If you have bad credit or no credit at all, it may be difficult to get approved for credit products, which is precisely what’s needed to build a positive credit profile. Luckily, there are credit-building products available that are easy for anyone to access.
Spring Financial’s Foundation Program was designed specifically for Canadians with bad or no credit who need a simple tool to help them establish a healthy credit score.
Our Verdict
| Who Is The Foundation Program Best For? | Best for consumers who: – Need to build or improve their credit score – Need some encouragement to put money away – Can’t qualify for other credit-building products |
| What We Like About The Foundation Program | – Build good credit – Save up to $750 – Easy to qualify for |
| What We Don’t Like About The Foundation Program | – No upfront funds – Not available everywhere |
What Is The Foundation Program?
Spring Financial’s Foundation Program is a credit-building program designed to help consumers build and improve their credit scores. With a 100% approval rate, this credit-building program is accessible to Canadians of all credit types.
Within 12 months, the Foundation Program can help you build a good credit score and save up to $750. You’ll also gain access to your Equifax credit score for free.
How Does The Foundation Program Work?
The Foundation Program is unique in that it doesn’t provide money upfront. Instead, it works somewhat like a subscription.
Build Good Credit
Each of the payments you make is reported to the credit bureaus, Equifax and TransUnion. In turn, this helps you build a positive payment history which can help improve your credit score. You’ll also have free access to your Equifax credit score to help you keep track of your progress every month.
Save
A large share of your payments is automatically saved for you. The funds are held in a secured account throughout the term, after which you’ll have access to the money saved. After 12 months of payments, you’ll have saved $750, which will be available to you.
Note. You can cancel or request your savings at any time, as long as there is no outstanding balance.
Qualify For More Money
When you successfully complete The Foundation, you’ll not only have saved $750, but you’ll be automatically guaranteed the Evergreen Loan. This is a $1,500 cash advance that can be used for a variety of purposes.
Qualifying With Spring Financial
Unlike traditional loan types, there are no credit or income requirements to qualify for The Foundation. Eligibility criteria are as follows:
- Have an active bank account
- Have a valid government-issued photo ID
- Live in one of the provinces that The Foundation is available in (not offered in Saskatchewan or New Brunswick)
How To Apply For The Foundation Program
Applying for Spring Financial’s Foundation Program is a simple and straightforward process. Just follow these steps:
Step 1: Sign Up
To sign up with Spring Financial, simply enter your name and email address.
Step 2: Submit Required Documents
You’ll need to provide a valid government-issued ID and complete the online banking verification process. This allows Spring Financial to verify your identity and your banking information.
Step 3: Start Making Payments
The standard payment is roughly $66 bi-weekly. Payments are reported to the credit bureaus. A large portion of your payments is set aside in your secure savings account, which you can request access to whenever you want.
What We Like About The Foundation
There are several perks that come with The Foundation:
- Build Good Credit. Every payment you make is reported to the credit bureaus, which helps you build a positive payment history. This, in turn, can help increase your credit score.
- Saving Money. A large portion of your payments is saved in a secure account on your behalf. This acts somewhat like a forced savings plan, which can be especially useful if you have trouble committing to putting money aside every month.
- Easy To Qualify For. The Foundation is available to anyone who may not be able to qualify for traditional loans because of bad credit.
What We Think You Should Watch Out For
There are a couple of drawbacks that you should consider before applying for The Foundation:
- No Upfront Funds. Unlike a traditional loan, you don’t receive a large lump sum of money upfront.
- Not Available Everywhere. The Foundation is not available to residents of Saskatchewan and New Brunswick.
Is The Foundation Safe?
Yes, The Foundation is considered safe. The savings portion of your payments is held in a secure account. Spring Financial is a legitimate lender with a good reputation that follows required financial regulations to ensure the security of your funds.
How Does The Foundation Compare To KOHO And Nyble?
The Foundation Program is a unique credit-building product, but there are a couple of similar products available to Canadians, including KOHO and Nyble. Let’s compare Spring Financial’s Foundation Program to these other products to help you decide which one suits you
| The Foundation | KOHO | Nyble | |
| Product | Credit-building program | Credit-building line of credit | Credit-building line of credit |
| Credit Check Required? | No | No | No |
| Credit Reporting | – Reported to both Equifax and TransUnion – Reported as an installment tradeline | – Reported to Equifax – Reported as a revolving tradeline | – Reported to Equifax – Reported as a revolving tradeline |
| Cost | ~66$/biweekly (a large share is saved for you) | $5 – $10/month | $11.99/month |
| Benefits | – You save $750 – Guaranteed access to the $1,500 Evergreen loan | – Offers 3 credit building options | – Access up to $250 from your credit line – No interest |
Final Thoughts
The Foundation Program from Spring Financial is a great tool for those with bad credit who are looking for a simple yet effective way to improve their credit. It’s also a handy tool to help encourage savings. Just keep in mind that you won’t have access to a lump sum of money upfront, which may not be ideal if you need immediate cash.
