Credit Builder is a 36-month product designed to help you build your credit and payment history by reporting your payments to the credit bureaus. Your monthly payments are reported to Equifax Canada. Making on-time payments has a positive effect on your payment history, which impacts ~35% of your overall credit score. Please note that all payments (including missed payments) are reported to the credit bureaus. To benefit from this product, it’s important to make your Credit Builder payments on time!
The types of credit or tradelines you have on your credit report also determine ~10% of your overall score. If you find the type of credit you hold is mainly credit cards, having Credit Builder on your credit report can help. Credit Builder is an instalment loan and is reported to Equifax Canada as such. It will show the bureau that you can handle different types of credit and not just credit cards. Borrowell doesn’t guarantee credit score improvement, which is dependent on a number of factors such as payment history.