Borrowell Credit Builder is a secured instalment loan that is a great way to build credit history through monthly payments. With payment history (~35%) and credit history (~15%) contributing to ~50% of your overall score, a product like Credit Builder can help you build your credit history and improve your financial health. The positive credit impacts of on-time payments you make through a credit building product can help to decrease the impact of any negative impact of late payments you might have had in the past. Having good credit can help you qualify for lower interest rates and better offers on credit cards, mortgages, loans and more.
Credit Builder is great for individuals who:
- Want to improve their credit history in order to qualify for new financial products with better terms, interest rates, approval rates
- Have little or no credit history
- Are new to Canada and want to start building credit
- Are recovering from a bankruptcy, consumer proposal, or other delinquency
Credit Builder shows up as an instalment loan on your credit report. Your monthly Credit Builder payments are reported to Equifax Canada to prove creditworthiness and show lenders that you are able to make credit payments responsibly. Because Credit Builder is a loan, Borrowell reports all payments (including missed payments) to Equifax Canada. We make payments easy for you via pre-authorized debit (PAD). Your monthly payment will be automatically withdrawn on your scheduled monthly payment date from the bank account. This allows you to set it and forget it, so you don’t have to worry about missing a payment as you focus on building a positive payment history!