People often acquire loans to fulfill their needs and desires to bridge the financial gap. Loans can be obtained for a variety of reasons including the purchase of a home a car or an education and short-term personal loans for good credit are also accessible. All financial institutions NBFCs and banks make loans to applicants based on their eligibility and the borrower's eligibility is determined by their credit score. If a person's credit score is strong the chances of receiving loans quickly sanctioned at reduced interest rates increase.

So let us understand first what is a credit score and how it is calculated and why it is so important.

What exactly is a credit score?

A credit score is a number that lenders and financial organizations use to measure your creditworthiness. It is intended to demonstrate a person's "creditworthiness" or ability to repay a debt loan or mortgage.

What is the function of a credit score?

A person's credit score is typically expressed as a three-digit figure ranging from 300 to 900 (with 900 being the highest achievable) depending on their unique payback history credit files loan history and other factors.

When you apply for a loan banks and other lending organizations will look at this number to establish your credit risk. This relates to your chances of paying your payments on time and can influence whether or not you are approved for a loan.

Your credit score will also influence the loan amounts that are granted as well as the interest rate. If your credit score is extremely poor the lender may even decline your loan application.

How is your score determined?

As previously stated a person's credit score ranges from 300 to 900. (with 900 being the highest score possible). Small businesses can have credit scores which are determined on a scale of 0 to 300.

An algorithm determines credit scores. This makes use of the information such as your payment history the debt amount and credit history length. Here are the following factors that are taken into account:

1. History of payments.
2. Utilization of credit.
3. Credit period.
4. Credit inquiries.
5. Credit allocation.

What Exactly Is a Good Credit Score?

Because different credit bureaus employ different scoring algorithms to calculate credit scores yours may differ depending on which credit bureau provides your credit report. Credit score ranges in general are as follows:

1. Poor = 300-579
2. Fair = 580-669
3. Good = 670-739
4. Very Good = 740-799
5. Excellent = 800-850

A credit score of 700-750 or more is generally regarded as good.

Howevereach lending institution has its risk grading system. For example one bank may consider a score of 700 or higher to be good whilst another bank may prefer a score of 750 or higher. In most cases a score of 750 to 800 should be regarded as adequate.

One such company that provides free credit scores to its user is Borrowell. Now let’s understand what is Borrowell and its significance in the financial market. Furthermore we discuss its features and how it is helping Canadians with their finances.

Before the recent fintech revolution many Canadians in need of financial services could only turn to the big banks. It never hurts to have options when it comes to making personal money decisions. Borrowell is one startup that believes in this.

What exactly is Borrowell?

It is a digital lending platform that provides a variety of products and services to Canadians. It offers free credit scores bill tracking credit cards personal loans mortgages banking and insurance.

According to its official website it began in 2014 with the stated purpose of assisting consumers in making outstanding credit decisions. It is doing its best in this regard by providing consumers with a free monthly credit score and report through Equifax to assist Canadians in staying on top of their credit. It believes in utilizing cutting-edge technology for the services it delivers hence it has developed Canada's first AI-powered Credit Coach.

Borrowell Features & Benefits

1. It provides personal loans of up to $35000.
2. It offers free weekly credit scores and credit reports in one convenient location.
3. Borrowell offers personalized product recommendations from a network of over 50 partners.
4. The loan application and approval process are entirely online.
5. To deliver credit education it has created an AI-powered Credit Coach.
6. It allows you to repay your debt for 3 to 5 years.
7. With 256-bit encryption it provides bank-level protection keeping your information safe and secure.

Eligibility and Requirements for Borrowell Loans

1. You must be a Canadian citizen.
2. The minimum age eligibility is 18.
3. Have a Canadian bank account.
4. A credit history of at least 12 months is required.
5. At least a credit score of 660 is required.
6. There are no bankruptcies consumer proposals collections or delinquencies on your credit report.
7. Your annual income must be at least $20000 per year.
8. Have at least two recent pay stubs or two Notices of Assessment to prove your income from self-employment/business/investment/pension.

Borrowell Products & Services

As previously stated it is a one-stop shop for all types of loans and other services such as free credit scores free bill tracking credit cards personal loans mortgages banking and insurance.

Borrowell Free Credit Score and Credit Report

Borrowell Free Credit Score has the following features:

1. Borrowell will provide you with a free credit score check at any moment after you join up.
2. You can also obtain a copy of your Equifax credit report.
3. You will receive products from 50+ partners that are automatically matched to your credit profile.
4. Molly Canada's first AI-powered Credit Coach will provide individualized suggestions articles and tools to help you improve your credit.

How to Get a Free Credit Report and Score

Visit the Borrowell official website and fill out the form with information such as your email address. Make a password for yourself and an account. To authenticate your identity please answer a few basic questions. Enter your SIN here (Social Insurance Number).

Request your free credit score and report.

Interest Rates in Borrowell

The annual percentage rate (APR) ranges from 5.6% to 29.19% (with 11%-12% being the norm).

Borrowell charges an NSF (non-sufficient funds) fee of $25 to $54 to cover associated costs and may charge an extra $28 for the collection business if your loan payment bounces due to insufficient funds in your bank account on the payment date.

Borrowell Home Loans

1. Borrowell can give you a loan through third parties if you are a first-time home buyer. If your credit score is good you can potentially get a cheaper interest rate on a mortgage loan.
2. Borrowell provides a Mortgage Coach and Calculator.
3. Mortgage Coach checks rates from over 40 lenders to discover the best deal for your specific credit profile.
4. Borrowell Mortgage Calculator can assist you in comprehending monthly payments and interest rates.

Conclusion

Through this post you have learned about the different types of services provided by Borrowell. But when you choose a Borrowell credit card and Personal Loan you need to be more careful. If you think that the Borrowell card meets all of your needs including fees you can get it.

In the case of a loan you should carefully figure out things like how much the interest will change and how much extra you will have to pay off the loan. Check and figure it out carefully and if you're happy with it you can choose a loan from Borrowell.