The Foundation
How it works:
How does The Foundation build payment history?
The Foundation is set up as a tradeline on your credit file. A tradeline is an industry term to describe an account on your credit report. Each month we will report your payment history to the credit bureaus. Making all your payments on time can help you improve your credit file.
How do I qualify for The Foundation?
In order to qualify for The Foundation, you will need to provide a valid Canadian government-issued ID and complete our online banking verification. Our trained associates can help you review and gather the required documentation over the phone, text, or email.
How is this going to help me when I need money right now?
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 often at very high interest rates. This leaves quick cash loans as the only option for many of our customers.
While The Foundation cannot give you money up front, you are guaranteed to get our Evergreen Loan as soon as you’ve completed 12 months of The Foundation and saved $750.
Why should I do The Foundation?
The Foundation has 3 key benefits:
- We set up a tradeline on your credit file and report all your payments. Making your payments on time can help improve your credit file.
- We help you save money by putting a large portion of every full payment aside for you as savings that you can request anytime when your account is in good standing. This will result in over $750 saved in 12 months!
- We guarantee you success – after 12 months on the Foundation and saving $750, you are guaranteed an Evergreen Loan which is a $1,500 up front cash loan.
How does The Foundation help me save money?
Right from your first payment, a portion from each full payment goes towards your savings. This is like a savings nest-egg for you. If you have the standard average payment of about $66 bi-weekly, then the following is an example of what you could expect to save:
Savings calculator
Months | Standard Payment |
1 | $62.50 |
2 | $125.00 |
3 | $187.50 |
4 | $250.00 |
5 | $312.50 |
6 | $375.00 |
7 | $437.50 |
8 | $500.00 |
9 | $562.50 |
10 | $625.00 |
11 | $687.50 |
12 | $750.00 |
This is an approximation based on the standard average payment size of about $66 bi-weekly and no missed payments.’
What are my payments going towards?
Your payments on The Foundation go towards your savings and the cost of the product. The standard payment is about $66 bi-weekly, and a large portion of it is set aside as your savings which you can request whenever you like when your account is in good standing. After making all of your full payments for the 12-month term, you will have $750 saved! The remainder of your payments go towards the cost of The Foundation.
Why am I making installment payments?
When you get The Foundation, we add a tradeline to your credit file. A tradeline is an industry term to describe an account on your credit report. Every month as you make your payments on time, we report this to the credit bureaus. This will help you establish payment history and help you get approved for other types of financing in the future.
Can I change my payments?
Yes! You can move your savings up and down. You can make your payment as low as about $37 bi-weekly and still help build your credit. Check your Foundation agreement or contact us if you would like to change your payment amount.
What happens if I miss a payment?
Spring Financial reports your complete payment history to the credit bureaus. If you make timely payments, then this can build your credit. If you miss payments, then this can negatively impact your credit.
If you’ve missed a payment, then please get in touch with us so we can help you get back on track.
Can I make additional payments?
Yes, with The Foundation, increasing your payment amount will speed up your savings and give you a larger rainy day fund, savings that you can request at any time when your account is in good standing.
What happens if I don’t have $750 saved in 12 months?
No worries – we’ve made the Foundation flexible to help you. If you need to lower your payments or if you need to request some of your savings during the first 12 months, then you may not have $750 saved at the 12-month mark.
At this point, you can either choose to continue for another 6 months at a time (you can do this as many times as you want).
As soon as you get to $750 in savings, you will still have access to the $1,500 Evergreen Loan.
Where is the savings portion held?
The savings are held at Peoples Trust Company on behalf of Spring Financial.
What happens at the end of 12 months?
Good question – at the end of the 12 months you’ll have 3 options:
- You can close The Foundation and receive all your savings back.
- You can take your Evergreen Loan offer: a $1,500 upfront loan.
- You can extend The Foundation for an additional 6-month term (can still cancel anytime). You would do this if you hadn’t unlocked your Evergreen Loan offer yet or you still wanted to have a tradeline reporting to the credit bureaus.
What is my savings balance?
Connect with us on chat or give us a call to find out how much you have in savings.
How can I request my savings?
You can request your savings at any time and for whatever purpose you like, as long as you don’t have an outstanding balance. We will deposit your savings into your bank account within 2-3 business days. Please give us a call and we will be able to assist you.
What documentation do I need?
All you need is:
A valid Canadian Bank Account
A valid Canadian Government-Issued ID.
How can I update my banking?
To update your banking information, please forward an image of a void cheque, pre-authorized debit form, or direct deposit form, with your name and bank information pre-printed on to support@springfinancial.ca. If the information is handwritten, please ensure a bank stamp is present on the document.
What is the cost of The Foundation?
The standard payment on The Foundation is about $74 bi-weekly. A large portion of each payment is set aside as your savings which you may request at any time when your account is in good standing. The remaining portion of your payment (about $37 bi-weekly) is the cost of the Foundation which includes the cost of reporting to the credit bureaus each month to help build your credit file.
Are there any other fees?
Aside from your regular payment amount, there are no fees that come standard with The Foundation. There are absolutely no admin, setup, or early pay out fees. If you miss a payment, you will incur a $30 missed payment fee. If you are concerned with missing an upcoming payment, please contact us right away to see what your options are.
Is there a setup fee?
No! There is no setup or admin fee. If you start on The Foundation and decide it’s not for you right now – no worries, you can cancel anytime without any extra fees.
I lost my job, what can I do?
Sorry to hear that. The Foundation is flexible so you can lower your payments or even use some of your savings to make payments for you (so you can keep building credit). Please give us a call to discuss your options.
What is the $5,000? How does it work?
For The Foundation to work, we set up a $5,000 tradeline on your credit file. A tradeline is an industry term to describe an account on your credit report. This $5,000 will show up as a tradeline loan on the credit report, but it is not a traditional loan and you will not have access to these funds up front.
Cancelling your loan:
Can I cancel The Foundation?
You can cancel anytime by calling us. You can cancel at any time with no fee. If you have any outstanding fees from any missed payments, then you will need to make this up at time of cancellation.
What happens when I cancel?
When you cancel, you will automatically get any savings refunded to you if your account is in good standing, and your payments will be stopped. If your account is outstanding, then you will need to pay it first (you can apply your savings to it).
Are there any fees to cancel?
No, there are no fees to cancel. If you’ve missed payments, then you will need to get caught up before you cancel.
Credit info:
Who needs The Foundation?
The Foundation is for Canadians who need to improve their credit situation and want access to personal loans at reasonable rates. If you meet any of the following criteria, then The Foundation is right for you:
- Have a credit score lower than 670
- Find it challenging to save money on your own
- Not getting approved for the financing you need
- Paying high interest rates
- Stuck in a quick cash loan cycle of debt
- Are new to Canada
- Are new to credit
- A student
- Have been through a bankruptcy, consumer proposal or credit counselling
The Foundation will give you a chance to make positive payments, improve your credit profile and help prove to banks and lenders that you can handle mainstream credit.
Why do I need good credit?
Your payment history impacts you in more ways than you may think. Many Canadians have the misconception that missing a few payments only affects their ability to obtain financing; however, your payment track record can influence many areas of your life. Here are some examples:
Obtaining financing: Your payment history helps determine if you get approved for financing. If you do get approved, your history can also affect the interest rate and overall cost of borrowing. People with limited or inconsistent payment histories often face higher borrowing costs and may even need to turn to short-term lending options.
Getting a job: Some employers require a credit check before making an employment offer. If your payment history shows missed or late payments, it may give an employer pause before extending an offer—especially in a competitive job market.
Renting an apartment: Landlords may review your credit profile when deciding whether to approve a tenant. A positive payment record can help you qualify more easily, while a history of missed payments may make it harder to get approved.
Getting a cell phone plan: Many cell phone providers may review your payment history before approving a monthly plan. If your record isn’t well established, you may need to choose a prepaid or pay-as-you-go plan, which can be more expensive.
What credit bureaus do you report to?
We report your payments to both TransUnion and Equifax. To learn more about the credit bureaus, please visit:
Equifax: www.equifax.ca
TransUnion: www.transunion.ca
How often do you report to the credit bureaus?
Every month, Spring Financial sends your payment history to both credit bureaus (TransUnion and Equifax) which will show up as a tradeline on your credit report. A tradeline is an industry term to describe an account. If you do not see your tradeline on your credit file, then please give us a call.
When can I apply for other financing?
We recommend making payments on The Foundation for at least 6 months before applying for other types of financing.
What happens to my credit if I miss payments?
Spring Financial reports your complete payment history to the credit bureaus every month. If you are making your payments on time, then this will help build a positive payment history; if you miss payments then it could negatively impact your credit file. If you’re currently on The Foundation and think you may miss a payment, then please give our Client Care team a call in advance of your payment date to see what we can do to help.
Golden rules of credit
Regardless of your credit situation, following these rules can help you build and maintain a stronger credit standing:
- Make all your payments on time, regardless of the type of debt. Making timely payments will help you establish a positive payment history on your credit file and help prove to lenders that you can handle credit. Missing payments will do the opposite. If you are falling behind on your payments, then 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 allows you to use credit as needed (up to the credit limit) over an extended time frame, including credit cards and lines of credit. If you have either or both products, then it is recommended that you don’t use more than 35% of the credit limit¹. For example: if you have one credit card with a $1,000 limit, try and keep the balance at $350 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 may hurt your score significantly and show lenders that you are frequently trying to find new credit. Consider waiting until you are certain that you will be approved before applying for credit. You can do this by monitoring your credit with one of the major credit bureaus, or by using free options such as Credit Karma or Borrowell.
- Have a mix of active tradelines on your credit file. A tradeline is an industry term to describe an account on your credit report. 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 tradeline is added to your credit report showing information about the creditor and your debt, including your payment history. Lenders like to see both revolving credit (e.g., credit cards, lines of credit), and installment credit (e.g., personal loans, auto loans) on a potential borrower’s file². Making timely payments on multiple types of credit will help prove to lenders that you are capable of taking on these financial responsibilities in the future. Equifax and TransUnion are the two main credit bureaus in Canada.
For more information on how credit and your credit score work, please visit:
https://www.equifax.com/personal/education/
https://www.transunion.ca/build-credit#
¹ https://www.consumer.equifax.ca/personal/education/credit-score/credit-mix/
² https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/improve-credit-score.html
Quick Cash Loan Education
Many Canadians who are unable to qualify for the credit they need unfortunately resort to a quick cash loan. Quick cash loans can be a dangerous cycle that is exceptionally hard to get out of. In Canada, quick cash loans can have interest as high as nearly 600%! What that means is that if you borrowed $1,000 of quick cash loans and kept them outstanding for an entire year, you would owe $6,000 in interest!
Quick cash loans also can be risky because they may not help you build credit. You can borrow money on a quick cash loan and pay it back perfectly but that information may not be reported to the credit bureaus to help improve your credit. However, if you fall behind on your quick cash loan and it goes to collections, then this likely will be reported to the credit bureaus and may damage your credit. This makes it difficult to start getting approved for mainstream financial products.
Spring Financial is here to help you fight the quick cash cycle. With The Foundation, you get to build a positive payment history on your credit file while putting money away for a rainy day.
Evergreen Loan:
What is the Evergreen Loan?
The Evergreen Loan is our promise to every customer – a $1,500 up-front cash loan after completing 12 months of The Foundation.
How do I get the Evergreen Loan?
We promise every single customer the Evergreen loan as soon as:
- They complete 12 months on the Foundation; and
- They have $750 in savings.
Need more information?
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