Cash Secured Loan Archives | Refresh Financial

Cash Secured Loan FAQ

Common Questions

  1. Is the Refresh Cash Secured Loan the same as a traditional loan?  

    Our Cash Secured Loans work differently than a traditional loan. Instead of receiving the loan amount up front, we put the loan amount into a secured account with a financial institution. It’s out of our hands, but not quite in your hands just yet. Then, you can start to make affordable, scheduled payments towards this secured amount. Since the loan amount is out of our hands and waiting for you, it is considered that you are repaying a loan to us, which allows us to report every payment you make to the credit bureau, raising your credit score. The payments you make also build equity against this secured loan amount. So, not only are you building a positive payment history, you are also building an additional savings account.

  2. How long until I can expect to see results on my credit score?  

    We report to the credit bureaus every month. However, as a new client, it can take up to 90 days until you see the impact of our program.

  3. I’m in bankruptcy or consumer proposal, can I sign up for the credit builder program?  

    If you are going through bankruptcy or consumer proposal in Canada, our programs are practically designed for you, as long you have enough cash to make your payments! We designed our credit builder programs so they could benefit everyone, and those that aren’t able to apply for traditional loan products are still able to get on board, and start rebuilding their credit.

  4. Do you provide services across Canada?  

    Refresh Financial provides credit builder programs across Canada, excluding Saskatchewan (but we’re working on that).

  5. Do I have to pay any upfront fees?  

    There are no out of pocket fees when you sign up. In order to service your Cash Secured Savings Loan and report to the credit bureau for you each month, there is an administration fee for each credit building program. But rather than getting you to pay it straight away, we’ve built it into your regular payments, so you’ll have paid this fee off before you know it.

  6. How are payments made?  

    Payments are taken via direct debit, so you don’t have to take time out of your busy day to make your scheduled payments. We set it all up, so you don’t have to worry – it’s all taken care of by our high-tech electronic payment system!

  7. How can I make changes to my payment information?  

    If you need to make changes to your payment information, including billing information or payment schedule, you must inform us at least 5 business days prior to the change taking effect.

  8. I would like to withdraw equity that I have built up. How long does that take?  

    It will take a minimum of 7-10 business days to process a loan equity request. Once processed, the funds will be deposited directly into your bank account. You can withdraw any equity you have built at any time, without cancelling the program.

  9. I would like to cancel my program with Refresh  

    If you would like to cancel your program with Refresh and are still within the grace-period, we can honour a cancellation with at least five business days’ notice before your first scheduled payment. If you would like to cancel your program with Refresh once the grace period has passed, you are responsible for covering your commitment fee and any interest or fees accrued from missed payments. If you have accrued equity, this amount will be returned to you.

  10. What if I have a balance owing on my account?  

    For our program to do its job and help build your credit score, it’s important that your account is in good standing, since late or missed payments can negatively affect your credit score. Maintaining an arrears balance on your account is reported as a negative on your credit report, which is the opposite of what we want to accomplish! Remember, if you need to change a payment date or adjust your banking details, please give us at least 5 business days’ notice.

  11. Can I pay off all of my Cash Secured Loan early?  

    Yes, you can repay your outstanding balance at any time, with no early payout fees. Once you’ve paid off everything owing, we send you your available funds and mark your credit builder program as paid off in full to the credit bureau. Note – Fewer payments you make = less improvement to your credit score. Each payment made on time and in full, improves your credit score, so paying out early means you won’t get the best benefit (and won’t get the highest credit score!)

  12. I got approved for a car loan, do I still need to build credit?  

    First, congratulations! Now that’s out of the way, the short answer is, you most likely still do. Car loans have collateral (security) in the form of your car. If you don’t make your payments, it’s simple — the lender will repossess the car. Because this loan is fairly risk-free for the lender, they’ll only give you small kudos for making your payments, and your credit score will not suddenly sky rocket. So if you’re serious about getting your credit in shape, our credit builder programs are your best bet.

  13. Have questions about the Secured Credit Card?  

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