How Credit Works

How Credit Works

What is Credit

Every day we are asked “how credit works”. Credit is getting things first, and paying later. Credit in Canada is used for everyday purchases through to major life milestones. When it comes to large purchases, credit is essential (after all, who has a spare $400,000 in cash for a home?!).

Credit is used when you want to:

  •   Get a loan
  •   Buy a house
  •   Lease a vehicle
  •   Get a good phone plan
  •   Make travel reservations
  •   Get certain jobs
  •   Rent an apartment
  •   Pay less interest

Can Anyone Get Credit?

We all have a credit score — some good, some not so good (some are even 0!). The trick is that you need to have a good credit score in Canada to get credit.

Credit allows you to reach your goals in a more flexible way. Since building your credit score takes time and patience, now is the time to start building.

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How Credit Works

Your Credit Score is a Number that Affects You

Your credit score may look like ‘just’ a three digit number, but it 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 score! If you don’t have a history at all, or if you have a low score — it will be hard to get lenders to trust you. Our goal is to help those with no score or a low score get back into the credit game.

Learn more about our program

Have You Ever Been Denied for a Credit Card?

If you’ve been turned down for credit, don’t take it personally; 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.
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I would really like to thank Refresh Financial. My credit has built substantially and I was able to obtain a mortgage in just over a year. Unlike its competitors (very high interest rates) the Refresh Financial program is truly designed to help people. I am so thankful that you treated me with utmost respect and provided the support I needed. You are highly educated with respect to credit repair and by following your guidance I climbed out of the rut I was in. I am in a much more comfortable place financially than ever before. I have attached a picture of my house in Kelowna BC. This is proof that with guidance, discipline and perseverance anyone can achieve their goals. ”

Matthew, Peachland, BC