How Credit Works - Refresh Financial

Good credit unlocks the door to yes!

It’s how you get access to the things you need, like:

A Mortgage


The job you want

Deposit-free utility accounts

Low financing for car leases

The best phone plans

Cash loans

A line of credit

A car loan

The lowest interest rates

Approval to rent apartments

A low-interest student line of credit

Can anyone get credit?

We all have a credit score — some good, some not so good (some are even zero!). The trick is that you need to have a good credit score in Canada to get access to credit. Credit allows you to reach your goals in a more flexible way. The trouble is, you need credit to build your credit score, but with a low credit score, no one will give you credit. It's a chicken and egg situation! Since building your credit score takes time and patience, now is the time to start building.

Your credit score is a number that affects you

Your credit score is a three digit number, that sums up your whole financial reputation. Think about it like a financial resume. This number is all about trust, and determines what type of credit you can get in Canada, from a mortgage all the way down to payday loans. Your credit score also decides what conditions (like a cosigner) and interest (high or low) you will get on any credit you apply for.

If you have a history of paying lenders on time and managing your debts responsibly, you’ll have a high credit score! If you don’t have a history at all, or if you have a low credit score — it is harder to get lenders to feel confident loaning money to you. Our goal is to help those with no credit score or a low credit score get back to bank interest rates.

Have you ever been denied for a credit card?

If you’ve been turned down for credit, don’t take it personally - even good people can have bad credit. It probably means your credit score was too low. Lenders do a lot of math to figure out the risk of not getting paid based on credit scores. Unfortunately, an awesome personality doesn’t count for much in the world of credit!

If you’ve ever been denied for credit, we can help you.

Building credit takes time

Revolving and installment credit

Revolving and installment credit are both important to your credit score. Having both on your credit report shows you can manage all kinds of credit responsibly. Here’s how they work.

Revolving credit:

  • Can be used repeatedly, once debt is paid off
  • Minimum payment varies, depending on balance owing
  • No set payment amount
  • Can repay full amount owing all at once or over time
  • Can be secured or unsecured
  • Higher interest than installment credit
  • Interest charged on unpaid balance every month
  • Example: a credit card or line of credit

Apply for the Refresh Secured Card.
No credit checks required!

Installment credit:

  • Fixed payment amounts over a set term
  • Can be secured (a car loan)
  • Can be unsecured (a cash loan)
  • Fixed borrowing amount and term
  • Paid off in regular installments
  • Easier to plan and budget for
  • Example: student loan, personal loan, car loan, mortgage

Apply for the Refresh Financial's Credit Builder Loan.

What’s the difference between secured and unsecured credit?

Credit can be offered as both secured and unsecured. Whether it’s secured or not, doesn’t actually affect your credit score. Here’s what you need to know about both.


Secured credit is credit that is given to buy something of value such as a house or a car. If you were to fail to make payments, the lender would repossess the item and be able to recoup some of their losses. It is possible for people with low credit scores to get secured credit, but it comes at high interest rates.

  • Security (collateral) can be a deposit, like cash
  • Collateral can also the item you're getting, like a home or car
  • If you don't pay (default), the lender takes your security as payment
  • Can be offered when you have poor credit, like a secured card
  • Can be hard to get, like a mortgage
  • Can be easy to get, like a secured card


Unsecured credit is credit that is given on the basis that the lender trusts you will pay it back. Your credit score indicates a history of repayments made, therefore it’s likely you will pay back the unsecured credit also. People with a low credit score will struggle to get unsecured credit.

  • Requires a good credit score
  • Have faster approvals and less paperwork
  • Can have a high-interest rate, as there is non security for lenders
  • Unsecured cash loans are harder to get than secured car loans
  • Used for cars, home renovations, education, and medical bills

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