If you’re using Borrowell to track your credit score, then you most certainly wonder, “Is Borrowell credit score accurate?” Most Canadians rely on Borrowell for monitoring their financial health, but it is important to understand the degree of accuracy the Borrowell score has compared to what lenders see. In this matter, we will dissect the workings of Borrowell, how much it is really accurate, and what you should know before putting your complete trust in it.
What Is Borrowell?
Borrowell is a Canadian fintech company that provides customers with free access to credit scores and credit reports. Borrowell works with Equifax, one of Canada’s major credit bureaus, to let you see your credit score, credit history, and even recommend financial products that would suit you.
Unlike with all those pay-per-check services, Borrowell lets you monitor your scores free of charge. They do a soft inquiry, unlike a hard pull, that does not damage your credit score. Now, that put aside, the real question remains: How accurate is the Borrowell credit score?
Is Borrowell Credit Score Accurate Compared to Lender Scores?
Now to the heart of the matter — is Borrowell credit score accurate compared to what banks and lenders see? The answer is both yes and no.
Borrowell uses the Equifax Risk Score 2.0 to ascertain the credit standing of the individual consumer so as to give that person some glimpse of their credit health. But some might share a different measurement tool, whether in terms of credit scores or other customized scoring models provided through Equifax or TransUnion.
How Borrowell Score May Differ from Lender Scores
- Score Range: Borrowell issues scores within the range of 300 to 900, the most common of all credit scores.
- The Model: A lender using credit scoring may use more sophisticated or customized credit scoring models that may treat factors very differently.
- Timing: Borrowell credits update scores every week, but it is possible that the lender may pull the scores on a different date, leading to a discrepancy between the two numbers.
Hence, a Borrowell credit score, while effectively reflective of the Equifax Risk Score 2.0, may not be aligned identically with the logic used by banks while reviewing your loan application.
What Factors Does Borrowell Use to Calculate Your Score?
To understand why Borrowell scores might differ, consider these factors for credit score calculation:
Payment History (35%)
On-time payments heavily influence your credit score. Payment, if late or missed, is an easy way to pull it down really fast.
Credit Utilization (30%)
Credit usage matters. The lower your utilization, generally, the higher your score will be.
Credit History Length (15%)
Older credit accounts forge a higher score, implying long-term financial responsibility.
Credit Mix (10%)
Having different kinds of credit works well for your score.
New Credit Inquiries (10%)
While it is small, making multiple new credit applications within a short period will diminish your score.
These are the quintessential Equifax score factors, and second to it, Borrowells pays much heed. Hence, Borowell does seem to be accurate based on its parameters – different methods just give different weight to these factors.
Tips for Using Borrowell Effectively
Though Borrowell might not present the exact score a lender would see, it does make a great financial tool. Here’s how to use it wisely:
1. Look at the Trends, Not Just the Numbers
Borrowell credit score reveals whether your credit health is improving or worsening. Look for trends rather than stressing about tiny fluctuations.
2. Check Updates Every Seven Days
Borrowell updates scores every 7 days. And checking regularly means staying ahead of the curve for any problems.
3. Look Over Your Credit Report
Borrowell also grants you one free Equifax credit report. Check for errors, identity theft, or suspicious account activity.
4. Take Product Recommendations With a Grain of Salt
Borrowell recommends loans and credit cards based on your profile. Still, it is always better to do your research before proceeding.
Conclusion
So, is Borrowell credit score accurate? Yes-too-sure!-but only within its framework. It’s based on Equifax’s Risk Score 2.0, so helpful for personal tracking and financial planning. It may, however, not be the exact score that the lender uses since they tend to use custom versions or FICO-based models.
In any case, using Borrowell is a smart and safe way of keeping up with your credit score-just remember to think of the score as an estimate rather than assurance for approval.
Frequently Asked Questions (FAQ’s)
1. Is Borrowell credit score accurate compared to TransUnion’s?
No, and the reason is that Borrowell generates a report for clients using data from Equifax. TransUnion uses a different credit file and scoring model.
2. Why am I getting a different Borrowell score from my bank?
Most banks use proprietary credit scoring models or FICO scores, whereas Borrowell uses Equifax’s Risk Score 2.0, and so differences exist.
3. How often does my score get updated at Borrowell?
Borrowell updates your credit score weekly from the latest Equifax data.
4. Can using Borrowell decrease my score?
No. Viewing your score on Borrowell results in a soft inquiry, hence no effect on your credit.
5. Is Borrowell accurate enough to apply for loans or credit cards?
Borrowell gives you a rough indication of where you stand, but it’s always better to double-check with a lender because they may use a different system.
Still Wondering If Borrowell’s Credit Score Is Accurate? Get the facts, compare with other credit tools, and make smarter financial decisions today. For any query, connect with NewsMagToday.
