Canadian marketplace lender Borrowell has tied up with Equifax Canada to allow free access to credit scores via the Borrowell website.
Andrew Graham, CEO of the platform, tells us that this is a first for Canadian consumers. He says that giving consumers access to “better information” is very much “on-mission” for the company, while also flagging the partnership as a potential source of lead generation. But consumers will not need to apply for credit in order access their credit scores.
The newly launched service also provides users with information about the factors that may be impacting their credit scores and about how to improve their overall creditworthiness. Borrowell will provide consumers with an updated score once every three months, allowing them to keep close tabs on their progress.
A 2015 survey by BMO Bank of Montreal found that approximately 56% of Canadians have never checked their credit score, with only 14% claiming to check it at least once a year. The tag-team of Borrowell and Equifax will be hoping to change that.
“We’re excited to partner with Borrowell to bring this game-changing financial service to Canadians,” said Chris Briggs, Chief Marketing Officer, Equifax Canada. “Accessing a credit score can be an important first step for a consumer on his or her financial journey – in helping them better understand their personal financial situation. Our decision to work with Borrowell is based on our mutually similar desire to work with consumers to provide them with the information they need to get started on the path toward financial wellness.”
Borrowell closed a $6.4m fundraise in February, which we surmised to be comprised of both debt and equity funding. Power Financial – a major global player in insurance and wealth management – was involved in the round. Borrowell CEO Andrew Graham said of the Equifax tie-up: “In talking to consumers everyday, we came to realize that many Canadians don’t know their current credit score, or how to improve it. The reality is that lenders across the country use credit scores to decide who qualifies for loans and at what price. By providing Canadians with their scores and educational resources on how to improve them, Canadians will have better options when it comes to accessing credit.”