Borrowell adds COVID-19 feature with Equifax to help safeguard credit scores

By Daniel Lanyon on Wednesday 20 May 2020

Alternative Lending

In Canada, since the COVID-19 pandemic began, banks and lenders have received a huge increase in the volume of requests for deferrals on mortgages, car loans and credit cards. Borrowell's new free service tells borrowers whether deferrals are recorded properly.

Borrowell adds COVID-19 feature with Equifax to help safeguard credit scores
Image source: Borrowell/Andrew Graham

Canadian Fintech lender Borrowell, has launched a new feature showing whether payment deferrals are properly recorded on borrowers Equifax credit report. 

Borrowell, which was the first company to provide Canadians with free access to their credit score, will also be the first to launch this service in Canada. 

In Canada, since the COVID-19 pandemic began, banks and lenders have received a huge increase in the volume of requests for deferrals on mortgages, car loans and credit cards. 

If approved, the lender agrees that they will not report payments as missed or late to the credit bureaus; this has caused concern for consumers worried that incorrectly reported programs could hurt their credit, as late payments typically account for 35 per cent of credit scoring models. 

“Canadians need reassurance that the temporary measures they’ve taken won’t have long term consequences on their credit health,” said Andrew Graham, Borrowell’s co-founder and CEO(pictured). 

“During this time of uncertainty, we’re proud to partner with Borrowell to help bring clarity and assurance to Canadians as they navigate their financial decisions,” said Carrie Russell, President of Equifax Canada.

“The credit reporting agencies defined a deferred payment framework which helps protect the credit standing of Canadians while maintaining fair and accurate credit reporting practices.”

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