Everybody knows it; it’s difficult to get any credit if your credit score is low or you’ve got no credit at all. But of course, life is filled with second chances- so is the world of credit.
You already know that one of the ways to prevent getting locked out or disqualified from taking credit or loans in the future is to use an excellent secure card. There are tons of them in the market.
The first thing you should know about the refresh secured card is that you won’t earn any reward on purchases by using it. So, if you’re looking to earn reward points or possibly cashback with this secured card, the refresh card won’t give you that- you might want to look into other secured cards if that’s your primary goal.
Nevertheless, hang around a little more to unravel the entire essence of the refresh secured card. Let’s explore some of the benefits that make this card stand out among its peers.
Benefits for Card
Everyone deserves a fresh start, especially when it comes to building your credit score and entering the good books of loans and other credit companies.
Lucky for you, that’s what the refresh secured card is about- giving people second chances to redeem their credit image. The refresh secured card dishes out second chances in the form of the benefits it offers its end-users. Keep reading.
- Zero barriers, guaranteed approval: As somebody with bad credit or no credit history at all, it is difficult for credit companies to issue you any credit card to bail you out of certain expenses you might not have the financial capacity to shoulder.
Frankly, if you eventually get a company that’ll still issue you a credit card, you’ll realize that your hands would practically be tied as they would offer you the card with alarmingly high-interest rates.
Aside from that, the terms won’t be favourable. But don’t worry, the refresh card won’t hold a grudge against you for having a bad credit score or no credit, as it doesn’t determine your creditworthiness based on your credit history.
So, if your credit score is at the rock bottom of 300, you’ve got nothing to worry about. You’ll get a refresh secured card as long as you meet the requirement and eligibility criteria. Now, you can breathe easily.
- Low fee and Interest rates: When it comes to the annual fee of this card, you don’t need to get nervous as it is affordable compared to other secure cards on the market. You’ll only be charged a total of $48.95 per annum.
Here’s a quick breakdown. You’ll start by paying an annual fee of $12.95. Then, you’ll be charged a monthly fee of $3. When you add it up, it’ll equal the total cost of $48.95.
Clearly, that’s fair compared to what other cards offer. Let’s not forget about the interest fee where it gets interesting. As a new refresh cardholder, you’re awarded a 21-day interest-free grace period.
That implies that if you can’t pay your credit card balance within the stipulated time, you’ll have the grace of a 21-day extension to pay back what you owe without paying the $17.99% interest.
- Security Deposit: Before you are issued any secure card, you’ll be required to make a deposit prior to the card sign-up. The common trend among most secure card issuers is that you’ll need to make a $500 deposit.
Without it, you automatically are not eligible. But of course, refresh financial steps in and gives you a shot at owning a secure card with as low as a $2oo deposit.
The best part is that the interest rate you’ll be charged won’t be determined by the deposit amount. With a maximum deposit of $10,000, the only thing that could be affected by your deposit amount is the credit limit you’ll get.
Guess what? Refresh financial would give back your deposit if you ever decide to terminate your relationship with them.
Details and Eligibility
As earlier stated, Refresh financial won’t carry out a credit check on you. But while Refresh Financial is interested in helping you build a better credit future, there are specific requirements that you must meet to get the coveted refresh secure card. If you wish to qualify for the card, you must;
- Be a Canadian citizen.
- Be 18 or 19, depending on the legal age in your province.
- Pay a $200 deposit- comes in handy when you default payment
- Have not applied for the refresh secured card earlier in the same month or have a refresh account already.
- Have zero debt on your refresh account if you had a previous account with refresh financial.
If you meet these criteria, the rest of the application process becomes easy. Once you are through with the prerequisites, proceed to apply for the credit card and start correcting your credit future.
At the moment, Refresh Financial provides no insurance coverage with their secured card. However, the other perks this card offers make up for this as there aren’t many cards like this one.
Refresh Credit Card FAQ
Refresh Financial Secured Card Review
The card has some great
features that can help you overcome financial setbacks and even rebuild your credit score from scratch.
In this entry, we’ll outline the main features and cost of using the Refresh Financial Secured Card. But first, we’ll present you with the Secured Card’s core functions to give you a better idea of how it works.
How Does the Refresh Financial Secured Card Work?
The Refresh Financial Secured card is very similar to regular credit cards in that you have to make your monthly payments. However, there’s one crucial difference. Namely, you need to pay an advance cash deposit to secure the credit limit on your Secured Card. Additionally, both credit bureaus can access your payments.
Perhaps the Refresh Financial Secured Card’s most prominent feature is that it doesn’t require you to have a credit history. Therefore, unlike most other credit cards, there’s no possibility of being rejected due to previous bankruptcy or no credit.
Moreover, you don’t have to pass a credit check to get approval, and you can easily meet the card’s primary criteria.
First, you need to be considered an adult in your territory or province. Second, you can’t have an existing Refresh account or card. Third, your Refresh card application must be the only such application over the past month. Finally, you can’t have any default payments on your previous Refresh account or card over the last year, and you’ll need to provide the mandatory security deposit.
Unlike some other cards with a minimum $500 deposit, the Refresh Card lets you use it for a minimum deposit of just $200. On top of that, the amount of your credit limit depends on your security deposit’s size. This means that you can increase your credit limit by adding more security deposit. The maximum amount is $10,000.
What Are the Primary Perks of Using the Refresh Financial Secured Card?
The main feature you look for in any credit card is whether the upfront cost is sufficiently low. Thankfully, the Refresh Financial Secured Card provides just that.
Namely, the purchase interest rate stands at 17.99%, accompanied by the $12.95 annual fee and a $3 monthly fee. As a result, you can use the card without being charged extortionate interest rates and fees upfront. However, the credit card could be a bit cheaper overall, given that all the interest and fees amount to $48.95 on an annual basis.
Next, the card has a 21-day interest-free grace period. This is the same as some other major competitors. However, Refresh Financial doesn’t charge you interest as soon as you complete a transaction, which isn’t the case for many credit card providers.
Low declined transaction fees are another benefit of using this card. More specifically, the fee stands at just $0.10, compared to some other providers that charge nearly $50 whenever your transactions are declined.
The card is also a great option if you’re looking to improve your credit score. This is because the activity on the card is reported to primary credit bureaus, giving them a clear picture of your transactions.
Finally, the company offers users of the card financial intelligence training. Best of all, it’s free of charge, and it will help you become more well-versed in finances in general.
What Are Some Other Fees You Can Expect with the Card?
Apart from the declined transaction fee, here are two more fee types that the card can charge you for:
- $2 inactivity fee – The company charges you $2 for every month of your credit card inactivity. Still, the fee is relatively low, and you can easily avoid it by buying items you can afford using your card. As previously mentioned, this will also help you build your credit rating.
- $5 cash advance/ATM fee – If you use your card at an ATM in Canada or elsewhere, you’ll have to pay $5. Therefore, use debit cards whenever possible.
Can the Refresh Financial Secured Card Help Me Improve My Credit Score?
Many credit card companies provide you with credit cards that can help boost your credit score. Nonetheless, credit building is one of Refresh Financial’s top priorities.
More specifically, the card has a feature that provides a clear overview of how your repayment and spending behavior is influencing your credit rating. This metric is referred to as the utilization rate and impacts a large portion of your credit score.
For instance, optimal credit building requires you to maintain the balance on your secured card under 30% of the available limit. The great thing about Refresh Financial Secured Card is that it notifies you when you reach that point. This way, you know the right moment to credit your account with some money, making sure that your credit score isn’t affected.
Are There Other Ways to Refresh Financial Customers to Boost Their Credit?
Since banks and other lending institutions determine the risk factor of lending you money using your credit score, you need to make an effort to improve it. This way, it’ll be much easier to qualify for loans and avoid being charged exorbitant interest rates.
Using your Secured Card isn’t the only way you can boost your credit score at Refresh Financial. If you become their customer, the company also offers you the chance to participate in their Credit Builder Program. This is how the process works:
- Signing up for the program – Once you’ve signed up for the program, the company sets up a secure account that’s accessible only to you. Refresh Financial also arranges cost-efficient payments under a schedule that works best according to your lifestyle.
- Make payments and improve your credit score – Each payment you make under the program comes with some interest. Due to the interest on the payments, the company can report the program to credit bureaus as an “installment loan.”
- Completing the program – Once you’ve made a sufficient number of payments and built your credit score to an adequate degree, your finances will be much healthier. You’ll be much more conscientious about making timely payments, enabling you to deal with your previous debt (e.g., student loan debt) far more efficiently, or set some money aside without denting your budget.
All in all, the Credit Builder Program lets you safely improve your credit rating and put your finances on a steady footing. You can use it in unison with your Refresh Financial Secured Card and achieve even better results.
FAQs About the Refresh Financial Secured Card
How can you access your balance and account details?
How can you increase your credit limit?
Why do you have to wait for up to a month to have your security deposit refunded before activation?
What’s the difference between card mailing and card processing time?
To sum up, the Refresh Financial Secured Card can give you a lot of headway in improving your credit score. Compared to some other secured card providers, it comes with relatively low interest rates and additional fees. Therefore, if you’re looking for an affordable solution to boosting your credit, the Refresh Financial Secured Card is a safe option.
In addition, try to pair up the card with the company’s Credit Builder Program. This way, you’ll capitalize on all the opportunities to get a higher credit score and improve your chances of landing favorable loans in the future.