this accounts for 10% of your credit score?
  • You’ll save a significant amount of money in the long-run: If your credit score is lower than 660, you can expect to pay upwards of 30% interest on any credit products you are offered (if you are offered any at all). Investing the time to build a better credit score can save you a ton of money in interest in the long-run. 

We have two credit building products, each working in a different way to build your credit, but both ensuring you won’t go into any debt to achieve your credit building goals. 

  1. Credit builder loan: 

This is a loan that you repay before gettּing access to the funds, unlike a traditional loan. This eliminates the risk of going into debt. As you make payments to your loan, funds are placed into a secured account which you can access at a later date. Your payments are reported to the credit bureaus, positively impacting your credit score.

  1. Secured Card

Our Secured Card is one of the most affordable in Canada and one of the easiest ways to build your credit, albeit a little slower than the Credit Builder Loan. The secured card is available without a credit check, but you do need to pay a deposit equal to the amount of credit you’d like. Need a card with a $500 limit? You will need to pay a $500 deposit. This ensures, once again, that you will not go into debt.  

There are two major differences between a credit builder loan and a secured card. A credit builder loan is a form of installment credit which means you borrow a certain amount of money, and you pay the whole amount back in equal installments. A secured card is revolving credit, meaning you have access to a set amount of credit, but how much you use, and therefore owe each month, changes.

We understand the challenges that you have overcome or are still overcoming during your insolvency and want to help get you back on your financial feet as quickly as possible. Put insolvency behind you and get started building your credit score today!


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