Borrowell Credit Builder Review: Boost Your Score Without Borrowing?

Is your credit in the crapper? It might be time to try the new Borrowell Credit Builder program. This handy new feature could help boost your score without borrowing a dime. No hard credit check, no debt, and no commitment required. It kind of feels like they just handed us another set of keys to the credit kingdom. And the best part? These keys open a safe with some cold hard cash in it too! Ready to revamp that cringe credit score and mank bank in the process? Here’s what to know about the new Borrowell Credit Builder program that builds and saves.

Why Is Good Credit Important?

Channelling my inner Jack White, “I’ve said it once before but it bears repeating”: your credit score is the gatekeeper to financial wellness. It dictates everything from getting a basic credit card to getting approved for an apartment, mortgage, car loan, and even whether or not you land your dream job.?

In the not-so-distant past, the only way to build credit was to access it. But you couldn’t access it unless you already had good credit. Welcome to the most epic catch-22 ever. That left credit-challenged people at the mercy of subprime lenders, or worse, shady loan sharks charging obscene interest rates. Uh, debt trap much?

What Is The Borrowell Credit Builder Program??

If you’ve been struggling to build or improve your credit score, Borrowell now offers a tool that completely sidesteps this age-old conundrum. The Borrowell Credit Builder program is designed to help you build your credit score through responsible borrowing. Only, you’re not actually borrowing anything.?

Unlike a traditional installment loan, no cash is given to you upfront. Instead, a portion of your payments are set aside, like deposits to a savings account. At the end of the term, you get a decent chunk of cash returned to you.?

How Does Borrowell Credit Builder Work?

The Borrowell Credit Builder program offers 3 different plans to suit your budget and goals: Starter, Plus, and Pro. Each program offers different payment amounts and savings potential. Even though you get to choose your own adventure, the term is always 36 months (3 years).

Zero Interest Doesn’t Mean Zero APR

The Annual Percentage Rate, or APR, is a crucial factor to consider when evaluating loan offers, including innovative credit-building tools that boast 0% interest rates. It represents the annualized cost of borrowing, expressed as a percentage. While the Borrowell Credit Builder program requires you to pay a monthly fee instead of traditional interest charges, that monthly fee is still a component of the overall cost of credit.?

Can Anyone Use Borrowell Credit Builder?

Unfortunately, no. Not just anyone can use the Borrowell Credit Builder program. First of all, it’s not available in Quebec, Saskatchewan, and New Brunswick. Bummer, I know. But if you live anywhere else in Canada, you can use the program if:?

• You’re a Canadian citizen or permanent resident
• You’re currently living in Canada (in an eligible province or territory)
• You’re the age of majority in the province where you live?
• Have a credit file that is at least 6 months old
• Have at least 2 tradelines on your Equifax credit file (credit card, loan, line of credit, etc.)

Just create a free account, then sign up for Credit Builder through the app or online. They’ll ask you a few questions, request a piece of government-issued photo identification, and perform a soft credit check – don’t worry, it won’t hurt your credit score. The entire process takes just a few minutes. Make sure you have your bank account information handy because you’ll need that to set up automatic payments.?

Is Borrowell Credit Builder Right For Me?

Still on the fence? Borrowell Credit Builder is ideally suited for people who are looking to improve their credit scores and build a stronger financial profile. Its structure, which uses monthly fees as part of the credit-building process, makes it an effective tool if you’re comfortable with regular payments and are committed to long-term credit improvement.?

Personally, I love the emphasis on saving money alongside credit building. This makes it a powerful way to develop healthier financial habits – especially if you respond well to incentives, like getting rewarded for all your hard work with a nice lump of cold hard cash. Not to mention, it reports as an instalment loan on your credit report rather than a line of credit, which helps diversify your credit mix – giving your score a little extra oomph on top of your payment history.?

This article is the shortened version of an article originally published on Hardbacon.ca by Heidi Unrau under the title "Borrowell Credit Builder Review : Boost Your Score Without Borrowing?".