How does a secured credit savings loan help build my credit?

Learn how you can build up your savings and repair your credit with a secured credit savings loan. 


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If you want to build up your credit while saving money for the future, you might want to think about a secured credit savings loan. These loans (also known as credit-builder loans) report all of your on-time payments to the credit bureau to help improve your credit.

You’ll also be able to build up your savings because you won’t get access to the funds you borrow until they’re fully paid off. This means that you can re-invest or spend your funds at the end of your term without having to worry about resolving any unpaid debt.

Refresh Financial Credit Builder Loan

Refresh Financial Credit Builder Loan


19.99 % APR


  • Build up your credit score
  • Competitive interest rates
  • High maximum borrowing limit

Refresh Financial Credit Builder Loan

Apply today for a credit builder loan and work towards improving your financial health. Refresh Financial do not provide loan funds upfront. Instead, funds are placed into a secured account to be accessed for later use.

  • APR: 19.99%
  • Loan amounts: $1,250-$25,000
  • Loan terms: 3-5 years
  • Fees: No administration or origination fees.
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What is a secured credit savings loan?

A secured credit savings loan lets you accumulate savings while you repair your credit score. When you take out this type of loan, any money you pay into it will go directly into a secured account (like a short-term Guaranteed Investment Certificate).

As you make your payments to your lender, it will typically report each one to the credit bureau. The credit bureau will then add points to your score, which will improve your overall financial health. Once your loan is paid off, you’ll be able to access your funds in the secured account that your lender sets up for you. At this point, you can either keep them as savings or spend them on whatever you want.

Compare credit builder loans

Name Product Interest Rate Max. Loan Amount Loan Term Fees Min. Credit Score
Marble Fast-Track Loan
18.99% – 24.99%
36-84 months
Legal and admin fees of $295 - $1,500 (based on size of loan)
Marble Financial offer credit builder loans in amounts from $2,500 to $15,000. Improve your financial health within 36 months. This loan is strictly for borrowers exiting a consumer proposal.
Refresh Financial Credit Builder Loan
3-5 years
No administration or origination fees.
No funds are provided by Refresh upfront. Instead, funds are placed into a secured account to be accessed later. Your payments are reported to the credit bureaus, potentially impacting your credit score.

Compare up to 4 providers

Why do I need to build my credit?

Credit scores are used by lenders, employers and homeowners to rank consumers by how likely they are to pay their bills back on time. Lenders and credit card companies use them to decide how much money you’re eligible to borrow. They can also be a factor in whether you get approved or denied when you’re applying for a new job or a place to rent.

If you have a low credit score, you’ll likely struggle to qualify for most forms of financing. This can make it difficult to access funds if you want to purchase a home, lease a vehicle, cover emergency expenses, consolidate your debts or pay for any number of other day-to-day purchases.

When should I take out a secured credit savings loan?

You should only take out a secured credit savings loan if you feel like this could help you to rebuild your credit and set aside some much-needed savings. You might benefit from this type of loan if you meet any of the following criteria:

What eligibility criteria do I need to meet to get this type of loan?

To get a secured credit savings loan, you’ll need to meet a number of different criteria.

Eligibility requirements

  • Be at least 18 years old (and 19 in some provinces)
  • Be a citizen or resident of Canada
  • Have a source of consistent income

Required documents and information

  • Government-issued ID. You’ll be required to show proof of ID (like your driver’s licence or passport) to prove who you are.
  • Proof of address. You may have to show proof that you have a permanent address by providing a utility or phone bill.
  • Income verification. You could be required to show pay stubs and bank statements to prove that you have enough money coming in to cover your monthly payments.

Are there other ways to rebuild my credit?

If you want to take out a secured credit savings loan, there are a number of ways you can rebuild your credit.

  • Apply for a secured credit card. You’ll be able to qualify for a secured credit card if you put up cash as collateral to secure your balance.
  • Get a co-signer on your loan. You could rebuild your credit by securing a loan with a co-signer, and you’ll also be able to qualify for better rates.
  • Credit counselling. You might like to use a credit counselling service to look into how you can build up your credit score without having to take out another loan.
  • Borrowing from loved ones. Asking for a no-interest loan from family or friends could be a good option to clear out your debt if you don’t owe very much.

Bottom line

A secured credit savings loan can help you to rebuild your credit and save money for the future. The only downfall is that these loans come with high interest rates, which can cost you a significant amount in the long run. For this reason, it might make more sense to put your funds into a high-interest savings account.

Frequently asked questions

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