Borrowell Credit Builder is a secured instalment loan, where you make fixed payments each month that are reported to Equifax Canada, helping you build your credit history. With Credit Builder, you know exactly what amount you’re contributing each month over a 36-month term, and your Credit Builder savings to date.
On the other hand, a secured credit card is a revolving credit product and works similar to a traditional credit card, except you pay a cash deposit upfront as collateral. Your deposit then acts as the card’s credit limit. When you close your secured card, your deposit is returned to you, less any outstanding balances.
Both options are great for individuals who are looking to build their credit history. Credit Builder may be a better fit for you if you do not have a cash deposit available upfront, but can make a monthly payment of at least $30 per month. With Credit Builder, you can start building credit right away! Additionally, if you find your credit report is primarily filled with only credit cards, a product like Credit Builder, which is an installment loan, will show lenders that you can also handle other types of credit.