Borrowell Credit Builder is a secured installment loan designed to help you build credit history through manageable bi-weekly payments. Since payment history (~35%) and credit history length (~15%) together account for about 50% of your overall credit score, a product like Credit Builder can be an effective tool for improving financial health. Making on-time payments through Credit Builder can help offset the impact of any previous late payments on your report. Building good credit can open doors to lower interest rates and better terms on credit cards, mortgages, loans, and more.
Credit Builder is ideal for individuals who:
- Want to improve their credit history to qualify for financial products with better terms, interest rates, and approval chances
- Have little or no credit history
- Are new to Canada and looking to establish credit
- Are recovering from bankruptcy, consumer proposals, or other credit challenges
Credit Builder appears as an installment loan on your credit report, with monthly payment data reported to Equifax Canada to demonstrate creditworthiness. This transparency shows lenders that you can responsibly manage credit payments. Because Credit Builder is a loan, Borrowell reports all payments—including missed payments—to Equifax.
With pre-authorized debit (PAD) arrangements, your payments are automatically withdrawn from your bank account on the scheduled date. This “set-it-and-forget-it” approach helps ensure you never miss a payment, allowing you to focus on building a positive payment history with ease.