Build your credit
Build the payment history and credit mix of your credit report¹ with Borrowell Credit Builder.
How Much Could Credit Builder Improve My Credit?
Credit Builder members who make on-time payments and saw a credit score increase had an average credit score increase of 41 points within 5 months.²
A New Way to Build Credit
You can build consistent payment behaviour to increase your credit!
- Achieve your financial goals
- No hard credit check when you apply
- You can cancel anytime without financial penalty
Who Benefits from Credit Builder?
- Canadians who are aiming to build their credit history and diversify their credit mix
- Those who want to build their credit to access more credit products like loans, credit cards and mortgages, and at lower interest rates
Credit Builder FAQs
Credit Builder is a credit building product designed with affordability in mind. Make payments for 36 months, then get savings back. All payments (including missed payments) are reported to Equifax Canada.
Positive payments reported to Equifax Canada help you build credit, which is an important factor in qualifying for lower interest rates and better offers on credit cards, mortgages, loans and more. Your payments are made automatically through a pre-authorized debit agreement, so you never have to worry about missing a payment. Borrowell does not guarantee credit score improvement, which is dependent on a number of factors such as payment history.
Credit Builder is a secured installment loan. Unlike a traditional cash loan, you don’t receive any money upon approval. As you make payments, they are reported to Equifax Canada. At the end of 36 months, your total savings will be directly deposited into your bank account. There is no hard credit check to apply.
It may not seem like your credit score impacts your daily life, but your credit score influences almost every financial move you make. A good credit score helps you access four major things:
Lower interest rates: Lower mortgage rates, car loans, and personal loan interest rates make your monthly payments lower, freeing more space in your budget for saving and spending.
Better credit terms: Higher approval chances for credit means you can make financial decisions about your future with confidence, whether you need additional funds for school, home renovations, or a new car.
Higher credit limits: You'll automatically qualify for higher credit limits, which gives you more financial flexibility in an emergency and makes it easier to maintain a reasonable credit utilization rate.
Top-tier financial products: You’ll have much higher chances to qualify for premium credit cards, such as rewards cards and cashback cards, along with other top-tier financial products.
Your Credit Builder payments are reported to Equifax Canada and will appear on your credit report as an instalment tradeline under Borrowell.
Credit Builder is available to all Borrowell members who:
are a Canadian citizen or permanent resident
are the age of majority in their province
have at least six months of credit history
have at least two tradelines (loan, line of credit, credit card, etc.) on their credit file with Equifax
live in Canada, excluding Quebec, Saskatchewan, New Brunswick
Starting to build your credit score from scratch might feel daunting, but with some effort and careful money management, you will be well on your way to establishing your credit.
Credit Builder is a great way to get going as it’s made for those who are starting out with credit. With every on-time payment that gets reported to Equifax, you’re building your credit history and a track record of managing credit responsibly, which will help to boost your score.
Other ways to build your credit from scratch include:
Reporting your rent payments with Rent Advantage™
Getting a secured credit card
Taking out credit with a co-signer
While it can take a number of years to build a high credit score from scratch, you can start building credit history and establishing a foundation for a good score with consistent on-time payments of your bills, such as your credit card, phone bills, and loans.
By establishing a tradeline like Credit Builder and making all of your payments on time, you will signal to potential lenders that you can be trusted with credit, and this will help build the foundations for a solid credit score.
¹ To qualify for Credit Builder you must be a Canadian Citizen or a permanent resident and you must be the age of majority in your province or territory of residence. Credit Builder is not available in Saskatchewan, New Brunswick and Québec.
² Based on a study of Borrowell members with an Equifax Canada credit score (ERS 2.0) under 600 when they signed up for Credit Builder after May 2022, made on-time payments on their Credit Builder and had a credit score increase. Individual results may vary. Other credit score factors, including late payments, activity with your other tradelines and credit utilization may impact results.
³ Credit Builder is not a traditional loan where you get cash upfront. During the first 24 months, the payment consists of a program fee and savings that you'll get back. During months 25 to 36, you’ll pay $0 in fees and you'll get back the entire payment as savings. We take a fee for reporting your payment to Equifax Canada. You can cancel at any time without a cancellation fee or financial penalty.
⁴ We report all your biweekly payments to Equifax Canada. On-time payments can help build credit history and improve your credit score, while missed payments can negatively impact your score.
The Credit Builder program reports to Equifax Canada and provides installment loans up to $2,990 with annual percentage rates (APRs) ranging from 18.64% to 26.46%, with a 36 month term at a 0% interest rate.
For example, on a $1,430 loan with a 36 month term at 21.65% APR and a bi-weekly payment of $25, the total repayment amount of principal and fees is $1,950 and the total cost of borrowing is $520.