Credit Score FAQs

Getting My Credit Score

No. Checking your credit score with Borrowell is a “soft” credit inquiry, and will not affect your credit score in any way.
At Borrowell, the security of your information is of the utmost importance. In order to protect your personal information from unauthorized access and use, we use security measures that meet or exceed industry standards for financial institutions.

We have implemented administrative, technical and physical measures to safeguard the personal information in our custody. We restrict access to any personal information on a need-to-know basis and limit access to employees who require access to fulfil their job requirements.

We know how important your privacy is to you. We will never share your personal information with a third party without your explicit consent. To learn more about how we protect your information, please review our Privacy Policy.
We don’t like spam either! We plan on sending information that we think will be useful to you – like tips on how to improve your credit score, or offers that are tailored to your financial profile. But if you’re not finding them useful, you can always unsubscribe. We’ll still let you know when your score has been updated.
Borrowell will refresh your credit score every 3 months so you can track your financial standing over time. You’ll receive an email when it’s time to log in and check your new score.
Borrowell is Canada’s leading digital lending marketplace, offering personal loans to Canadians with good credit.

Unlike applying for a loan from a bank, our technology driven process is fast, fair and friendly.

We believe that all Canadians should have access to their credit score for free as a first step in taking control of their financial well-being and their financial future.

We’ve helped lots of Canadians pay off credit card debt with our loans, and our hope is that other Canadians will find out about us and find out how great our service is.

Applying To Get My Credit Score

Check your spam folder. Occasionally a confirmation email goes there. If that fails, are you sure that you used the correct email address? You can try to login again and request another confirmation email.
If you are not able to log in, it’s possible there was a typo in your email address, in which case you can try to apply again with your correct email address.
If your file has a flag on it (for example, if you have reported your wallet stolen), you may be prevented from seeing verification questions. This is for security purposes. You may want to contact Equifax Canada to make sure that there are no alerts on your file.
You can contact Equifax at 1-800-465-7166.
If you’ve tried the identity verification questions twice and were not successful, we are unable to show you your credit score. This is for the protection of your personal information.
We are working on a backup solution to verify your identity. Once we have that in place, we will get in touch with those who didn’t get through the process.

Understanding Credit Scores

A credit score is a 3 digit number, between 300 and 900, that credit bureaus calculate based on information in your credit report. Financial institutions use this number as a simple measure of your creditworthiness. Your credit score plays a very important role in your personal financial well-being, and will be used by financial institutions in conjunction with other information to determine your interest rates and other financial offerings.
Equifax provides the credit scores for our free credit score program. Borrowell pays for the score.
No. There are different credit score models available in the market. For example, there are industry-specific scores, scores primarily used for educational purposes, as well, score models may be based on specific lending criteria. The credit score provided to you by Equifax is intended for your own educational use. The score provided to you by Borrowell is used to present you with tailored personal finance information, recommendations and offers.
Both scores are proprietary to Equifax and powered by Equifax’s comprehensive and unique data assets. The credit score you received from the Borrowell website is generated by Equifax, and the credit score obtained directly from Equifax uses a slightly different model for weighing credit score factors.
One score is not more correct than another score. As mentioned above, there are many score models available in the market from credit reporting agencies like Equifax.

Lenders such as Borrowell select the Equifax credit score model based on its own proprietary lending requirements.

The Equifax credit score is based on an Equifax proprietary score model and may not be the same as the scores used by third parties to assess creditworthiness. The Equifax
credit score is intended for Canadian consumers’ educational use, however, the credit score is also commercially available to third parties along with numerous other credit scores and models in the marketplace.
Borrowell’s credit score tracker shows you changes in your Equifax credit score. Each time we refresh your credit score we will show you how your score has changed compared to your last score refresh. Tracking your credit score gives you a good understanding of how your credit score is trending overtime.
Your credit score is a snapshot of your financial health, at a specific point in time. Therefore, it is not uncommon for it to fluctuate from day to day.
Generally speaking the higher your credit score, the better. However, each financial institution determines what credit score range it considers to be a high credit risk and a low credit risk.
Your credit score is calculated by weighing different factors from your credit report. The most important factors that go into determining your credit score are:

– Payment History – What is your track record of making on-time payments?

– Amount of Credit You Owe – What are the balances on your credit accounts?

– Utilization of Credit – How close are your balances to your credit limits?

– Length of Credit History – How long have you been building your credit history?

– Searching for New Credit – Are you looking to take on more debt?

– Credit Mix – What type of credit do you have and is it a good mix?

Knowing what goes into your credit score can help you monitor it and improve it, if necessary.

Your credit score is the number that financial institutions and other parties will use to evaluate the level of risk you present as a customer. They’re most commonly used on credit card and loan applications, but are becoming increasingly more used by employers, landlords, insurers and mobile phone providers. Knowing and understanding your credit score is the first step in taking control of your financial future. In general, a higher credit score can get you a higher limit, lower rates or other preferential terms.
To order your free credit report by phone, call Equifax at 1-800-465-7166 and they will mail it to you.

If you want to get your report right away, you can purchase your credit report from Equifax Canada here.

If your credit score is lower than you want it to be, there are several things you can do to improve it, including:

– Pay all your bills on time to avoid late payment penalties

– Check your credit report for factual errors and correct them with the credit bureau

– Pay down your credit cards (and other revolving debt) to reduce your credit usage

– Make more than minimum payment on your credit cards to reduce your balance faster

-Ask your financial institutions for higher credits limits to reduce your credit utilization

– Be cautious when seeking additional credit and take on additional credit wisely

– Carry different types of credit, e.g. personal loans, credit cards, lines of credit

For more information, see our blog post “8 Ways To Improve Your Credit Score” or sign up for our free 7 week email course on how to improve your credit score.

Lenders use credit scores along with a variety of other types of information — such as data included on the credit application (for example, income, how long a consumer has lived at a residence, employment status, other banking relationships) in their loan evaluation process.

Personal Loan FAQs

Am I Eligible To Get A Loan?

In order to qualify for a loan, you must:
-be a Canadian citizen or resident
-have reached the age of majority in the province where you reside
-have a valid account with a Canadian bank or other financial institution
-have a valid email address
-have a credit score above 660
-no bankruptcy, consumer proposal, collections or current delinquencies on file
-have a minimum credit history of 12 months
We’re able to provide loans to residents of all provinces except Quebec and Saskatchewan. At present we’re not able to offer loans to residents of the Northwest Territories, Nunavut or Yukon.

You must be the age of majority in the province where you live. The age of majority is 18 in Alberta, Manitoba, Ontario and Prince Edward Island. The age of majority is 19 in British Columbia, New Brunswick, Newfoundland and Nova Scotia. At present, you must live in one of these provinces in order to qualify for a loan through Borrowell.

The minimum credit score you need to qualify for a loan option is 660.

Two credit bureaus, Equifax and TransUnion, provide credit scores that range from 300 to 900 (the higher the better). About 85% of Canadians have a credit score of 660 or higher.

In addition to credit score, our process takes into account a number of additional factors including your income, how much credit you have access to, and the amount of debt you carry. So even if you have a credit score of 660 or higher, it may not be possible for us to present you with a loan option at this time.

To qualify for a loan from Borrowell, you need to have a minimum yearly income of $20,000 before taxes. You’ll need to verify your income with pay stubs or the Notice of Assessment from your two most recent tax returns.
We accept employment, self-employment, business, investment, rental and pension income. Income needs to be verified by providing two recent pay stubs or the last two Notices of Assessment from your personal tax returns.
There are a number of different reasons why you might not have received a loan option. Here are a few of them:

You may have what’s called a “thin credit file” – not enough information on your credit report for our scoring purposes.
You may not meet some our lending criteria, such as 12 months of credit history and a credit score of 660 or above. We also look at your income, how much credit you have access to, and the amount of debt you carry.
If you have a bankruptcy, consumer proposal, collections or delinquencies on your account, we will not be able to give you a loan.
If you applied and didn’t receive a loan option, we’re sorry that we aren’t able to help you at this time.

You may want to get a copy of your credit report from Equifax or TransUnion to make sure the information on your credit report is correct.

Even if you have a credit score above 660, there are a number of different reasons why you might not have received a loan option:

– You may have what’s called a “thin credit file” – not enough information on your credit report for our scoring purposes.

– You may not meet some our lending criteria, such as 12 months of credit history. We also look at your income, how much credit you have access to, and the amount of debt you carry.

If you applied and didn’t receive a loan option, we’re sorry that we aren’t able to help you at this time.

Applying For A Loan

No, checking your rate does not affect your credit score. We do what’s called a “soft inquiry” when you check your rate.
Borrowing at Borrowell is simple, secure and convenient. Start by checking your rate at www.borrowell.com.

If you qualify, you’ll receive two loan options – a 3 year term and a 5 year term. In each case you’ll find out how much you’ve been approved for, your interest rate and your fixed monthly payment. Select the one that suits you best.

You’ll then need to complete three additional steps: answering a few questions about your identity, providing proof of income, and verifying your bank account.

For proof of income, you can upload or email us your two most recent paystubs. Feel free to take a photo if that’s easier. (No paystub? You can submit the Notice of Assessment from your last two tax returns instead.)

To verify your bank account, we use VersaPay, a leading provider of payment solutions. You’ll create a VersaPay account and input your bank and branch (transit) number. To ensure that the banking information you added is correct, a small amount will be deposited and credited to your bank account and an email will be sent when your account is ready to be verified. This can take 1-3 business days.

When the proof of income and bank verification is completed, we’ll email you so that you can review and accept your loan documents. We’ll then deposit the funds directly into your bank account.

Once you’ve submitted your proof of income, verified your bank account and accepted your loan documents, your money will be directly deposited into your verified bank account.
The Annual Percentage Rate (APR) allows you to compare the total cost of credit from different loan options. For Borrowell, the APR includes two things: the interest you pay, and the one-time origination fee you pay us for arranging and servicing your loan.

Borrowell loans offer fixed interest rates, so your monthly payment will never go up.

You can apply for loans between $1,000 and $35,000, in increments of $100.
The loan size is limited based on your income and debt levels. While you can ask for up to $35,000, you may be approved for a loan amount lower than what you request.
If you qualify, we’ll present you with two potential loan options – a 3 year term and a 5 year term. We’ll show you the loan amount, interest rate and fixed monthly payment. You can accept right away to begin the verification process, or come back within the week. (After 7 days, your loan options will expire and you’ll need to apply again.)

Rates and Fees

When you check your rate for a loan through Borrowell, you’ll find out right away if you’re eligible to receive a loan option. Those who qualify will find out their loan amount, interest rate, origination fee and annual percentage rate (“APR” – which includes all fees). Borrowell interest rates start from 5.6% APR for the best credit borrowers. Our average APR is around 11-12%.

A credit score above 660 is required to qualify for a personal loan from Borrowell. The Borrowell interest rate is an estimate annual percentage rate including the origination fee. Your rate may be different. Borrowell does not guarantee applicability regarding your individual circumstances.
In order to give you the lowest possible interest rate, we charge a one-time “origination fee” that covers the costs of finding customer like you, evaluating loan applications, building and operating our processing platform, and providing amazing customer service. We feel this is a clear and transparent way to be upfront about how we get paid for the service we provide. The interest you pay gets returned to the lender that provides the funds.
The one-time origination fee is between 1-5% of your loan amount. The percentage depends on the term of the loan (3 year loans have a lower fee) and your loan grade – the better your credit profile, the lower your origination fee.
There is never any cost to get a quote. It’s free to apply and you’ll find out right away if you qualify, along with the loan amount, interest rate, and monthly payment.
We will add the origination fee to the approved loan amount. For example, if you’re approved for a $5,000 loan at a 2% origination fee, your total loan amount would be $5,100. You would receive $5,000 in your bank account and pay the origination fee off with the rest of your loan. We never ask for funds from you before we give you your loan.
There are no fees or penalties to make extra payments or to repay your entire loan early.
As long as there are enough funds in your account when your payments are due, there are no other fees. If there aren’t enough funds in your bank account to cover your payment when it is due, we will charge a $25 NSF (Non-Sufficient Funds) fee. This fee is to cover the costs we have to pay because of the unsuccessful payment. We do not make money from NSF fees.

Verification and Funding

For proof of income, you can submit your two most recent pay stubs. If you don’t have pay stubs that reflect your income, you can submit the Notices of Assessment from your last two tax returns. In some cases, we may request additional documents.

You can take photos or scan paper copies if you don’t already have electronic statements. To submit them, you can either upload them on our website after logging into your account, or you can email them to service@borrowell.com.

We use VersaPay, a leading provider of payment solutions, to verify your bank account, deliver the funds and to collect payments. We’ll connect you to VersaPay, where you’ll need to input your bank account number, including the institution number, transit (branch) number and your account number. This information can be found on your cheques or by contacting your bank.

VersaPay will then deposit and credit a small, random amount to your bank account. You’ll receive an email you when your account is ready to be verified. After checking the amount that was deposited, you’ll go back to VersaPay’s website to input the amount and verify your account.

Here’s a list of major financial institutions and their institution numbers:
Bank of Montreal: 001
Canadian Imperial Bank of Commerce (CIBC): 010
National Bank of Canada: 006
President’s Choice Financial: 326
Royal Bank of Canada: 003
Scotiabank: 002
Toronto-Dominion Canada Trust: 004

You’ll have one week to submit your proof of income, verify your bank account, and accept the loan agreement. Because the bank verification can take 1-2 days, we recommend you get started right away. If you have any issues or questions, please email service@borrowell.com.
After you’ve verified your bank account and we’ve checked that your income matches the amount you provided to us on your application, we’ll email to let you know that you can accept your loan documents. You’ll get a link to your documents and can sign them electronically – no printer required! Once they’re signed, you’ll receive copies via email for your records. Your money will then be directly deposited into your bank account within 1-3 business days.

Repaying My Loan

Your monthly payment will be taken out automatically each month, from the same bank account where we deposited your funds. We’ll send you a reminder email 3 days before your payment is due so you can make sure you have the funds in your account.
Yes, you can pay off your entire loan at any time with no prepayment penalties or fees.
You can make additional payments on your loan without any prepayment penalties. You can also repay your loan in full at any time.

To make an extra payment, email us at service@borrowell.com or call us at 1-888-285-0990. Please let us know:
– your loan number
– the payment amount
– the date of the payment

Please give us at least 3 business days’ notice to process your additional payment.

You can repay your loan in full at any time without any prepayment penalties.

The fastest way is to call us at 1-888-285-0990 so that we can provide you with the amount you would have to pay, set the payment date and get your confirmation to do so.

You can also email us at service@borrowell.com. Please let us know:
– your loan number
– the date you would like to make the full repayment

We’ll respond letting you know how much the payment would be, which you’ll need to confirm in order for us to process the payment.

We’ll send you a reminder email 3 business days before your payment is due. If you don’t have enough funds in your account on the payment date, we’ll charge you an NSF (non-sufficient funds) fee of $25 to cover associated costs.
After your loan agreement has been issued, we cannot increase your loan amount.

Existing customers may be considered for a second loan after they have made 6 months of on-time payments. Second loans are approved on a case by case basis.

If you are interested in getting a second loan, please email service@borrowell.com or call 1-888-285-0990.

Setting Up VersaPay To Verify My Bank Account

After selecting your loan term, an email will automatically be sent to the email address supplied in your application. You will select Review this Agreement to be taken to Versapay. A Debit Agreement page will be presented. On the debit agreement page you will be asked to enter your bank account information. Don’t worry, all of your information will be securely stored:

You will then be asked to set up a VersaPay account and to review and to agree to the debit agreement.
After reviewing and agreeing to the debit agreement you will be provided an instructions page which advises the steps to verify bank information. A small amount (micro-deposit) will be put into and taken out of your account. You confirm the amount so we know we’re putting money into the right account.

You’re Almost Finished!
It will take approximately 24 hours for the verification micro-deposit to appear in your bank account. A reminder email will be sent to you to remind you to check your bank account. Upon checking this amount in your account, you will log back into your VersaPay account to enter the deposit info and confirm your identity.

Donezo!

If the amount you enter accurately matches the micro-deposit provided your bank account is verified. Woo-hoo! You are on your way to getting your money and borrowing well.