Borrowell is a Canadian financial technology company that provides free Equifax credit score information and offers an online marketplace for loans and other financial products.
Borrowell has quickly become one of Canada’s most popular online lenders, focusing on providing users with fast, easy access to loans at competitive interest rates. They teamed up with Equifax to allow Canadians to access their credit score and credit reports for free.
In this Borrowell review, we will provide a comprehensive overview of Borrowell, its offerings, products, pros and cons, safety measures, and how it compares to other credit service providers in Canada. Without skipping a bit, let’s get right into it.
What is Borrowell?
Founded in 2014, Borrowell is a Canadian tech company that helps Canadians gain access to fair and affordable loans all while helping them monitor and even improve their credit health.
As the first fintech company to provide free credit score services in Canada, Borrowell’s easy-to-navigate online application makes it a preferred choice among young Canadians and newcomers to Canada.
Borrowell is unique because of its free weekly credit score, credit report, and wide range of financial products from over 50 partners. Based on your credit profile, it recommends over 50 financial products from its partners at no cost to you.
It offers credit-building products to help build a positive credit history with no debt involved. The Borrowell Boost offers the help you need to avoid overdraft fees, and credit score decreases.
Borrowell can also be useful to other Canadians interested in financial products, like credit cards, personal loans, insurance, etc.
Pros and Cons of Borrowell
Let’s explore some of the benefits and downsides of using Borrowell, so you can decide whether it’s the right choice for you.
Pros
- Ease of use
- Free credit score check, credit report, credit education, credit monitoring and tips.
- Personalised product recommendations
- $75 (interest-free) cash advance for non-sufficient funds (NSF).
Cons
- High loan interest rates (avg. 5.6% – 29.19% APR)
- Limited loan terms of 36-60 months
Products Offered By Borrowell
Several products and features offered by Borrowell set it apart from other fintech companies in Canada. Let’s explore some of them:
1. Free Credit Score
Borrowell offers a free weekly credit score and credit report based on Equifax’s proprietary model. It automatically updates your score weekly, offering customised ideas for improving your credit score and recommending the best financial products that suit your credit profile.
You can print or download your credit report at no cost. You can also see all your payment history on the credit report, helping you improve your budget and debt payment.
2. Rent Advantage
Borrowell recently introduced its new Rent Advantage product in July 2022. The program is designed to help report on-time rent payments to Equifax Canada. However, it is available only to select Borrowell members.
With this program, renters can build their credit score and history debt-free. You can set up and cancel the Rent Advantage program online without paying a fee. There is a subscription fee of $5. You must provide your lease details and connect your bank account or credit card used to pay your rent.
3. Credit Builder
The Borrowell Credit Builder is designed to help Canadians build a strong payment history and credit mix of their credit report by making monthly payments of $10-$50. All payments are reported to Equifax Canada.
There are three types of Credit Builder plans:
- Starter: Pay $10 monthly ( $5 savings and $5 fees) and get back $240 after 36 months.
- Plus: Pay $30 monthly ($20 savings and $10 fees) and get back $840 after 36 months.
- Pro: Pay $50 monthly ($35 savings and $15 fees) and get $1,440 after 36 months.
4. Credit Cards
With the Borrowell Credit Card Comparison Tool, you can compare different credit cards and check their features and annual and interest rates.
5. Personal Loans
If you are looking for a loan to cover emergencies and unexpected expenses in Canada, you can consider Borrowell personal loans. Borrowell offers personal loans at a minimum of $1,000, a maximum of $35,000 and an APR of 5.6% to 29.19%.
The loan term is 36 to 60 months, and monthly payments depend on the loan. No prepayment penalty or returned payment fee. However, there’s a late payment fee of $25 to $54.
6. Mortgages
While Borrowell doesn’t offer mortgages, it can use your credit profile and answers to a few questions to find and compare mortgage rates from over 50 lenders in Canada.
It also assigns you to Mortgage experts who can guide you through the process and help you with all the necessary resources to get your mortgage.
7. Banking and Insurance
Borrowell combines its expertise and technology to provide the best accounts for your financial needs. They offer checking and savings accounts in Canada.
Borrowell also offers a range of insurance products and makes recommendations based on your financial profile.
Is Borrowell Safe & Legit?
Yes, Borrowell is a safe and legitimate Canadian company. The company is based in Toronto, Ontario and provides access to credit scores and reports through Equifax, one of Canada’s credit bureaus.
Borrowell uses 256-bit encryption for every data entry. This means all their services are safe to use. Borrowell is also a member of the Canadian Lenders Association.
In addition, Borrowell has an A+ BBB rating and over 1.5 million trusted members in less than a decade.
How to Open a Borrowell Account
Signing up to Borrowell takes less than 3 minutes. You can sign up for Borrowell through its website or app, available on the Google Play store and Apple Store.
Here are the steps for opening a Borrowell account through the Borrowell website:
- Visit the signup page
- Enter your email address
- Create a password
- Provide your full name
- Enter your current address
- Provide your personal details (DOB, telephone number, income)
- Provide your financial goals for customized recommendations
- Answer questions about your credit file
That’s all. You are now one of the more than 1.5 million Borrowell users.
How Does Borrowell Compare With Other Credit Service Providers in Canada?
While Borrowell is one of Canada’s credit score builders and personal loan companies, other companies offer similar services, like Credit Karma. Let’s see how Borrowell compares to Credit Karma.
Borrowell vs Credit Karma
Formerly known as Noddle, Credit Karma is a free credit service provider based in the US with members across Canada and the UK. Like Borrowell, Credit Karma also uses Equifax plus TransUnion to offer free credit scores, report monitoring, and services to over 100 million users.
While both platforms offer valuable tools for managing your credit health, Borrowell is a more focused option for Canadians looking for personal loans, debt consolidation, and credit coaching services. Credit Karma, on the other hand, provides a wider range of financial services and tools for US-based users.
In addition to credit monitoring, Credit Karma offers a range of other financial tools, such as tax preparation services and personalised recommendations for credit cards and loans.
RELATED: Borrowell vs Credit Karma vs Mogo
Final Thoughts on Borrowell Review
Borrowell is a valuable tool for Canadians looking to manage their finances and improve their credit scores. Its free credit score and personalised product recommendations make it a top fintech company in Canada.
While the high loan interest rates and limited loan terms may be a downside, the Rent Advantage program, Credit Builder, and Credit Card Comparison Tool offer unique benefits.
Overall, Borrowell is a safe and legitimate company that provides Canadians with a wide range of financial products and services.
If you’re looking for a comprehensive Borrowell review, this article has covered everything you need to know to decide whether it’s the right choice for you.
FAQs on Borrowell Review
Is Borrowell Any Good?
Yes. Borrowell is good because of its free and accurate credit score services and other reliable financial products from over 50 partners. Furthermore, Borrowell is on top of its game with its free credit score services, credit education, and credit coach to $75 (interest-free) cash advance for non-sufficient funds (NSF).
What is the Highest Credit Score on Borrowell?
The highest credit score on Borrowell is 900, and the least is 300. Borrowell uses the Equifax Risk Score 2.0 (ERS 2.0) to determine your credit score using your credit report.
Does Borrowell Affect Credit?
No. Borrowell’s credit check doesn’t affect your credit score because it’s not a hard check. Borrowell conducts a soft check which doesn’t hurt your credit score.
What Information Does Borrowell Need?
Borrowell needs your personal information, such as your full name, date of birth, address, and telephone number, to provide your credit score and credit report. Furthermore, Borrowell needs information about your credit file and goals to provide customized recommendations on improving your credit score and finance.
Does Borrowell Use Equifax?
Yes. Borrowell uses Equifax’s proprietary model, which the Equifax credit bureau offers.
Does Borrowell Lend?
Yes, Borrowell partners with over 50 companies to provide loans based on your credit profile. Once you sign up on Borrowell, you will see a range of loans that suit your profile.
How Often Does Borrowell Update?
Borrowell updates its credit score weekly. This means you will receive your credit score and credit report every week, helping you keep track of your credit score progress frequently.
