Andrew Graham is co-founder and CEO of Borrowell, an innovative financial technology (Fin-tech) company that offers personal loans online to consumers with good credit.  Previously, Andrew led PC Insurance, a fast-growing consumer finance unit within Loblaw Companies Limited.  Earlier in his career, he has held senior roles in corporate strategy and mergers and acquisitions, and was a political staffer in Ottawa. He holds an MBA from Harvard Business School and an MA in Economics from the University of Edinburgh.  As Borrowell makes it to the front page, we catch up with Andrew to find out about a newsworthy, pioneering effort from his company—something that was financially important to all of us but was inaccessible, well nearly, up until now.

Borrowell has made it to the headlines and it is a first for your organization. Care to share this great piece of news?

We made a big announcement a few weeks ago: we’re the first and only company in Canada to give you your credit score for free without applying for credit. This is a really a huge deal. Your credit score is a snapshot of your history as a borrower. It’s a three digit score, from 300 to 900, which banks and other lenders look at when they’re deciding whether to give you a loan, a mortgage or a new credit card.  It is a determining factor for an instantaneous “Yes!” or “No!” from financial institutions, and it was hard to get: you had to pay for it.  Now, through our partnership with the credit bureau Equifax, we’re able to give anyone who looks up the Borrowell site your credit score at no cost to you.

 

That’s truly exceptional, all borrowers, which is pretty much all of us in North America have access to our credit scores. But what’s in it for Borrowell?

As a fairly new company, we want to raise our profile, and providing a useful service like this is a great way to do so.

 

What else is happening at Borrowell?

Well, we continue to offer low-cost loans to Canadians with good credit. Before reputable online lenders like Borrowell came along, there were few options for people looking to pay down high-cost debt, like credit card debt, or get low-cost loans for instance. You could go through the cumbersome process of applying with a bank. Or you could carry debt on credit card, but that can escalate into a very expensive affair. The typical credit card in Canada charges 20% interest or higher! Rates on loans with Borrowell start at 5.6%, and on average are about 11%. That can mean absolutely fantastic savings versus a credit card!

 

Besides, there’s no cost to check your rate with us, it won’t affect your credit and it can be done from anywhere. It’s easy, via our website. The convenience of our application process has been the single-biggest driver in our growth to date.
So has Borrowell expanded Canada-wide?

We offer free credit scores across Canada other than Quebec, and loans in all provinces other than Quebec and Saskatchewan.

 

Could you give us a heads-up about the kind of customers you get at Borrowell?

We get a wide variety of customers. Some people assume that we’re focused on millennials, that is, younger people who are savvy with technology. In fact, we’ve had people of all ages get their credit score or a loan from us. The oldest person to get their credit score with us is 101 years old! People who take loans with us are diverse as well, though they do have some things in common. They have good credit histories, stable jobs and options for where they bank. They have choices, and choose us because we’re fast, trustworthy and friendly.

 

How difficult is it for debt repayment?  Does your organization enlist the support of a collections agency?  If not, do you foresee that happening?

The vast majority of our customers have no problem repaying a loan with us. When you check your rate, we show you what your monthly repayment amount will be, and this doesn’t change during the life of the loan. That makes it very easy to plan for the future. In the rare event that someone does not repay, we first try to reach out to them and arrange for a different payment date. If we’re not successful, then we’ll take further steps to ensure repayment, including using a collection agency, just like many banks do.
Let’s backtrack a little bit and refresh on your new free credit score offer–isn’t that what TransUnion also offers?  How different is yours?

We’ve actually partnered with Equifax to provide the credit score. Equifax is the same credit bureau that many banks use, so the score you’re getting from us is widely used by actual lenders.

 

Some of the advantages of getting your score though us:

-It doesn’t cost anything–it’ll always be free.

-No credit card required!

-It won’t affect your credit score.

-You’re not applying for credit.

-We’ll update it regularly, so you can monitor how your credit score changes over time. (This is also offered for free)

 

We’re also planning to share special deals and offers to Canadians, customized to them individually based on their credit score. We want to reward people who’ve worked hard to get a great credit score and let them know how that credit score can save them money.
Why are credit scores so important in our society? Do lending/financial institutions always look at this score and predetermine what they can lend you as a customer? And what does the score exactly signify?

Your credit score is important as it is like your financial reputation. Credit scores are widely used on loan applications, but can also be used by landlords, potential employers, and beyond. Your score is a measure of how responsible you’ve been with your finances, and a prospective landlord or employer may want to know how reliable you’ve been.  Lenders will almost always look at your credit score. But they look at other things as well, such as your income, the amount of debt you’re currently carrying and whether you’ve paid your bills on time.

 

It is very important that you are aware of what your credit score is to track your financial well-being, and also to avoid any fraudulent activity. Most organizations recommend that you review your credit report once each year. Checking your score regularly is important too. If your score goes down suddenly, at least you’re aware and can take steps to fix it.

 

Having a good credit score can help you to attain financial goals that you have set, such as buying a home, buying a new vehicle, or starting a business. A good score will widen the number of options you have available to you – whether it comes to an apartment, mortgage, or other financial services product. And a good credit score will save you money – it’ll mean you’re getting the best interest rates and the best deals because financial institutions want to do business with you.

 

Sounds great, so let our readers know how to go about the process

The process is super-easy! Literally a 4 step process!

1. Visit borrowell.com and click on “Credit scores for free”
2. Fill out the short application form.
3. After you verify your email address, we’ll ask a few questions to verify your identity.
4. That’s it! Your credit score will be displayed on your screen, instantly.

What else is new at Borrowell?

We’re working hard to make the experience of getting a loan or a credit score with us as simple and friendly as possible. We’re also constantly looking at how we approve and price our loans, to make sure we’re offering Canadians the best deal. Lastly, like I mentioned earlier we’re tracking down some really great offers to match Canadians with products and services that match their credit score.

 

Jude Paul Fernandes / jude@thesouthasiannews.com