According to TransUnion, one of Canada’s major credit bureaus, there are roughly 2.64 million Canadians considered “subprime” borrowers, as of the first quarter of 2023. These are borrowers with credit scores under 640 who have trouble accessing credit products from traditional lenders. As such, they’re typically limited to subprime lenders that charge much higher interest, making it more expensive to borrow money.
That’s where a service like Woveo comes into the picture. Under-banked Canadians who would otherwise have to resort to high-interest credit products can access quick, short-term credit lines from Woveo, interest-free. Plus, Woveo’s credit line can be used to build good credit with timely payments, helping consumers eventually access opportunities for more credit products at lower rates in the future.
Who Is Woveo?
Woveo is a fintech company offering a community finance wallet to help low to moderate-income consumers access credit solutions and achieve financial security through low-cost credit. Woveo’s community wallet promotes community-based accountability so consumers can improve their financial habits and boost their creditworthiness.
How Does Woveo Work?
Woveo’s community finance wallet allows communities to pool money into a shared group savings plan to help consumers achieve their savings goals. By participating in a group savings plan, you can access pooled funds via an interest-free line of credit. Every timely payment made towards repaying borrowed funds can help build good credit.
Using Woveo is simple and works as follows:
Step 1. Join A Community
Join a community with other Woveo participants who are working towards reaching financial security.
Step 2. Participate In Group Savings
Create a group savings plan according to your needs and goals, or join one already up and running.
Step 3. Build Credit
Once your plan is all set up, you can start accessing credit with no interest and start building a positive credit profile.
What Does Woveo Offer?
Woveo offers four unique financing products to help you strengthen your creditworthiness, develop sound financial habits, and access quick funds:
Rotating Savings
Woveo’s rotating group savings plan encourages you and your community to build your savings together and create a pool of funds from which you can borrow, interest-free. Not only are you creating a savings account together, but also a financial support system for all group plan members to fall back on and encourage.
Credit Building
Build good credit by participating in a group saving plan, access a line of credit based on your anticipated group payout, and make on-time payments to repay what you borrow. Woveo will report your payments to the credit bureaus, which can help improve your credit scores.
Credit Score Monitoring
With Woveo’s credit score tool, you can keep tabs on your credit report. You can use the tool to check your credit score for free and get guidance on improving your credit health.
Cash Advance
Woveo’s cash advance provides short-term access to funds when the need for extra money arises. You can get the funds quickly without paying sky-high interest.
How Much Does Woveo Cost?
Woveo is free to use with the “Freemium Plan”, though you can upgrade to the paid plan to access additional features:
| Freemium Plan | Premium Plan | |
| Cost | $0/month | $10/month |
| Features | – One group saving plan – Credit score monitoring – Virtual pockets – $2 instant transfers | – Unlimited group saving plans – Credit score monitoring – Virtual pockets – Free instant transfers – Credit building – Cash advance – Default protection |
How Do You Get Woveo?
You can use Woveo by downloading the app. There are a couple of ways to access the Woveo app:
- Have the app texted to you. Just add your mobile phone number and Woveo will text the app directly to you for download.
- Find the app for iOS or Android. Alternatively, you can visit the App Store or Google Play to find the Woveo app for download.
Once you’ve downloaded the app, you can either create an account as a new user or log in to an existing account.
- If you want to join, simply input your name, email address, and password to create an account and get started.
- If you’re already part of a group plan, simply log in using your email address and password.
How Do I Link My Bank Account To Woveo?
To link your bank account, follow these steps:
- Log in to your Woveo account
- Go to settings
- Click “Add Account” in Banking information
- Choose the bank you want to connect to
- Accept the pre-authorized debit agreement
- Select your account to link
If you’re connecting via online banking, input your online banking credentials. If you’re connecting via bank details, enter your bank account number, branch number, and institution number.
How Does Woveo Compare To Nyble Credit Building Options?
Nyble is another Canadian personal finance platform that offers consumers an interest-free line of credit to help build a healthy credit profile. So, how does Woveo compare to Nyble’s credit building product?
| Woveo | Nyble | |
| What Is It | Line of credit | Line of credit |
| How It Works | – Join a community with others – Participate in pooling funds in the plan – Access a credit line – Make repayments & build credit with reported payments to the credit bureaus | – Link your bank account with Nyble – Access a credit line up to $150 – Choose a repayment date – Repayments are automatically debited from your account & reported to the credit bureau |
| Pricing | – Freemium Plan: Free – Premium Plan: $10/month | – First 30 days: Free – After 30-day trial: $11.99/month |
| Unique Features | – Rotating savings – Cash advance – Credit building – Credit monitoring – No interest – Virtual pockets – Instant transfers | – No interest – No credit profile required – Earn rewards points – Track your credit building progress |
Final Thoughts
If you’re looking for a unique way to access quick funds, save, and build good credit, Woveo may have something to offer you. You can try it for free to see if it suits your financial goals, or subscribe to a paid plan to take advantage of even more perks.
