By now, you may have heard of Borrowell, a company that promises to demystify your credit score. You may also have a few questions about them. What does this company really do, and are they safe to use? You’ll find all your answers below.
Borrowell is one of a few companies working to give Canadians better access to their own credit information, and with it, the opportunity to build better financial health. Their main focus is on using technology to make it easier for people like you to access their own financial information. Since they were first founded back in 2014, they have helped over 500,000 Canadians with their financial affairs and have kick-started a sea change in terms of how credit scores are accessed and what they can be used for.
Unlike their competitors in this space, however, they were the first to break into this segment of the industry in Canada. They are proud to be a ‘100% Canadian’ company with strong roots in this country’s financial ecosystem. They also double as a lender for people with good and mediocre credit alike, providing a supplementary service to their clients by allowing them one more option for their credit needs. We’ll delve deeper into this extra component of theirs below.
Everyone’s dealing with Borrowell always start off with a free credit check and report. This process is completely secured using encrypted connections, and all you have to do to start it is answer a few questions. Once you’re done, they provide you with your Equifax credit score, as well as a list of all the inquiries made on your Equifax file. This is important because your score may vary depending on the credit bureau it is checked with, and Borrowell is currently the only source for scores from this bureau aside from Equifax themselves. You can get a new update on this information every month, allowing you to track your progress over time and see if any of your credit-building endeavours have begun to pay off.
This credit score reporting function is extremely helpful on the user’s end and is completely free to use, but it also leads you in to the part of Borrowell’s services that they have been able to monetize. In addition to your credit report, Borrowell also displays a set of personalized financial product recommendations to each client they serve. These products come from many different companies and lenders and are all chosen specifically for you by Borrowell’s internal algorithms.
As you might expect, Borrowell does receive a referral kickback for any successful applications that were initiated through their website, but that doesn’t mean that they will ever mislead you or force you into anything against your will. You can choose to apply for any of the recommended products that you like or ignore them altogether – you’re under no obligation to pay any attention to them at all if you don’t want to.
Further to that, Borrowell also deals in the lending market directly, offering personal loans of up to $35,000 for select customers. When one particular consumer is a good candidate for one of these loans, that option will be displayed next to the other products that are being shown. Although one can assume Borrowell’s profit margins are much higher on these loans than they are on the loans that they merely recommend on behalf of other companies, you are never forced to accept or even consider one of these loans at any point during the process. They are simply one of many options that are shown to be available to you, and they may or may not be the best solution in your individual case. Some of these are available at an APR as low as 5.99% (not including the origination fee), so in some cases they really might be the best possible option for you – but even if that is the case, the choice is ultimately yours.
What Customers Think (Borrowell Reviews)
For the most part, Borrowell enjoys a very sunny reputation online. They boast many very positive reviews on Google Reviews in particular. Customers generally express great satisfaction with the free credit report component of their services in particular, confirming that it is easy to use and provides an accurate estimate of what a person’s credit score will look like to any financial companies they apply to. Many also speak highly of the financial products that they chose to try based on the recommendations they received with their report, but the reports themselves are by far the most popular aspect here.
This positive air also carries over to the professional side of things. The general reception of this company in no way suggests that they are an inept or fraudulent enterprise. In fact, Borrowell has received several awards, including placing on the Deloitte Technology Fast 50 list, the KPMG Fintech 100 list, and the CIX Top 20 list. These things indicate that although there is little precedent for this kind of service, this is just something new to the industry that shouldn’t be viewed with suspicion merely because of that fact. When judged on their own terms, they seem to provide a perfectly safe and satisfactory service.
What We Think
Based on the Borrowell reviews we’ve come across and the overall nature of their operations, we think they’re doing a good job of bringing Canadians closer to the details of their own credit. We do worry that their product recommendations may be somewhat limited in scope. Since we provide a similar service, we know how hard it can be to meet people’s financial needs with as much specificity and care as they really need. This is a particularly pressing potential concern in light of the fact that this company also has a potential stake in your choice due to their involvement in the lending side of things too. We see no reason to doubt their safety, viability or integrity at this time, but we would suggest getting a more wide-ranging view of your options before committing to any of the products they present to you.