Borrowell Reviews, Ratings And Fees 2020

Borrowell


Since 2014, Borrowell has been helping Canadians gain access to fair and affordable loans all while helping them monitor and even improve their credit health. Borrowell’s easy to navigate online application provides Canadian consumers with free personalized loan quotes. Borrowell offers secured and fast personal loans up to $35,000. Thousands of Canadians, just like you, have trusted Borrowell when they needed them the most.

Interested in Qualifying with Borrowell?

As with any Canadian lender, Borrowell will need to know more about your finances before they can approve you for one of their products or services, any of which you can access through their online portal. 

For instance, with a large personal loan, they will inspect certain financial elements when you apply, such as your:

  • Employment history
  • Credit report and credit score
  • Bank account transactions
  • Current and recent debts
  • Residency details (loan conditions may vary based on your province/territory)
  • Most recent Notices of Assessment, if you are:
      • Living on disability
      • On maternity leave
      • Self-employed
      • Retired
      • Working more than one job  

How to Make Yourself Eligible 

Borrowell’s head office is located in Toronto but the majority of their business is done online. Although you may need to present different personal and financial documents when you apply for a specific product or service, let’s again use personal loans as an example of how to prepare for the process. 

Despite Borrowell accepting a wide variety of consumers, it will be easier to get approved for a larger loan with a low-interest rate if you:

  • Consolidate your unpaid, highest-interest debts
  • Find a solid source of employment (earn at least $20,000 yearly)
  • Organize proof of your income and residency (bank statements, paychecks, etc.) 
  • Check your credit report for errors and signs of identity fraud
  • Have at credit history that’s at least 12 months long
  • Elevate your credit score to the 660-900 range through responsible payments. 
  • Make sure you’re fully discharged from any consumer proposals, bankruptcies, or other debt management procedures

What Products and Services Does Borrowell Offer?

When you’re thinking of applying for any type of credit product or related service, it’s important to do some prior research to confirm that your chosen lender is a legitimate business and provides the solutions that best suit your finances.

Luckily, Borrowell is a multi-purpose lending institution, so they offer a broad range of financial products and services, such as:

  • Credit Monitoring
  • Credit Cards
  • Mortgages
  • Banking & Investing
  • Insurance Programs
  • Loans ($1,000 – $35,000)
    • Personal
    • Small business
    • Debt consolidation
    • Home improvement
    • Vehicle purchase

Borrowell also stands out among other lending institutions because they:

  • Have a detailed blog
  • Offer flexible interest rates and repayment plans
  • Report to Equifax, so complete payments will improve your credit 
  • Provide many free services with their membership
  • Will not charge you any prepayment penalties for early installments
  • Are partnered with several major financial institutions (Scotiabank, BMO, etc.)

What Does the Average Borrowell Personal Loan Cost?

Another positive aspect of the Borrowell webpage is that it provides information about their loan costs. Like most lenders, they can help you calculate how much interest you would theoretically pay over the life of your loan. Unlike many lending websites, however, Borrowell also details their loan origination fees within their FAQ section.

According to their webpage, Borrowell charges:

  • A one-time origination fee of 1% – 5% (of the final loan balance)
  • Interest rates of 5.6% – 29.19% APR (the average is 11%-12%)

Think About the Cost of Your Loan Payments

In the end, the overall cost of your loan will mainly depend on the conditions of your repayment plan and the interest rate you qualify for. Keep in mind that your loan payments can have a heavy impact on your monthly budget, especially if you have other active high-interest products on your credit report.

At the moment, Borrowel only offers monthly repayment plans. Before applying, make sure to get an estimate and factor all costs into your budget to see if you can afford them, as well as your other expenses. If you cannot handle your payments once they’ve started, contact Borrowell immediately to avoid any major debt problems.  

What Questions Should I Ask Borrowell?

The good news is that Borrowell has a good reputation on social media and among its customers. That said, it’s always essential to check your lender’s background and ask a sales representative questions like:

What Clients Does Borrowell Accept?

Although becoming a Borrowell member isn’t too difficult, it might be harder to get approved for the most cost-effective loans when you have less-than-perfect finances. 

As mentioned, being an experienced borrower with a clean credit history, a low amount of outstanding debt, a good credit score, and a minimum yearly income of $20,000 is the best way to encounter favorable results when you apply.

How Will My Credit Be Affected?

When applying for any credit product, loans included, it’s carefully consider how your credit report and credit score will be impacted when you apply, as well as when you make or miss payments after approval. 

Since Borrowell is partnered with Equifax, one of Canada’s leading credit bureaus, here’s what would happen when you apply for a loan

  • First, they will check your credit report to see how you’ve handled your previous credit products. This is known as a hard inquiry and will decrease your credit score by a few points. 
  • If your credit history is positive and your finances are strong, you will receive the loan by direct deposit a few business days later. 
  • From then on, Borrowell will report your payment activity to Equifax. If you pay your installments as agreed, your credit score will increase. If you default (late, short, missed payments), it goes down. 
  • If you complete your repayment plan responsibly, your credit score will ideally be within the good range (660-900), which will earn you better approval odds, more credit, and lower interest rates in the future (and vice versa). 

What Are the Pros and Cons of Applying with Borrowell?

Remember, if you’re looking to apply for a personal loan or any other credit product, it’s important to confirm that their services are right for your particular financial situation. Take a look at some of the benefits and drawbacks of what Borrowell has to offer:  

Pros

  • Loan origination fees are represented clearly on their webpage
  • No penalty charges for lump-sum payments or prepayments 
  • Checking your potential interest rate will not affect your credit
  • Full and on-time payments will elevate your score
  • Many different products and services are available

Cons

  • A $25 – $54 penalty will apply for NSF (non-sufficient funds)
  • Payments can only be made monthly
  • Hard inquiries and defaulted payments will decrease your credit score
  • It’s harder to be approved if you have a bad credit score (300-600), a low income, or debt-related issues

Borrowell Services


Borrowell Reviews & Ratings

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FAQs

What is the maximum APR allowed in Canada?

  • The Criminal Code of Canada states that the maximum APR that can be charged for a loan in Canada is 60%. Interest rates above 60% are illegal. It’s important to note that payday loans are exempt from this law. Payday loans are regulated on a provincial level which means the maximum interest rate that can be charged for a payday loan varies from province to province. In Quebec, the maximum AIR on payday loans in 35%, this rule has effectively shut down the payday loan industry in the province.

How much does it cost to take out a personal loan?

  • While this depends on a variety of factors, including your lender, there are several main factors that affect the cost of a personal loan.
    • Principal amount
    • Interest rate
    • Payment frequency
    • Repayment period

What happens if I stop paying my loan?

  • When you stop making payments on a loan you will go into default, your lender will likely try to make several attempts at collecting the money you owe, and if these attempts fail they may then send your account to a collections agency. Your credit score may also be negatively affected which will make it difficult to borrow in the future. When applying for a loan, it is important to not overextend yourself financially and limit the total amount borrowed, especially if the cost of borrowing is high.

What documents are required to apply for a loan?

  • While this will vary from lender to lender, here are the most common documents required to apply for a loan in Canada.
    • Government-issued I.D.
    • Proof of address
    • Proof of income or employment
    • Bank statements
    • Tax returns (for those who are self-employed)

What is the difference between a payday loan and a personal loan?

  • A payday loan is a short-term loan product, usually for no more than $1,500, that is paid back in full within two weeks or on the borrowers next payday. Payday loans have high-interest rates that often equate to an APR of over 400%.
    A personal loan, on the other hand, is a short to medium-term loan product that is paid off in installments over a fixed period of time, typically 3 months to 5 years. Personal loans are available for a variety of amounts, anywhere from $500 to $35,000. Interest rates vary from lender to lender but are nowhere near as high as payday loans.
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