Borrowell can be a great tool in your financial wellness toolkit.

Tracking your credit score is important. While it may not be as important as getting out of debt (which naturally hurts your credit score), or saving for retirement, having a good credit score can save you thousands of dollars annually. 

Read >>> How to Get Out of Debt

Having a bad credit score can profoundly affect your financial well-being in various ways.

Firstly, it limits your access to credit, making it challenging to secure loans for significant purchases such as a home or car. Even if you manage to obtain a loan, lenders are likely to impose higher interest rates, translating to increased overall borrowing costs.

Read >>> How to Buy a Car

Moreover, landlords and utility companies often check credit scores when considering applicants, potentially leading to higher security deposits or even denial of service.

A poor credit score can also hinder your ability to secure favorable insurance premiums since insurers may view you as a higher risk. Additionally, employers in certain industries may scrutinize credit reports during the hiring process, impacting your job prospects.

Over time, the cumulative effect of these financial setbacks can lead to a cycle of debt and limited opportunities, making it harder to achieve long-term financial goals. Therefore, maintaining a good credit score is crucial for financial stability and flexibility in navigating life’s inevitable financial challenges.

Tracking your credit score should be easy, and it should be free. Every step towards achieving financial freedom should be easy and in some cases free. Paying for unnecessary products and services does not help you on your personal finance journey. 

Lucky for you, there is a product in the market that will allow you to track your credit score on an ongoing basis……..for free

Borrowell

In this post, we’ll walk through how Borrowell can help you achieve your financial goals. 

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Borrowell History

Borrowell is a Canadian company shaking things up in the financial world.

Back in 2014, three friends—Andrew, Eva, and Dan—got together and thought, “Hey, why isn’t managing money easier?” And boom, Borrowell was born. They wanted to make finance less of a headache for Canadians, and they hit the ground running with their online platform. You know what’s awesome? They started giving out free credit scores, which was a game-changer. No more hidden fees or hoops to jump through just to know where you stand financially.

Then, in 2016, Borrowell kicked it up a notch by offering personal loans. Suddenly, getting a loan didn’t involve trekking to a bank and waiting forever for approval. Nope, Borrowell made it all digital, super quick, and with rates that didn’t make you cringe. People loved it.

Borrowell didn’t stop there. They joined forces with Equifax in 2018 to bring credit monitoring and identity theft protection to the table. It’s like having a guardian angel watching over your credit score.

Borrowell cares about teaching folks to be smart with their money. They’re not just about loans and credit scores; they’re all about helping you understand this whole money thing better. They team up with schools, groups, and even the government to spread financial wisdom far and wide.

Borrowell isn’t just a company; it’s like having a buddy who’s got your back in the wild world of finance. So, if you’re in Canada and want to navigate money matters like a pro, Borrowell’s your go-to crew.

What Does Borrowell Do? 

Borrowell offers a range of services to help Canadians manage their finances more effectively:

1. Free Credit Scores: Borrowell provides users with free access to their credit scores, allowing them to see where they stand financially without any hidden fees or charges.
2. Personal Loans: Borrowell offers personal loans with competitive interest rates and quick approval processes. This makes it easier for Canadians to access credit when they need it, without the hassle of traditional bank loans.
3. Credit Monitoring and Identity Theft Protection: Through a partnership with Equifax, one of the major credit bureaus, Borrowell offers credit monitoring and identity theft protection services. This helps users stay on top of their credit health and protect themselves from fraud or identity theft.
4. Financial Education: Borrowell is committed to promoting financial literacy and education. They partner with schools, community organizations, and government agencies to provide resources and information to help Canadians make informed financial decisions.

In a nutshell, Borrowell is all about making finance more transparent, accessible, and understandable for Canadians. Whether you need to check your credit score, get a loan, monitor your credit, or learn more about managing your money, Borrowell has got your back.

Borrowell pulls your credit score from Equifax (one of Canada’s largest credit bureaus). This service historically has come with one-time or monthly fees, and the free offerings from Borrowell have naturally been a disruption in the space. 

Borrwell combines weekly credit checks with financial education to help Canadians understand how their credit score can financially impact major purchases and loan applications.

Borrowell will take your personal information, but it is as secure as any platform, so you shouldn’t worry about cyber risk. 

Another thing to note about Borrowell is that it only performs “soft” credit checks, meaning that any inquiry performed by Borrowell will not negatively impact your credit score. Hard inquiries performed by financial institutions will negatively impact your credit score for a short period. 

Borrowell also provides its users with the following benefits: 

• A graph showing your credit score over time
• How your credit score compares to others by age, income, and state
• A credit report card that shows you how certain factors—like your payment history and debt utilization—impact your credit score
• Tools to let you simulate how paying down debt or applying for new credit will change your score
• The ability to secure loans for the following purposes
  • Debt consolidation
  • Auto Loans
  • Home Improvement
  • Business Loans

Borrowell Positives

Credit Checks Are Free, 

During my 20s, I needed to obtain my credit score to assist in an apartment rental application. I obtained my credit score online with Transunion and moved on with my life. 

Eventually, I noticed that Transunion was pulling $20 from my bank account every month as an ongoing service fee. When I went online to cancel these monthly transactions, I was told that I needed to call a 1-800 hotline. After ~5 attempts of calling the hotline, I was finally able to cancel these monthly transactions (after a 30-day cancellation fee). 

Borrowell is 100% free. 

Easy to Set up

Setting up your Borrowell account doesn’t take more than 5-10 minutes. You will of course need to provide some personal/financial information (such as your SIN number), and you’ll instantly have access to your credit score. 

There are security measures in place such as a two-step authorization which you can take advantage of to further protect your personal information.

Easy to Use 

Upon logging in, you will have instant access to your credit score through Equifax. 

Here is a walkthrough of the user experience 

Borrowell Knowledge 

In addition to accessing your credit score, you can also browse several articles that dive into how a credit score is created and things you can do to raise your credit.

Borrowell provides personal finance tips and resources to help users manage their money more effectively. Through its website, blog, and various educational initiatives, Borrowell offers advice on a wide range of financial topics, including budgeting, saving, investing, credit management, and debt repayment strategies.

These personal finance tips may cover practical advice on creating a budget, saving for specific financial goals like a vacation or a down payment on a house, understanding different types of investments, optimizing credit card usage to improve credit scores, and strategies for paying off debt efficiently.

Borrowell aims to empower users with the knowledge and tools they need to make informed financial decisions and improve their overall financial well-being. By providing accessible and actionable advice, Borrowell helps users navigate the complexities of personal finance and work towards their financial goals with confidence.

Great Mobile Experience 

With some financial products in the market, the mobile experience can be lacking compared to the desktop version. Borrowell provides an easy-to-use mobile experience to complement their desktop version. It’s a great option for mobile-first consumers.

Borrowell offers a user-friendly mobile experience through its mobile app and optimized website. Whether you’re accessing Borrowell’s services on your smartphone or tablet, you can expect a smooth and intuitive interface designed for easy navigation and usability.

The Borrowell mobile app, available for both iOS and Android devices, provides convenient access to your credit score, personalized financial recommendations, loan options, and credit monitoring features. The app is designed to deliver a seamless user experience, allowing you to check your credit score, monitor changes in your credit report, apply for loans, and access educational resources on the go.

Moreover, Borrowell’s website is mobile-responsive, meaning it adjusts to different screen sizes and devices, ensuring that you can access all of Borrowell’s features and resources seamlessly from your mobile browser. Whether you’re using a smartphone or tablet, you’ll have access to the same functionality and information as you would on a desktop computer.

Overall, Borrowell prioritizes providing a positive mobile experience for users, recognizing the importance of accessibility and convenience in today’s digital age. Whether you prefer to manage your finances through the mobile app or website, Borrowell ensures that you can easily access your financial information and take control of your financial health from anywhere, at any time.

Access to Loans

For some Canadians, accessing a loan through credit unions or big banks can be difficult or impossible to obtain. Credit Karma can provide an alternative for some individuals. 

Loans on average range between 11-12% APR, which is higher than the national average. With that in mind, Borrowell should only be used as a last resort for some individuals. 

You will need a credit score of >660 to access the Borrowell loans and meet the following criteria: 

• Be a Canadian citizen
• At least the age of majority in your province
• Have a bank account with a Canadian bank
• At least 12 months of credit history
• Credit score of at least 660
• No bankruptcy, consumer proposal, collections or delinquencies on your credit history
• At least $20,000 in annual income
• Have at least two recent pay stubs to verify your income, or two Notices of Assessment to verify your self-employment/business/investment/pension income

Borrowell Negatives

Loan Costs

Compared to other loan providers, Borrowell does not offer a breadth of loan options when compared to other options in the market. Specifically, they do not offer loans greater than 5 years, so Canadians who need a loan greater than 5 years are out of luck. 

Borrowell promotes APRs as low as 5.69%, but as mentioned earlier, the average APR is roughly 11-25%, which is higher than what you expect to see from a traditional financial institution.  

Here is information on RBC’s personal loan for a comparison

Narrow Thought Leadership

Borrowell bills itself as a broad financial wellness platform, but the website fails to touch on many important aspects of achieving a state of financial wellness (investing strategies, a rewarding career, etc.) 

Conclusion

As mentioned at the top, ensuring you have a good credit score can help reduce the monthly fees associated with housing and auto payments. It can also enable you to sign up for credit cards which offer lucrative signing bonuses. 

All this can equate to thousands of dollars a year in terms of savings 

Borrowell allows you to track your credit score on an ongoing basis and will allow you to watch your credit score rise over time. This is a free offering that can do an adequate job when compared to the large creditors in the market.

Through its user-friendly platform, Borrowell provides free access to credit scores, personalized recommendations, and transparent loan options, enabling users to make informed decisions about their finances.

Borrowell’s commitment to financial literacy and education sets it apart, as the company strives to empower users with the knowledge and tools they need to achieve their financial goals. By partnering with industry leaders, conducting original research, and fostering community engagement, Borrowell demonstrates its dedication to thought leadership and innovation in the personal finance space.

For Canadians seeking to navigate the complexities of personal finance with confidence and convenience, Borrowell serves as a trusted ally, guiding them toward financial wellness and stability. Whether it’s checking your credit score, applying for a loan, monitoring your credit health, or accessing educational resources, Borrowell offers a comprehensive suite of solutions tailored to meet the diverse needs of Canadians.

In an increasingly digital and fast-paced world, Borrowell stands out as a champion of financial inclusion and transparency, empowering individuals to take control of their financial futures. Therefore, Canadians looking to optimize their financial well-being and unlock greater financial freedom would be wise to harness the power of Borrowell’s innovative platform and expertise.

With Borrowell by their side, Canadians can embark on their financial journey with confidence, knowing they have a trusted partner committed to their success.

While the loan options may not be for everyone, the free credit score check means that has a place in your financial wellness portfolio 

Borrowell Competitors 

Borrowell vs Credit Karma

Read >>> Credit Karma Review

Credit Karma is the other large free credit score provider in the Canadian market. Quite frankly, Credit Karma offers many of the same features as Borrowell, but there are some key differences.

One notable distinction lies in their business models. Borrowell primarily focuses on offering personalized financial products and services, such as personal loans and credit monitoring, while Credit Karma operates as an advertising-driven platform, offering users free access to their credit scores and financial information in exchange for targeted advertising offers from third-party partners.

Another difference is in their credit score providers. Borrowell partners with Equifax, one of the major credit bureaus, to provide users with their credit scores and credit reports, while Credit Karma uses TransUnion, another major credit bureau. While both Equifax and TransUnion are reputable sources for credit information, users may notice slight variations in their credit scores and reports due to differences in scoring models and data sources used by each bureau.

Additionally, Borrowell places a strong emphasis on user privacy and data security, implementing robust measures to protect users’ personal and financial information. The company adheres to strict privacy standards and regulations, ensuring that user data is kept confidential and used responsibly. On the other hand, Credit Karma has faced criticism in the past regarding its data privacy practices and the handling of user information, raising concerns among some users about the security of their data.

Furthermore, Borrowell distinguishes itself through its commitment to financial education and literacy initiatives. The company provides users with educational resources, articles, and tools to help them better understand and manage their finances. While Credit Karma also offers some educational content, Borrowell’s focus on financial literacy sets it apart as a valuable resource for Canadians looking to improve their financial knowledge and skills.

Transunion & Equifax occasionally will post different credit scores. As a result, some Canadians choose to sign up for both Borrowell & Credit Karma to get a more holistic view of their credit score. 

Credit Karma	Borrowell
Free credit score monitoring	Free credit score monitoring
Financial Marketplace	Personal loans
Personal Loans through loanconnect.ca	Credit coaching
Thought leadership	Financial Marketplace

Borrowell FAQ 

How Does Borrowell Make Money? 

Borrowell primarily makes money through several revenue streams:

• Affiliate Partnerships: Borrowell partners with financial institutions, including banks and credit card companies, to offer users various financial products and services. Borrowell earns referral fees or commissions when users apply for and are approved for these products through Borrowell’s platform.
• Lending Products: One of Borrowell’s primary revenue streams comes from offering personal loans to users. When users apply for and accept a loan through Borrowell’s platform, the company earns revenue through interest payments and origination fees.
• Credit Monitoring Services: Borrowell offers credit monitoring and identity theft protection services in partnership with Equifax. While users can access basic credit score information for free, Borrowell may charge for additional features or premium services, generating revenue from subscription fees or one-time payments.
• Advertising and Sponsorships: Borrowell may also generate revenue through advertising and sponsorships. This could include displaying targeted advertisements on its platform or partnering with companies to sponsor educational content or events.
• Data Analytics: Borrowell may leverage anonymized user data for analytics purposes, providing insights and trends to financial institutions or other companies. While user privacy is paramount, Borrowell may generate revenue by offering data analytics services to third parties.

Is Borrowell Secure?

Borrowell uses 256-bit encryption, the same encryption used Canada’s largest banks.

Should You Use Borrowell For a Loan

The Borrowell loan makes sense if you meet the following criteria: 

• If you can pay back your loan relatively quickly (11% APR is tough to swallow over 3-5 years)
• If you have high-interest credit card debt (higher than 11% APR), the debt consolidation option through Borrowell may make sense for you

You shouldn’t consider Borrowell if: 

• Your credit score is below 650 (you probably won’t qualify)
• You need a loan greater than 5 years

I would check with one of Canada’s major financial institutions before looking to Borrowell for a loan.

Does a Credit Check on Borrowell Affect My Credit Score?

Borrowell only performs “soft” credit checks, meaning that any inquiry performed by Borrowell will not negatively impact your credit score. Hard inquiries performed by financial institutions will negatively impact your credit score for a short period.

What are the Credit Score Ranges in Canada?

In Canada, credit scores start at 300 and go as high as 900. A bad credit score is a score of 574 or less. This means banks, lenders, landlords, and even some employers will consider you less financially responsible than borrowers with a higher score.

A bad credit score can significantly impact your ability to receive travel credit cards. Travel credit cards often come with lucrative rewards programs, including points or miles that can be redeemed for flights, hotel stays, and other travel expenses. However, these cards typically require applicants to have good to excellent credit scores to qualify.

When you apply for a travel credit card, the issuer will typically conduct a credit check to assess your creditworthiness. If you have a bad credit score, it indicates to the issuer that you may have a history of late payments, high levels of debt, or other financial issues. As a result, you may be viewed as a higher-risk applicant and may be denied approval for the card.

Needless to say, having a bad credit score can drastically impact an individual’s journey to financial freedom. As a result, Canadians should be actively trying to raise their credit score. 

4 Steps to Help on Your Financial Wellness Journey 

1. Before you can improve your credit score, you first need to know where you’re starting from. Free services like Borrowell can help you do this.
2. Try and Use roughly 1-10% of your overall credit allotment every month (the smaller the better).
3. Set up automatic payments between your financial institution and your credit card, eliminating the unfortunate mistake of missing a payment 
4. Don’t frequently cancel credit cards, as this will negatively impact your score. The majority of creditors in Canada will allow you to transfer to a different card. This does not impact your credit score