Rachel Surman • Oct 23, 2019
The study found that our most engaged members increased their credit score by an average of 18 points over time! But it also found a positive relationship between checking your score and good credit behaviour in general. So, if you want to improve your credit score – you can start by checking it.
Borrowell members receive their free Equifax credit score and Equifax credit report from Borrowell each month. To measure member engagement, we looked at the difference between a member’s first score when they started using our free credit monitoring service and their most recent score. Engaged members improved their score by an average of 18 points.
When we restricted the sample of members to those who had credit scores below the median, we found the most engaged members increased their scores by 30 points.
But what’s even more exciting is we found members who check their credit score actually have fewer delinquencies, collections, and lower credit utilization ratios.
Payment history makes up 35% of your credit score. This is why making on-time payments is very important. In the study, we found that checking your credit score often was related to lower rates of delinquencies and late payments over time.
Credit utilization makes up 30% of your credit score. Your credit utilization ratio is the amount of credit you’ve used out of the total amount available to you.
You can calculate your own ratio by adding up all of the credit you’ve used and dividing it by your total credit limit. Banks and lenders like to see this utilization ratio below 30%. According to the study, members who improved their credit scores over time have learned to manage their credit utilization.
So if you’re ready to start improving your credit score, it’s time to start monitoring it! Checking your credit score is the first step to understanding your credit report and improving it.
Doing these 5 things can help you get an excellent credit score, according to a new Borrowell study.
Nov 01, 2019
Welcome to The Ultimate Guide To Personal Finance For College And University Students, by Borrowell! In this five-part guide, you’ll learn about important personal finance concepts that will prepare you for the next few years of school and beyond.
Aug 07, 2019
Today is an exciting day for all of us at Borrowell! We’re pleased to share that over a million people have signed up to Borrowell as members. This is an important milestone. It means that one in every 25 adult Canadians uses our free credit monitoring service! By that measure, this makes Borrowell Canada’s largest fintech company.
Apr 02, 2019
Borrowell® is a registered trademark of Borrowell Inc. All Rights Reserved. The Equifax credit score is based on Equifax’s proprietary model and may not be the same score used by third parties to determine your credit profile. The score provided to you for educational use is the Equifax Risk Score.
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