When you’re looking to get a low-interest rate loan in Canada, it’s important to have a good credit score.
To ensure you have a good credit score, you need to check it frequently and also look for ways of improving it.
Fortunately, there are now several free credit score providers in Canada that allow you to check and track your credit score to see if it has improved or not.
If you’re looking to check your credit score for free, you might be wondering which service to use.
When it comes to free credit scores in Canada, Borrowell and Credit Karma are two popular options available in Canada. So which one is better? Let’s take a deeper look and find out.
In this post, we’ll compare Borrowell vs Credit Karma’s key features so you can decide which one is right for you.
So let’s get into the details!
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Borrowell is a Canadian company based in Toronto, Ontario, Canada. The company was established in 2014.
Since its inception, Borrowell has been helping thousands of Canadians improve their financial health and reach their financial goals.
To help Canadians achieve these goals, the company offers free credit score and credit report services.
Also, the company offers recommendations on several financial products such as personal loans, mortgage products, and investment products.
By offering these products and services, Borrowell is able to help its users take control of their finances and make informed decisions about their money.
The company is committed to providing transparent, impartial, and unbiased information to its users so that they can make informed financial decisions.
Therefore, if you’re looking for a way to improve your financial health, Borrowell may be a great resource.
As mentioned above, Borrowell offers several financial products to help you meet your financial objectives.
Let’s look at the financial products offered by Borrowell:
1. Credit Score Services
Borrowell offers free credit score and credit report services to thousands of Canadians.
The company uses Equifax’s proprietary credit scoring model to generate its reports, making it one of the most accurate and reliable sources of information when it comes to credit scores.
In addition to offering weekly updates, Borrowell also provides tools and resources to help users improve their credit scores.
These include tips on how to manage debt, advice on using credit wisely, and other resources that allow users to see how different actions will impact their scores.
This can be extremely helpful for those who are looking to take out a personal loan, line of credit or other types of loans in the near future.
Overall, Borrowell is an excellent resource for anyone looking to better understand their financial situation and take steps to improve their credit score.
2. Rent Advantage
For renters, one of the biggest challenges in building good credit is that rent payments are not typically reported to credit agencies.
This makes it difficult to demonstrate responsible financial behaviour and can make it harder to qualify for loans or other types of credit in the future.
Borrowell Rent Advantage is a great solution for tenants who want to improve their credit scores.
With Borrowell Rent Advantage, you can report your rent payments for just $5 a month without permission from your landlord.
This is an easy way to demonstrate your responsibility and commitment to making payments on time each month.
Also, by signing up for this Borrowell product, you’ll be able to track your progress and see the impact that reporting your rent payments has on your credit score.
The best part about the product is that you can opt-out of the service at any time without incurring any cancellation charges.
However, the drawback of Borrowell’s Rent Advantage product is that, as of the time of writing this article, Borrowell’s Rent Advantage is restricted to only specific members.
Nevertheless, if you’re looking for a simple and affordable way to improve your credit score as a tenant, Borrowell Rent Advantage is a great option.
All you have to do is sign up for Borrowell and confirm if you are eligible to benefit from this great product.
3. Credit Builder
Borrowell Credit Builder is a unique product that can help you build credit. As opposed to a traditional loan, you don’t receive any money upfront.
Rather, your regular payments are reported to Equifax Canada. By making regular payments on the loan, you’ll be able to demonstrate your financial responsibility to Equifax Canada.
And because the loan is secured, you don’t have to worry about defaulting on the loan and damaging your credit further.
This can help you build a positive credit history, which is essential for accessing loans, credit cards and more.
Now you may be wondering how the Borrowell Credit Builder works. Here is how the product work:
It’s a secured loan of $240 that lasts for 36 months. When you sign up for the product, you will be required to pay $10 per month for 24 months.
For each $10 payment you make, $5 goes for the subscription fee and the other $5 is put aside for you as your savings.
Also, you will make payments of $10 for an additional 12 months. However, for this period, all the $10 will be saved for you.
The total money that will be saved for you in 24 months will be $120 and in the remaining 12 months, another $120 will be saved for you.
At the end of the 36 months, you have saved a total of $240. Once you complete the period, your $240 will be paid straight into your bank account.
With Borrowell Credit Builder, you can take control of your financial future and start building a strong credit history.
4. Borrowell Financial Products Recommendations
Borrowell provides recommendations for financial products based on your credit profile.
Borrowell recommends more than 50 financial products which are offered by some of the best financial organizations in Canada.
The company’s recommendations are personalized to each customer, and they are always updated as your credit profile changes.
Borrowell has a team of product experts who are constantly looking for new products to recommend to users.
The goal is to always have the best products for each customer’s unique situation.
Therefore, if you are looking for a financial product, Borrowell can give you recommendations based on your unique profile.
The following is a list of the various financial products recommendations you can get from Borrowell:
- Credit cards
- Investing products
How Does Borrowell Make Money?
Borrowell is a free financial company that helps Canadians make smarter decisions with their money.
If you’re like most people, you may probably be wondering how Borrowell can offer free services.
After all, nothing in life is truly free. Why would a company offer free services like credit monitoring and personalized loan recommendations?
The answer is that Borrowell makes money from the financial products it recommends to its customers.
When you sign up for one of the products it recommends, the company earns an affiliate commission. This allows Borrowell to continue offering its services for free.
Now that you know how Borrowell makes money, hopefully, you can be confident that you’re getting the best recommendations without any hidden fees.
LEARN MORE: Borrowell Review
Credit Karma Overview
Credit Karma is a fintech company that is based in the US and was launched in 2007.
Since Credit Karma extended its offerings to Canada, it has become one of the top companies when it comes to free credit score services in the country.
Credit Karma allows users to access their TransUnion credit score and credit report for free, as well as offering personalized recommendations on how to improve their credit health.
The company also provides free tools and resources to help users track their progress and avoid common traps that can damage their credit scores.
In addition to its credit score services, Credit Karma also provides Canadians with access to personal loans and other financial products.
Whether you’re looking to understand your credit score or find a better deal on a loan, Credit Karma can be a great resource for you.
Credit Karma Products
Let’s take a look are the financial products offered by Credit Karma at the time of writing this article:
1. Credit Score Services
Credit Karma is a trusted resource for information about credit scores, and it provides users with an easy way to monitor their credit profiles.
The company’s mission is to help people make financial progress, and it offers a variety of tools and resources to help its users stay on top of their finances.
Credit Karma provides Canadians with free access to their TransUnion credit scores, as well as weekly updates so they can track their progress.
The company also offers tools and resources to help you have a better understanding of your credit scores and how to improve them.
2. Credit Cards
Credit Karma is best known for providing free credit score services. However, the company also offers a wide range of products, including credit cards.
Credit Karma’s credit card offerings include unsecured, secured, bad credit cards and student credit cards. This variety ensures that there is a card for every type of credit history.
Also, Credit Karma’s website makes it easy to compare features and rates for each card, making it simple to find the best option for your needs.
For all these reasons, Credit Karma is a great option for anyone looking for a new credit card.
Whether you’re looking for a card to help build your credit or a card with great rewards, Credit Karma has you covered.
3. Personal Loans
Credit Karma also offers its customers a range of personal loan options through its partnership with LoanConnect.
LoanConnect is a Canadian loan company that offers short-term and long-term loans of up to $50,000.
You can use the Credit Karma website to look for a LoanConnect loan that suits your needs.
The process is entirely online and the application process is quick and easy, and you should receive a decision within minutes.
Once you have been approved for a loan, the funds will be deposited directly into your bank account.
The best part is that the loans are unsecured, meaning you don’t need to put up any collateral.
Also, they have fixed interest rates so you know exactly how much you’ll be paying each month.
In addition, LoanConnect works with lenders that offer competitive interest rates and flexible repayment terms, so you can find a loan that fits your needs.
Whether you are looking to finance a purchase, or cover unexpected expenses, Credit Karma personal loans can provide the funds you need.
If you’re in the market for a mortgage, Credit Karma can help you find the best rates and terms to suit your needs.
Through its partnership with Nesto, a mortgage broker, Credit Karma offers access to a wide range of mortgages.
Nesto works with multiple lenders to get pre-negotiated rates for Credit Karma users, so they can compare different options and choose the best one for their needs.
By partnering with Nesto, Credit Karma is making it easier for its users to find the right mortgage and save money on their loans.
So whether you’re a first-time homebuyer or looking to refinance your existing mortgage, Credit Karma can help you save money on your home loan.
How Does Credit Karma Make Money?
Credit Karma is a free service that helps users track their credit scores and manage their finances.
So how does Credit Karma make money? It’s pretty simple. Just like Borrowell, Credit Karma earns commissions from the financial products it recommends to its customers.
Whenever you purchase a product that’s been recommended by Credit Karma, the company will earn a commission.
There’s no additional cost to you as the consumer. This is how Credit Karma is able to provide its services for free.
LEARN MORE: Credit Karma Review
Borrowell vs Credit Karma Key Features Compared
Now that you have a better understanding of Borrowell and Credit Karma, let’s compare the two companies so that you can choose one that best suits your needs.
|Credit score services
|Frequency of Report
|Rent Advantage, Credit Builder, Banking, insurance, mortgages and investing products
From the above table, you probably must have identified the obvious differences between the two financial companies.
Nevertheless, let’s have a detailed comparison of Borrowell vs Credit Karma so that you can make an informed financial decision.
Borrowell vs Credit Karma: Credit Score Services
Both websites provide a free credit score check and weekly updates. They also offer personalized tips and advice on how to improve your score.
Although both Credit Karma and Borrowell offer credit score services, there is a key difference between the two.
Borrowell uses Equifax to offer you a free credit score, while Credit Karma uses TransUnion.
This means that the scores you get from each financial company may be slightly different.
Overall, both Borrowell and Credit Karma are valuable resources for anyone looking to check and better understand and improve their credit health.
Borrowell vs Credit Karma: Credit Bureaus
Borrowell uses Equifax to provide you with free credit scores while Credit Karma uses TransUnion to provide you with your credit score.
Both Equifax and Transunion are prominent credit bureau services in Canada.
While both Equifax and Transunion are reliable credit bureau services, the results you get from each one may slightly differ.
This is because both Equifax and Transunion use different models to calculate credit scores.
Ultimately, both companies offer accurate and reliable information about your credit score and report.
It is up to you to decide which company to use based on your personal needs and preferences.
Borrowell vs Credit Karma: Security
When it comes to security, both Borrowell and Credit Karma take similar approaches. Both companies use advanced encryption to protect customer information.
However, there is one key difference: Borrowell uses 256-bit encryption. Credit Karma, on the other hand, uses 128-bit encryption.
As a result, using either Borrowell or Credit Karma means your data is safe.
Additionally, neither Borrowell nor Credit Karma conducts a hard credit check on your credit history, so your credit score will not be affected.
Borrowell vs Credit Karma: Additional Features
Borrowell and Credit Karma are both popular credit monitoring services that can help you keep track of your credit score and report any changes.
When it comes to credit monitoring, both Borrowell and Credit Karma offer a variety of features to help users stay on top of their credit scores.
However, Borrowell goes a step beyond Credit Karma with its additional features, including Rent Advantage and Credit Builder.
As a result, Borrowell is the better choice for those looking for comprehensive credit service and product recommendations.
Credit Karma vs Borrowell: Which One Should You Choose?
Now that we have compared the key features of Borrowell to that of Credit Karma, the question is which one should you choose?
If you’re trying to decide between Credit Karma and Borrowell, there are a few key things to keep in mind.
Credit Karma and Borrowell are both fintech companies that offer free credit score services.
However, as you can see above there are some key differences between the two services.
Credit Karma uses the TransUnion credit scoring model, while Borrowell uses the Equifax model.
As a result, your credit score may be different depending on which service you use.
If you’re looking for a complete picture of your credit history, you may use both services.
However, Borrowell offers more products than Credit Karma, including insurance and investment products. So, if you’re looking for a one-stop shop, Borrowell is the way to go.
Ultimately, the decision comes down to what’s most important to you and which company can best meet your needs.
Final Thoughts on Borrowell vs Credit Review
All in all, both Credit Karma and Borrowell are leading providers in the field of free credit scores.
However, as you can see above, they have some differences that may be important to consider when making your choice.
The choice of which one is better for you will depend on what features and benefits you find most valuable.
If TransUnion’s credit result is what you are looking for, then Credit Karma might be a better option for you.
On the other hand, if you are looking to get your free Equifax credit score, then Borrowell might be the better choice for you.
However, using both service providers will give you a comprehensive picture of your credit history.
Ultimately, if you’re looking for a way to improve your overall financial situation and plan for the future, then you should consider checking out either one of these services.