Equifax Canada, one of Canada’s major credit reporting agencies, has recently announced that it intends to partner with Toronto company Borrowell Inc. Borrowell Inc. is a financial technology company that hopes to provide Canadians with quick and easy access to their credit scores, all for free.
Many Canadians might have a sense of their credit score, whether its ‘okay’, ‘good’ or ‘great’, but may not know their exact score. In today’s world, your credit score is increasingly relied upon as an indicator of your financial well-being and provides lenders with an overview of your worthiness as a borrower. While each lender may interpret credit scores differently, Canadians’ credit scores serve as a barometer for how risky, or not, a borrower might be – often times influencing not only whether or not you’ll be approved for that loan, but what the terms and conditions might be.
According to a Bank of Montreal survey dating back to 2015, only 56 per cent of Canadians were aware of their credit scores, while 14 per cent of Canadians were checking their credit scores at least once a year.
While you might ask, “Why check my credit score so often if I’m not looking for a loan?”
Equifax Canada would argue that it is important to check your credit periodically in order to protect against identity theft, and the company does provide paid products to consumers to periodically check credit scores in order to protect against identity theft, you can also request a free credit report through the mail as well.
Quick online credit checks do exist today, but are paid products, likely the reason why many Canadians may not be aware of how they score. Education, that is, not being aware of what factors impact their credit scores and the importance of a credit score in determining one’s perceived credit-worthiness, may be the other reason why 44 per cent of Canadians are unaware of how they score.
Terms of the agreement were not disclosed as of this time. Borrowell has indicated intentions to use the free service as a platform to nurture relationships with consumers, potentially leading to offers for loans down the road.
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