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New Tool to Help Canadians Improve Credit Scores

The Borrowell Team

Jun 24, 2020 4 min read

63% of Canadians Feel Stressed About Paying Bills This Summer

In response to financial stress felt by Canadians, Borrowell launches Boost, a tool to predict upcoming bills, manage cash flow, and offer a $75 interest-free cash advance

TORONTO, June 24, 2020 — According to a study released by Borrowell, 63 per cent of Canadians are feeling stressed about paying their bills this summer. In the midst of these challenging financial times, Borrowell — one of Canada’s largest financial technology companies — has launched Boost, a tool exclusive to the Borrowell app that’s designed to help Canadians get ahead of their bills and keep their credit score healthy. 

Credit score dial with copy of 63% of Canadians Feel Stressed About Paying Bills This Summer

Making bill payments on time remains important, despite these financially difficult times, and is clearly shown when looking at new data from more than one million Borrowell members. On average, Borrowell members with even a single missed bill payment have credit scores 150 points lower than those who make their payments on time. As the first tool of its kind in Canada to predict upcoming bills and send low balance alerts — as well as to provide an interest-free $75 cash advance to avoid missed payments and costly overdraft fees — Boost gives Canadians the ‘boost’ they need to stay on top of their finances. 

Credit Score Dial with copy of -150 points Canadians with 1 Missed Bill Payment Have Credit Scores 150 Points Lower Than Those Who Make Their Payments On Time

“We can’t emphasize enough the importance of paying bills on time,” explains Andrew Graham, Co-founder and CEO of Borrowell. “It’s a key ingredient in building good credit and having strong overall financial health. We know Canadians are stressed right now about making their payments, and Boost gives them all the tools they need to stay on top of their finances in this uncertain time.”

Download the Borrowell mobile app on Android and iOS today.

Concerning payment behaviour — but improved financial outlook

Since COVID-19, 35 per cent of respondents admitted to having missed at least one bill payment, and 69 per cent of those missed payments were due to being short on cash. Even when making payments, Borrowell found that Canadians are too often resorting to potentially dangerous measures:

  • 40 per cent have started paying their bills with credit cards — which can result in high interest charges 
  • Others report relying on dipping into savings (27%), borrowing from friends or family (11%), using costly overdraft (11%), or relying on interest-accruing lines of credit (9%)

The study released by Borrowell also found that the financial outlook of Canadians is showing a promising trend. Fewer respondents are reporting feeling anxious about their finances now (53%) than they were when COVID-19 first hit in March (74%). While the current percentage of Canadians anxious about their finances is still far too high, these numbers mark a significant improvement.

Highlights:

  • 63 per cent of Canadians are feeling stressed about paying their bills this summer; this number increases to 70 per cent among adults between the ages of 21 - 30
  • Borrowell members with even a single missed bill payment have credit scores 150 points lower than those who make their payments on time
  • Since COVID-19, 35 per cent of respondents missed at least one bill payment — and 69 per cent of those missed payments were due to being short on cash
  • Fewer respondents are reporting feeling anxious about their finances now (53%) than they were when COVID-19 first hit in March (74%)

Download the Borrowell app to access our free bill tracking service. If you need help covering your bills, sign up for our premium Borrowell Boost service to access $75 cash advances, on demand and interest-free. For premium access to cash advances, there is a monthly subscription of $4.99.

About the Survey

The findings are based on survey responses from 15,086 Borrowell members in June 2020. The credit report data was pulled from more than 1,000,000 Borrowell members.

About Borrowell

Borrowell is dedicated to making financial stability possible for everyone. The company offers free credit scores, education and weekly credit monitoring, as well as innovative digital tools like AI-powered credit coaching and personalized financial product recommendations. Borrowell’s latest product, Boost, is the first tool of its kind in Canada that predicts bills and balances and provides an interest-free advance to avoid missed payments and costly overdraft fees.

With over one million members, Borrowell is one of largest fintech companies in Canada. Borrowell has won numerous awards, including being named one of the top 100 fintech companies in the world by KPMG, ranking 4th on the Deloitte Technology Fast 50 list of fastest growing companies in Canada, and making App Annie's list of Breakout Finance Apps for 2019.

Media Contact:

Linda North

[email protected]

416-708-8012

Download Boost Today


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