We are bringing a new generation of credit to Canada that is fair, simple and allows all people to improve their financial and credit situation.
We Help Canadians
Spring Financial is a subsidiary of Canada Drives, one of the leading brands for auto financing in Canada. We started Spring because we were frustrated that many Canadians were being declined for credit or were paying unreasonably high interest rates on their loans with no opportunity to improve their situation. With Spring we’re providing the best and most accessible solution for Canadians to establish a positive payment history.
How It Works
We approve you for a loan, but instead of the funds going directly to you they are held in a secure trust account. As you pay off the loan with small bi-weekly payments we send payment reports to the credit bureau which in turn gives you the chance to establish a positive payment history.
Once you have paid off the loan the funds are released from the trust account and deposited right into your bank account.
- Credit Info
Make all your payments on time.
Regardless of the type of debt, it is essential that you make all your payments on time. Making timely payments will help you establish a positive payment history on your credit file and prove to banks and lenders that you can handle credit. Missing payments will do the opposite. If you are falling behind on your payments try calling the lender to see if you can come to an arrangement to prevent further damage to your credit.
Don't use too much of your revolving credit.
Revolving credit are things like credit cards and lines of credit. If you have either or both of these products it is recommended that you don’t use more than 30% of the credit limit. For example: if you have one credit card with a $1,000 limit try and keep the balance at $300 or less.
Don't apply for credit too often.
When you apply for credit a lender will do an inquiry on your credit file. This inquiry will slightly lower your credit score and appear on your credit file for all other lenders to see that you are looking for credit. Applying for credit too frequently will hurt your score significantly and show lenders that you are frequently trying to find new credit. It is best to wait until you are certain you will be approved to apply for credit. You can do this by monitoring your credit with a one of the major credit bureaus or by using the credit monitoring tool that is optional with every Spring Financial loan.
Have a mix of active, positive trade lines on your credit file.
In order to build and maintain credit you will need to have some active loans and credit cards. Each time you take out a new loan or credit card a new trade line is added to your credit file and each trade line will report your payment history. Banks and lenders like to see both revolving credit (credit cards or lines of credit), and installment credit (personal loans or auto loans) on a potential borrowers file. Making timely payments on multiple types of credit will prove to banks and lenders that you are capable of taking on these financial responsibilities in the future.
- Are new to Canada
- Are new to credit
- A student
- Have been through a bankruptcy, consumer proposal or credit counselling
- Are struggling to get approved for the credit you want
- Are paying high interest rates
- Have a credit score lower than 700
- How It Works
- When you make timely loan payments a portion of each payment gets applied to your outstanding principal balance. The first $550 of principle is applied to the set up fee on the loan, any principal paid after the first $550 goes back to you upon paying out the loan. If you make all of your payments this will amount to $1,750 by the time your loan is paid out!
- Spring will also help you save money when you apply by helping you qualify for lower interest rates on future loans or refinance existing loans at lower rates.
- Spring Loan Details
Your credit situation impacts you in more ways than you may think. Many Canadians have the misconception that having bad credit only affects their ability to obtain financing however, having bad credit can affect you in many ways. Here are some examples:
Obtaining financing: Your credit situation will first decide if you get approved or not. If you do get approved, your credit will help determine the interest rate and cost of borrowing. People with lower credit face higher borrowing costs and may even need to resort to payday loans.
Getting a job: Many potential employers require a credit check before making an employment offer. If you have bad credit it may be a reason for an employer to think twice before extending an offer, especially in a competitive job market.
Renting an apartment: More and more frequently a landlord will check the credit of a potential tenant. If you have bad credit it may be a reason for the landlord not to select you as a tenant for their place.
Getting a cell phone plan: Cell phone providers like Rogers, Bell and Telus will check your credit before issuing you a monthly phone plan. If you want to avoid having a pay-as-you-go plan, having good credit will be necessary.
Regardless of your current credit situation, following these rules will help you build and maintain a strong credit standing:
Equifax and TransUnion are the two main credit bureaus is Canada. For more information on how credit and your credit score works please visit their websites:
The secured loan is for Canadians needing to improve their credit situation.
If you meet any of the following criteria then a Spring loan
may be right for you:
Many Canadians who are unable to qualify for the credit they need unfortunately have to resort to a payday loan. Payday loans can be a dangerous cycle that is exceptionally hard to get out of. In Canada payday loans have interest as high as 600%! What that means is that if you borrowed $1,000 of pay-day loans and kept them outstanding for an entire year you would owe $6,000 in interest!
Payday loans also have another significant downside: they don’t help you build credit. You can borrow money on a payday loan and pay it back perfectly but none of that information is sent to the credit bureaus. However, if you fall behind on your payday loan and it goes to collections this will be reported to the credit bureau and will further damage your credit. This prevents you from improving your credit standing and makes it nearly impossible to start getting approved for mainstream financial products.
Spring Financial is here to help you fight the payday cycle. With a loan from Spring you get the chance to build a positive payment history on your credit file and put some money away for a rainy day.
Spring reports your complete payment history to the credit bureau. If you are making your payments on time, this will help you build a positive payment history, if you miss payments it could negatively impact your credit. If you currently have a Spring Loan and think you may miss a payment please give our Client Care team a call in advance of your payment date to see what we can do to help.
Spring helps you save money in two ways:
When your loan is funded, Spring advances your funds into a trust account to be held for you. You will not have access to these funds until the principal loan balance is paid out or closed.
Once the loan balance is paid out or closed and there is an equity balance due back, you will receive the funds by direct deposit within 7-10 business days. The funds will be deposited into the same account that you have made payments from.
Spring Contracts are signed electronically via DocuSign. DocuSign will create a signature for you which you agree at the time of signing is valid. To get a copy of your loan documents please call or email our Client Care team.
To learn more about electronic signatures please look here: https://www.docusign.com/how-it-works/legality/global/canada
All of our loan documents are signed with DocuSign. DocuSign is the platform we use to gather electronic signatures. Electronic signatures have the same validity as a signature done by hand.
To learn more about electronic signatures please look here: https://www.docusign.com/how-it-works/legality/global/canada
In order to close your loan you will need to pay out any outstanding balance. Our Client Care team can tell you what your outstanding balance is at any time.
If your outstanding balance is $1,750 or less you can use the funds held in trust for you to pay out the outstanding balance (you will not need to send us any money). Upon closing your loan, as long as there are no other outstanding fees or charges, you will receive your equity balance back.
If your outstanding principal balance is more than $1,750 the funds in trust for you will not be enough to cover your outstanding balance. Please call our Client Care team so they can go over your specific options with you.
Every month Spring Financial sends the payment history of all customers to the credit bureau. If you do not see your loan on your credit file please give our Client Care team a call.
Each payment is applied to both principal and interest. In addition, if you selected any of our optional products - Credit Monitoring or Loan Protection - a portion of each payment will be applied to those.
If you have missed payments a portion of your payment may be applied to the $30 NSF fee.
You are making installment payments on your loan with Spring Financial. Your loan funds are held in a trust account and are due back to you as soon as you pay off your loan. As the borrower, your job is to make all the scheduled payments on time. Making installment payments on time will help you build a positive payment history and improve your credit profile.
Yes, every Spring Loan is an open loan which means you can make extra payments at any time with no penalties or fees. To make an extra payment on your Spring Loan please contact our Client Care team or send an e-transfer to: [email protected]. You can request the exact e-transfer instructions from our Client Care team at any time.
Upon getting approved and signing the loan documents, Spring Financial lends you $2,300. This $2,300 is comprised of the setup fee ($550), and the secured cash amount ($1,750). The secured cash amount is held in trust as security against your loan; this means that for each loan we issue, we transfer $1,750 into a trust account for you (the borrower). The purpose of the security is to protect Spring (the lender) in the case you (the borrower) default or miss payments. Having this security allows Spring to give as many people as possible the chance to establish a positive payment history. When the principal loan is paid off, the amount in the trust ($1,750) is released back to you. If the borrower defaults on the loan, the amount in the trust first goes to any outstanding principal balance, then any remainder will be returned to the borrower. Your loan agreement will fully outline the details of the security and trust.
The secured funds are held in a trust account at TD Bank.
If you miss a payment you will fall behind on your loan. Each missed payment incurs an NSF fee of $30. If you think you are going to miss an upcoming payment please reach out to our Client Care team in advance of your payment date and they can review your options with you.
If you have lost your job please call our Client Care team to figure out a plan. If you have the optional loan protection with your loan our Client Care team will help you file a claim so that you can apply for coverage.
The documents you sign at the outset of your loan will detail that you have received a loan for $2,300 comprised of a $550 setup fee and $1,750 cash. The documents further outline that the cash amount is advanced into a trust for you upon signing the loan documents and due back to you as soon as the loan is paid out.
Within 7-10 business days of paying the loan off, the $1750 will be deposited back into the account
Spring Financial is helping tens of thousands of Canadians by approving them for a loan and giving them the chance to start building a positive payment history, proving to banks and lenders that they are capable of handling credit. Each loan is advanced directly to a trust which means that the borrower does not receive any funds up front. Only once the loan is paid off does the borrower receive the funds from the trust. This structure allows Spring to approve the thousands of customers that are left with no other options by banks and lenders.
We know that there are many needs for cash up front, however most of our customers cannot qualify for an unsecured personal loan, and if they do, it is at very high interest rates. This leaves payday loans as the only option for many of our customers.
While Spring cannot give you money up front, it will help you qualify for mainstream, non-payday financing in the future so you can avoid situations like this again.
At the moment, Spring does not offer any other products. However Spring is part of the Canada Drives Group of Companies which offers unsecured personal loans (www.freshstartfinance.ca) and auto loans (www.canadadrives.ca).
We recommend making all your payments on time on your Spring Loan for 9-12 months before applying for other types of financing. The absolute earliest we would recommend applying for new financing is in three months.
If you accepted the optional credit monitoring with your loan, check your credit score regularly. Wait until after you see improvement to apply for credit again.
Spring Financial wants to make sure you have the best chance of being successful in achieving your credit and financial goals. In order to do so, a trained underwriting associate reviews each Spring Loan application and supporting documentation to make sure that you are receiving enough consistent income to make payments on time, have a valid Canadian bank account in good standing, and that you live in a province we operate in.
In order to be approved for a loan you will need to provide a valid government issued ID, a bank statement with at least 30 days of transaction history, and a void cheque. Our trained agents can help you review and gather the required documentation over the phone, text, or email.
In order to increase the chances of approval in the future please consider paying off your current debts and other obligations, avoid going into overdraft, and maintain a consistent positive balance in your bank account.
Spring Financial operates in every province and territory in Canada with the exception of: Saskatchewan, Quebec, New Brunswick and Nova Scotia.
We offer TransUnion credit monitoring as an optional add-on to any Spring Loan. Credit Monitoring allows you to get the most accurate evaluation of your credit file without damaging your score. Credit Monitoring is a great product to have alongside your Spring Loan as it allows you to directly track your progress and helps you make an educated decision on when you should apply for mainstream credit again.
If you have any questions with credit monitoring or are having trouble activating or accessing your credit monitoring please contact our Client Care team.
The interest rate on all of our loans is 17.99%
Interest is calculated on the outstanding principal balance since your last payment. The interest rate on your loan is 17.99%.
There is a $550 setup fee that is included in the principle balance of the loan. This setup fee is paid as part of your quoted loan payments and, if all scheduled payments are made on time, will be paid completely by the 12th month of the loan.
Other than the setup fee there is a $30 NSF fee in the event that a payment is missed. If you are worried about making a payment on time please reach out to our Client Care team to see if you can make an arrangement.
We offer payment protection coverage with all Spring loans. This product is completely optional and not required to obtain the loan. Payment protection is insurance that will cover a portion, or all, of your loan payments in the case of qualifying involuntary job loss, critical illness, disability, or death. If any of these apply to you please call or email our Client Care team and they will help you with the forms needed to complete a claim.
Your loan term is 36 months from the funding date (start of your loan). Each of our loans are also “open loans,” which allow you to make prepayments and settle your loan early without penalty. To find out how long is left on your loan please review your loan documents or call our Client Care team.
The first $550 in principle paid on your Spring Loan goes towards the Set Up fee. Any principal paid after the first $550 is considered your equity balance and is due back to you upon paying out your loan.
You can check the remaining balance on your loan by calling our Client Care team.