Looking for a personal loan in Canada? Borrowell offers access to one of the best personal loans service in the country.
If you meet their basic requirements, you can borrow up to $35,000 at a competitive rate to finance your car purchase, consolidate debt, or pay off your credit card.
This Borrowell personal loans review covers how to apply, the cost of a Borrowell loan, and how to get a free credit score and report.
Who is Borrowell?
Borrowell is a Canadian financial technology company founded in 2014. They were the first to offer free credit scores via their partnership with Equifax and they later extended that offering to also include free credit reports.
In addition to a free credit check, Borrowell provides personal loans and recommendations for credit cards, mortgages, insurance, and other banking products.
As of this writing, more than 1 million Canadians use the platform’s free credit education, personal finance calculators and tools.
Borrowell Personal Loans
Borrowell loans range from $1,000 to $35,000 and they can be obtained for the following purposes:
Debt Consolidation: If you are carrying multiple high-interest debts, you can use a Borrowell loan to consolidate them into one simple and less costly monthly payment.
Car Loan: This loan can be used to purchase a brand new or pre-owned vehicle.
Business Loan: Small business owners can use a Borrowell loan to fund day-to-day business operations.
Credit Card Payoff: A personal loan can be used to quickly pay down your credit card balance. If you qualify for a lower rate than you are paying on your card balance, you could save on interest fees.
Other purposes: This personal loan can also go towards paying for a wedding, home improvement, and more. Some features of a Borrowell loan you should note are:
- Loan term: 3-5 years (36-60 months)
- Loan interest rate: 5.6% to 29.19% APR
- Average loan APR: 11% to 12%
- Minimum loan amount: $1,000
- Maximum loan amount: $35,000
- Prepayment: Yes, without penalty
How To Apply for a Borrowell Loan
The application process for a Borrowell loan is relatively straightforward. The approval process is fast at 1-2 days and you can have funds deposited into your bank account within 48 hours.
Here’s how to apply:
- Visit Borrowell to create a free account.
- Complete the profile questionnaire including your date of birth, phone number, income, and financial goals.
- Borrowell verifies your identity and obtains your credit file (soft check) and make you an offer.
- You can accept the offer and send your bank details and Notice of Assessment from the past two years. A hard credit check occurs after you accept the loan offer.
- They verify your bank account using VersaPay.
After you have received your loan deposit, you are required to make fixed monthly repayments that include principal and interest. You can choose the day of the month that works best for your finances.
To qualify for a Borrowell loan, you must meet the following eligibility criteria:
- Be at least the age of the majority i.e. 18/19 years or older depending on your province of residence
- Have at least 12 months of credit history. A thin credit file makes it difficult to become approved
- Have a credit score greater than 660
- Must not have active delinquencies on your credit report
- Have a credit utilization that is lower than 80%
- Have a debt service ratio that is lower than 48%
- Must earn a minimum of $20,000 per year
- Must not have a bankruptcy, unpaid collections, or consumer proposal on your credit file
A Borrowell loan can be paid off before maturity without penalty.
How Much Does a Borrowell Loan Cost?
The loan interest rates for these loans range from 5.6% to 29.19%. You also pay an origination fee that is 1-5% of your loan amount. The origination fee paid depends on your loan term and strength of your credit profile.
The interest rate you are offered includes both the loan APR and the origination fee.
In addition, you may be levied a fee of $25 to $54 if your loan repayment bounces. This is also referred to as a Non-Sufficient Fund Fee (NSF).
While the top rate for a loan is 29.19%, Borrowell indicates that the average loan rate for most clients is within the 11-12% range.
Personal Loan Payoff Calculator
Is a Borrowell Loan Safe?
Borrowell is a legitimate company and it utilizes bank level security i.e. 256-bit encryption to secure your account.
They are partnered with more than 50 top financial institutions in Canada including EQ Bank, Scotia Bank, Capital One, and BMO.
Lastly, Borrowell has an A+ rating with the Better Business Bureau.
Borrowell vs. LoanConnect vs Mogo Personal Loans
Other companies offering personal loans in Canada are Mogo and LoanConnect.
LoanConnect: This is a loan comparison site where you can compare the rates being offered by various lenders in Canada. Loan rates range from 4.60% APR to 46.96% APR and you can borrow up to $50,000.
Learn more about what they offer in this LoanConnect review.
Mogo: Is a financial technology company offering free credit scores, personal loans, mortgage loans, cryptocurrency trading, and more. MogoLiquid loans are from 5.9% to 45.9% and you can borrow up to $35,000.
Here’s how the three loan services compare:
Mogo Liquid Loan
$1,000 – $35,000
$1,000 – $50,000
$500 – $35,000
5.6% – 29.19%
4.6% – 46.96%
5.9% – 46.96%
3 or 5 years
6 – 60 months
9 months – 5 years
Credit score and report
Free; updated monthly
Free; updated monthly
Mortgages, credit cards, insurance
Bad credit and cash loans
Mortgage, cryptocurrency, prepaid card
Pros and Cons of a Borrowell Loan
There are benefits and downsides to taking a Borrowell loan. The benefits include:
- Fast approval in as little as 2 days if you meet the basic requirements.
- No prepayment penalties and you can choose to make additional lump sum payments at any time.
- Competitive loan interest rate compared to payday loans and other loans for bad credit.
- Free credit score so you don’t have to pay $19.99 to Equifax or TransUnion to get it.
- Access to free credit tips and education on how to improve your credit score.
The downsides of this loan are:
- Loan terms are limited to 3 or 5 years. While you can pay off your loan at any time (i.e. sooner), some other loan providers offer shorter term options.
- The loan eligibility requirements are stiff and require you to have a good credit score of 660 or higher.
- Regular loan repayments are paid monthly. They do not offer weekly or biweekly payment options.
- A loan application requires a hard inquiry into your credit file and this can lower your credit score in the short-term.
Frequently Asked Questions
When you apply to check your free credit score, they conduct a ‘soft check’ and this does not affect your credit score. If you apply for a loan and accept the interest rate offered, a ‘hard inquiry’ occurs and this may affect your credit score, similar to when you apply for a new credit card. When you are shopping for rates on a loan or mortgage, try to limit it to a 30-day window.
You can email them at [email protected] for general inquiries. They also have a contact form you can use on the “Contact Us” page on their website. To submit loan documents, email them to [email protected]. Borrowell has not provided a phone number to call them at.
Credit Karma offers credit services provided by TransUnion, while Borrowell credit scores are provided through Equifax. The credit scores from different credit bureaus may differ due to the different algorithms they use to compute your score. Here’s the deal on TransUnion vs. Equifax credit scores.
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Have a question about personal loans in Canada? Leave them in the comments.