New Tool to Help Canadians Improve Credit Scores
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 its free bill tracking solution to help users predict upcoming bills and manage their cash flow.
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 a free bill tracking tool exclusive to the Borrowell app that’s designed to help Canadians get ahead of their bills and keep their credit score healthy.
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, Borrowell's free bill tracking helps Canadians stay on top of their finances.
“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 we want to give our users all the tools they need to stay on top of their finances in this uncertain time.”
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.
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.
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.
Borrowell is dedicated to making financial stability possible for everyone. Borrowell 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 bill tracking feature predicts bills and balances to help users avoid missed payments.
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.
Borrowell is dedicated to making financial stability possible for everyone. With over 1.5 million members, the company offers free credit scores in Canada, education, weekly credit monitoring, credit building solutions, as well as digital tools like AI-powered credit coaching and personalized financial product recommendations. For more information, visit borrowell.com or download the mobile app for Android or iOS.