How To Renegotiate A Loan When Your Credit Improves
If you've improved your credit score, you may be able to renegotiate your loan rate and terms with your lender. Find out how to renegotiate your loan.
Although a healthy amount of debt can actually be good for your finances, taking on more than you can handle may hurt your creditworthiness and make it tough for you to get approved for credit products. For instance, if your credit score is within the bad range (300 – 600), you may not even be able to qualify for a regular credit card. Having no credit history at all can also lead to lower chances of approval.
Luckily, the Refresh Financial Secured Visa is a payment alternative that almost any borrower can get. In fact, if you use it responsibly, this secured card can even help you fix bad credit or build a credit history. Check out this review to learn more about the benefits and drawbacks of the Refresh Financial Secured Visa.
Refresh Financial is a credit building lender that was founded in 2013 and now serves customers all across Canada. They offer two different financial solutions that you can use to build your credit history and, when necessary, improve your bad credit score so you’ll have an easier time getting approved for new credit products in the future.
While they also provide Credit Builder Loans, one of their two most prominent products is the Refresh Financial Secured Visa, which you can apply for in 4 simple steps.
Essentially, the Refresh Financial Secured Visa works like a normal credit card, meaning you’ll have access to a specific revolving credit limit once you’ve been approved, as well as monthly debt payments to keep up with. You’ll also have the option of making minimum or partial payments when you can’t afford full balances.
However, the Refresh Financial Secured Visa is slightly different because you’ll have to pay a security deposit (equal to your desired credit limit) to be approved. As you use your credit card and make timely payments, Refresh will send your payment activity to the credit bureaus, where it will show up on your credit report.
The overall goal would be for your good payments to appear on your credit history and, in doing so, gradually increase your credit score. As soon as your payment term ends and all remaining debt balances are paid off, your deposit will be returned. You can then apply for another Refresh Financial solution or move on to other credit products.
Once you’ve obtained good credit, you should have much better chances of approval for larger, more expensive credit products, such as mortgages and car loans, along with optimal repayment term conditions and lower interest rates. Keep in mind that you must be very responsible with your payments and card to see this kind of positive outcome.
Credit Limit/Deposit Amount | $200 – $10,000 |
Interest Rate | 17.99% APR |
Fees | Mandatory Fees – Annual Fee: $12.95 – Monthly Maintenance Fee: $3.00 – Total Yearly Service Fees: $48.98 Possible Fees – Declined Transaction Fee: $0.10 – ATM Fee (Canada or Worldwide): $5.00 – Monthly Inactivity Fee: $2.00 – Cash Advance Fee: $5.00 – Over Limit Fee: $5.00 – International Transaction Fee: $3.50 – Paper Statement Fee: $2.50 – Point of Sale Transaction (International): $3.50 |
Credit Check | None |
Extra Features | – Refresh F.I.T. (Financial Intelligence Training) – Credit Education – Free credit calculator, infographics and financial advice on the Refresh Financial blog |
Now that you have a better understanding of how the Refresh Financial Secured Visa works, let’s discuss some of its key advantages, which include, but aren’t limited to:
Before you apply for the Refresh Financial Secured Visa, it’s important to consider the potential drawbacks that come with it, such as these:
Unlike other types of credit products, you don’t need amazing financial health to qualify for a Refresh Financial Secured Visa. For instance, a normal personal loan or credit card might require you to have a decent income, a high credit score, zero debt problems and, in some cases, additional security to offer, like collateral or a cosigner.
On the other hand, the Refresh Financial Secured Visa approval process is relatively simple and can be completed online in just a few minutes. All you have to do is follow these steps:
At some point during the Refresh Financial Secured Visa approval process, you may have to fill out certain financial information, such as your bank account or debit card details, which may be requested so that you can pay your security deposit.
You’ll also need these elements to surpass the card’s minimum approval requirements:
In the end, whether or not you choose to apply for either solution that Refresh Financial offers should depend on your personal and financial preferences. That said, any credit product can lead to unmanageable debt if you don’t handle your payments responsibly. In reality, the Refresh Financial Secured Visa is better for clients who:
The Refresh Financial Secured Visa could be the perfect solution for your credit building needs. For more information about Refresh Financial’s credit building products, click the button below.
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