Marble is changing the way Canadians, working through a consumer proposal, are rebuilding their credit. Launched in 2016, Marble has pioneered a socially sustainable credit building product that allows Canadian to get approved for an unsecured loan to pay off their consumer proposal, rebuild their credit, and improve their overall financial health. Marble has helped more than 1,100 Canadian consumers get back to mainstream banking 50% faster than a consumer proposal allows.
We spoke with the Marble team about consumer proposals, rebuilding credit, and how Marble is helping Canadians take back control of their finances.
How does completing a consumer proposal affect one’s credit score?
A consumer proposal significantly affects a consumer’s credit score. Each account included in a consumer proposal will instantly drop down to an R7 credit rating, which is a poor credit ranking of below 450 points that denotes a consumer proposal. Worse still, it can last anywhere from three years to eight years after they’ve paid off the last payment.
Most major banks and lenders won’t lend to anyone with an R7 bad credit rating. So if an individual in a consumer proposal struggles to meet their payments, they won’t be able to receive any financial help through a loan (except through Marble). Two missed consumer proposal payments often mean that they must file for bankruptcy, which is, even more, credit damaging and costly. Consumer proposals appear on the public record section of an individual’s credit report and can be seen by employers, lenders, banks, and potential partners.
What happens to a consumer’s consumer proposal when they transfer to a Marble loan?
When a Marble customer accepts our FastTrack loan, we pay off their entire consumer proposal. That same day, they exit their consumer proposal and see an instant boost of 30 to 70 points to their credit score (increase varies per applicant).
We then work together to remove the damaging long-term effects of a consumer proposal on their credit report as quickly as possible. We do this by reporting their monthly loan payments to the credit bureau and showing that the customer is rebuilding their creditworthiness. Depending on how quickly the customer pays off their consumer proposal, it could be removed from their report in three years, rather than the usual eight years.
Can a consumer expect to see lower payments with a Marble loan?
Our FastTrack loans have flexible terms in order to keep monthly loan payments similar to those associated with a consumer proposal. Monthly payments depend on the size of the loan, of course, so if a customer only has $5,000 left to pay off on their consumer proposal, for example, they will owe less than $200 per month. We give 4% back if a customer pays off their loan in 24 months.
Why is a Marble loan more beneficial to an individual’s credit health?
A Marble FastTrack loan helps customers get back to a healthy, sustainable financial situation faster. As we mentioned earlier, a consumer proposal can remain on their credit report for three to eight years after they’ve paid off the last payment. We help them get to that last payment immediately, exit the proposal, work together to pay off the loan, and we report monthly payments to the credit bureau. We help our customers build their creditworthiness and credit health as quickly as possible. We also share financial tips and advice to improve their financial literacy and ensure that they stay on track.
On average, how long does it take for a consumer to pay off a Marble loan?
Marble customers pay off their FastTrack loan—and get back to financial health—within three years. Some of our customers have paid off their loans in two years or less and we give 4% back to our customers retroactively for that.
How long before a consumer sees a positive effect on their credit score?
They will see an immediate boost of 30 to 70 points as soon as we pay off their consumer proposal. Monthly loan payments made will increase their credit score incrementally as well. The sooner they pay off their FastTrack loan, the faster they could go from bad to good credit as it shows other potential lenders that they are building creditworthiness. Their R7 consumer proposal rating could be lifted from their report within three years.
What else does Marble offer? Are there any other advantages in applying for a loan with Marble?
Besides our FastTrack loans, we have a ScoreUp software product that anyone, regardless of their credit health, can benefit from. This application takes a soft draw of one’s credit report (so it does not affect their rating) and makes suggestions on which steps to take to make the biggest and fastest positive impact on their credit score.
It works by allowing ScoreUp customers to set a target credit score and input their financial information, such as bills, loans, and credit. Our software then analyzes and creates simulated scenarios and a step-by-step plan to build credit. For example, it may suggest focusing on paying off one credit card or loan payment, such as a car or student loan, before another based on its credit weight. It also helps catch potentially damaging credit bureau errors, which happen more often than you might think.
