Borrowell Review for 2020

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Borrowell Review

Overall Rating

9.5

Bottom Line

Borrowell offers free credit monitoring and low-interest personal lending for Canadian residents. Improve your financial well-being and become a credit hero with Borrowell.

Pros

  • Free Credit Score
  • Access to Credit Repair Tools
  • Low Interest Personal Loans
  • User Friendly

Cons

  • Limited loan options

User Experience

10.0

Credit Services

10.0

Interest Rates

9.0

Online Tools

9.0

Let’s face it – your credit score is one of the most important vehicles for moving you through the world. Whether you want to buy a home, rent an apartment, purchase a new car, take out a personal loan, or even take advantage of some seriously sweet luxury reward credit cards – Your ability to do so all relies on your credit score.

But how many of us are making informed credit decisions? Pretty much everyone I talk with says that they want to improve their credit score—but when you’re just getting started, it can be overwhelming.

Second of all, it can be kind of, well, boring –But it doesn’t have to be.

borrowell review

That’s where Borrowell comes in. Borrowell offers a few different, super accessible services that help people make the right decisions about credit. With its free credit score and report monitoring, automated credit coaching tools, and AI-driven financial product recommendations, Borrowell empowers consumers to improve their financial well-being and be the hero of their credit.

You might be thinking to yourself – “Sure, this sounds great. I want to be empowered. But what does this actually mean?”

We’re here to break it down for you.

Borrowell: Fair Lending and Expert Credit Coaching for Canadians

First thing’s first. Borrowell is a Canadian company designed for and by Canadian credit consumers. And what do credit consumers need? Easy, no-fuss ways to monitor their credit safely and regularly.

Why? In a recent Borrowell study, researchers found a correlation between the frequency of credit monitoring and credit improvement over time. Simply put – The more often you check your credit score, the better off your financial health will be over time.

We liken credit monitoring to brushing your teeth. Okay, well, maybe you don’t have to do it every day, but getting into the habit of checking your credit helps you lessen the negative build-up that uncertainty brings, and also helps you get a handle on your finances.

So maybe it’s like cleaning out expired food from your fridge. Do it regularly, and you’re in good health. Avoid it, and it could be toxic.

Why you should know your credit score

Borrowell knows that human nature sometimes makes us avoid what is good for us. But knowing your credit score is the first step to financial health.

Your credit score tells banks and other lenders how desirable of a candidate you are for taking out any type of loan. This could be an auto loan, a mortgage, and even a lease since you are technically borrowing the right to live in a house you don’t own. A credit score is an indicator of worthiness, a number that represents your good faith and ability to pay your dues.

Once you know your credit score – and understand the factors that go into it – you can start to set more significant, longer-term financial goals. And Borrowell makes this super easy.

Easy ways to raise your credit score fast

Once you know exactly where you stand with your credit score, Borrowell automatically guides you to the next step. Borrowell clients have access to the first automated credit advisory tool in Canada, called Credit Coach. Borrowell’s AI-powered Credit Coach helps clients understand their credit score and provides tips that may improve it.

Borrowell Personal Loans

After customers both a) understand their credit score and b) discover ways to improve their credit health, they might be a good candidate for a personal loan.

Personal loans can sometimes be a good option for people who want to consolidate debt, make a major life purchase, or fund their education.

This is where Borrowell is unique because once Borrowell helps you establish good credit, it offers low-interest personal loans through its lending service. As a Borrowell customer, you will apply with a series of a few clicks, as Borrowell will already have your financial information. You’ll get a quick decision, and the money will be transferred within 48 hours of approval.

How to repay your Borrowell personal loan

Borrowell links directly to your bank account and automatically deducts payments on the dates agreed upon in your loan contract.

We suggest making these dates align with your paydays so that you eliminate the likelihood of spending the money before it’s due. Borrowell helps automate your finances like a pro.

What is the interest rate on a Borrowell personal loan?

Interest rates on Borrowell’s loans range from 5.6% to 29.19%. We realize that’s a big range, so like any loan application – we encourage you to apply judiciously to avoid any unnecessary hard inquiries to your credit history. That said – Borrowell allows you to perform a soft inquiry when getting pre-approved for one of their personal loans. This lets you discover your interest rate before making a full inquiry.

What does the typical borrower pay in interest on a Borrowell personal loan? According to Borrowell, the “typical borrower” pays roughly 11%.  This rate is much lower than most credit cards and great for Canadians who can’t borrow against collateral through an alternative loan, such as a Home Equity Line of Credit (HELOC). Borrowell personal loans are also great if you don’t have excellent credit. In fact – a personal loan can sometimes be the vehicle that lets you get there.

5 Reasons to Use Borrowell

After trying over 300 of the best money tools out there, there’s a lot we love about Borrowell. Here are some of the highlights:

1. You want to get your credit score for free in Canada

There is no reason why you should ever pay to check your own credit score. Free Borrowell credit monitoring is secure, easy, and accessible. Everyone deserves to sleep better at night.

2. You want to set financial goals that are as unique as you.

At its core, Borrowell puts the consumer first. After acquiring your free credit score, Borrowell sets you up with AI-driven, customizable goals to help you pay off credit card debt and other high-interest debt. Because no borrower is the same, Borrowell bases its recommendations on the data each customer provides before suggesting personal consolidation loans.

3. You want low origination fees on a competitive, fixed-rate personal loan.

Borrowers pay an origination fee of 1-5% of their personal loan amount. This fee is included in the annual percentage rate (APR) quoted for your loan and comes out of your monthly payments. This, and other reasons, are why Borrowell is gaining a reputation as the best online lender in Canada.

4. You want to be in good company.

If you’re like many people, you don’t want to feel like you’re standing out on a limb. With the surge in fintech and peer-to-peer lending, people sometimes fear being sucked into the latest fad, only to pick up the pieces if a startup were to fail. This is not the case with Borrowell, which recently celebrated 1 million members, meaning 1 in every 25 Canadians uses its friendly services. It’s safe to say – you’re in good company.

5. You want a one-stop-shop to compare well over 50 financial products at once.

Borrowell has 50+ partners, each with their own offerings of products for debt-consolidation, credit repair, mortgages, and more. Joining Borrowell grants you free access to this marketplace without having to open a zillion tabs on your browser. Plus, you get personalized recommendations based on your credit profile, driven by the power of AI.

Borrowell Is the Original Canadian Credit Monitoring Service

While Borrowell was the first Canadian credit monitoring service and is a leader in the online lending arena, they are not alone. Competitors like Mogo and Grow have sprouted up in the past few years.

Borrowell vs. Mogo

When comparing Borrowell vs. Mogo, the services are roughly the same. Borrowell offers a lower threshold for borrowing, meaning a person can borrow a personal loan of as low as $1,000. At the time of writing this, Mogo’s minimum is $2,000. It also seems as though Mogo offers payment plans of 2-5 years, whereas Borrowell starts its payment terms at 3 years.

That said, Borrowell’s expertise is undeniable. Its free services and fixed-rate personal loans can save you thousands while protecting you from credit card fraud and identity theft. We know we’re not alone when we say that Borrowell is the rightful leader among Canadian borrower services – in fact, over 1 million people agree!

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