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. So you don’t get the loan amount in your hands up front. However, when you start to make affordable, scheduled payments towards this secured amount, then we consider that you are repaying a loan to us, which allows us to report every payment you make to TransUnion and Equifax, raising your credit score. The payments you make also build equity against this secured loan amount (Equity is money that you can withdraw later).

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

    We report to TransUnion and Equifax every month. However, as a new client, it can take up to 90 days until you see a new product on your tradeline.

  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 designed for you. We created our credit building programs so they could benefit everyone, and those that aren’t able to apply for traditional loan products are still able to get onboard and start rebuilding their credit.

  4. Do you provide services across Canada?  

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

  5. Do I have to pay any upfront fees?  

    There are no upfront fees due at the time you sign up. However, in order to service your cash-secured savings loan and report to TransUnion and Equifax each month, there is an administration or commitment fee that is built into the program. So, rather than getting you to pay it straight away, we’ve built it into the early payments of your program.

  6. How are payments made?  

    We set up scheduled payments on your account. You will receive a notification every 7 days prior to your payment being taken out.

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

    If you need to adjust your billing information or payment schedule, you must inform us at least 5 business days prior to the change taking effect by calling 1-800-746-8480.  You can also do this through your Refresh dashboard.

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

    It will take up to 15 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 canceling 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 your 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 administration/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 or if I have missed payments?  

    For our program work properly, it’s important that your account in good standing; note that any 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. Also, note that if missed payments are made up within 30 days of original payment date, this won’t negatively affect your credit score. Here’s where you can make your payments.

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

    Yes, you can repay your outstanding balance at any time. Once you’ve paid off everything owing, we send you your available funds and mark your credit building program as paid off in full to both TransUnion and Equifax. However, it’s important that you are aware that the fewer payments you make means 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 on being approved for a car loan. The short answer is that you most likely still need to build your credit score. Car loans have collateral in the form of your car, so if you don't make your payments, the lender will repossess the 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. If you’re serious about getting your credit in shape, our credit building programs are your best bet.

  13. Have questions about the Secured Credit Card?  

Still have questions?

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