Cash Secured Loan FAQ
Common Questions
- 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.
- 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.
- 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.
- Do you provide services across Canada?
Refresh Financial provides credit builder programs across Canada, excluding Saskatchewan (but we’re working on that).
- 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.
- 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!
- 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.
- 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.
- 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.
- 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.
- 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!)
- 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.
- Have questions about the Secured Credit Card?
Get answers here: RefreshFinancial.ca/credit-card-faq
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
“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
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