Credit Karma vs. Borrowell: What are the Key Differences and Similarities?
If you’ve been on the hunt for a free credit score, then you may have encountered Credit Karma and Borrowell.
Both of these companies provide free credit scores and reports, but there are key differences that you should be aware of before deciding which one is right for you.
1. Credit Karma vs Borrowell – Key Differences
Table of Contents
In this blog, I’ll walk you through the main differences between these two companies so that you can make a more informed choice.
Free Credit Score and Report
Credit Karma and Borrowell are very similar in this regard, so if getting your credit score for free was the main draw for you, then you may not be able to tell the difference.
These companies use Equifax and TransUnion credit scores and reports, which are two of the three major credit reporting agencies in Canada.
Updates on Credit Usage
There are some major differences between these two companies in terms of their information. TransUnion updates are generally available through your Credit Karma account every seven days. All you have to do is log in, and you’ll be able to get an eye on your credit score, any changes that were made, and what you can do to improve it.
Borrowell, on the other hand, also updates your credit score every week. However, you’ll be able to get updates on your credit usage, allowing you to see if there are any purchases or other changes made at the top of your Borrowell dashboard.
As part of their commitment to customer service, they also send you an email when your score has been updated so that you can monitor your development and remain aware of any sudden changes.
Borrowell: Auto, Business, and Personal Loans
Borrowell is one of the newest players in Canada’s fintech industry, but it has already made a name for itself. It offers personal loans, business loans, and auto loans. The best thing about Borrowell is that users don’t need to worry about credit scores or income levels to get approved.
However, this doesn’t mean there are no guidelines for lending criteria. All three types of loans require borrowers to be employed to qualify for financing.
Personal loan applicants must also have an active bank account with direct deposits to take out a loan through the company’s website. There’s also a minimum credit score requirement of 660, so those with lower scores may need to talk to a representative.
The main advantage of choosing Borrowell is that there are no hidden fees, and the company doesn’t require a minimum loan amount. This means borrowers can get an amount that they can afford.
The company also offers lower interest rates than Credit Karma(a major credit bureau), helping users save even more money.
Borrowell’s rates vary, depending on the loan amount and the applicant’s creditworthiness. For those with excellent credit scores of 680 or more, you can expect to pay around 12% interest, but those with lower credit scores may be subject to higher rates. The average Borrowell customer has an 809 FICO score.
Borrowell Credit Cards & Mortgage Comparison
Borrowell also provides credit cards with better rates than most major banks, so it’s worth checking out. Their mortgages are offered at competitive rates as well.
One of Borrowell’s main strengths is that it provides free FICO scores. Borrowell automatically updates its customers’ scores every week so that they can track their credit progress through the app or website.
The credit cards from Borrowell have perks for those with good and excellent credit scores. After signing up, customers receive a great initial bonus, which can be as high as $250.
In addition to the initial bonus, cardholders get cashback on every purchase they make with their card. For example, you can receive up to 1% cashback on all purchases and 5% on select travel-related purchases.
The mortgage rates offered by Borrowell are very competitive. First-time homebuyers benefit the most from this company since they receive lower rates than traditional banks.
Borrowell Helping You Track Your Bills
Since Borrowell is all about helping users get back on track with their finances, one of its features allows borrowers to monitor credit card payments and other bills.
When you log in to your account, you’ll be able to see a list of all the bills that are due for payment within the next few months. You can also add different bills in this section, so you’ll always know when your next bill is due and how much money you need to set aside.
The banking component of Borrowell is quite comprehensive. Borrowell offers checking and savings accounts. They use their knowledge and technological tools to provide you with the best account based on your financial situation.
The monthly interest rate for this account is 0.6%, and the company doesn’t charge any fees, making it a safe option for customers to store their money.
Borrowell’s mobile app is one of the best parts of this company. You can use it on Android or iOS, and the interface is very user-friendly. There are multiple categories to keep track of your money on the go. You can compare loans, monitor your credit scores, and even find coupons for discounts at major retailers.
The website is also very easy to use, so you don’t have to worry about getting lost when trying to log in. Borrowell updates its users’ credit scores every week on the website and their mobile app, so borrowers can keep track of how they’re doing.
Borrowell’s expertise in helping individuals get out of debt is apparent when looking at its loans and interest rates. The company offers the accurate tools and advice that borrowers need to track their finances.
One of the main reasons for this accuracy is that Borrowell keeps its customers up to date on their credit scores every week, so they can see how they’re improving.
Borrowell Pros and Cons
There are many benefits to using Borrowell’s services, but a few drawbacks are also.
- User-friendly website and mobile app
- Free credit scores are updated weekly
- No hidden fees or credit card spam
- Products and services that are perfect for you.
- A clear outline of the loan terms, as well as their approval chance
- You can only make payments once a month.
- Limited loan amounts
- There are several penalties for having insufficient funds in your account, ranging from $25 to $54.
2. Credit Karma vs Borrowell – Key Differences
Credit Karma is a company that helps people with their finances. The company was founded in 2007 and became a part of Intuit in 2020. Credit Karma offers free credit history, scores, reports, and credit monitoring. It also provides loans and other financial products.
Credit Karma’s website is dedicated to providing personal finance news and advice. It also provides credit card offers, savings account rates, and car insurance quotes.
Credit Karma Credit Score Monitoring
Credit Karma’s credit monitoring services are free to use. To access your credit score, you need to create an account with the company. Credit Karma provides you with your FICO score and updates it every week.
The credit karma website also has tips for maintaining a high score and how to work on improving certain areas.
Credit Karma offers loans as a service to its users. The company has partnered with several banks and other lenders to give customers the greatest loan options. If you have used Credit Karma for your credit score monitoring, you will be prioritized when applying for loans.
The interest rate on these loans is variable and is determined by the market. It’s a pay-as-you-go service so that you can make payments at any time on your loan.
Personal loans are used by millions of Americans every year to consolidate debt, cover unanticipated expenses, make house improvements, and pay for educational expenses.
Credit Karma vs Borrowell – Complimentary credit monitoring
The credit monitoring offered by Credit Karma comes free to all users, thanks to partnerships with companies such as
Transunion and Equifax.
To offer its services for free, Credit Karma must first gather and use your personal information to help other companies advertise their products. Some of these partners include Hulu, Uber, and Airbnb.
Your credit score is determined by Credit Karma’s information from you and your free credit report. This includes any loans that you have taken out and the credit cards in your wallet.
Credit Karma vs Borrowell – Identity Protection
It is also possible to sign up for free identity protection services through Credit Karma. This service will alert you of any suspicious activity that occurs on your credit report, so you can take action before it affects your credit score.
This service will also assist you in recovering any money that may be lost due to identity theft.
If you’re concerned about identity theft, a credit monitoring service may be able to help. Credit Karma offers free credit monitoring to all of its users, and the service includes alerts if any suspicious activity is detected on your credit report.
This can help you catch any potential identity theft before it causes too much damage.
Is Credit Karma Accurate?
Credit Karma is very honest about how it provides its credit score. The company has built a good reputation for providing an accurate score, but other factors such as payment history and credit utilization may also affect your score.
Your credit score is a multi-faceted metric, and it’s important to consider that the credit scores you see on Credit Karma come straight from TransUnion and Equifax. These are two of the three major credit bureaus, but there are others that you can contact directly to see your score.
A free credit score isn’t the only thing you can get on Credit Karma. Based on your credit score, you can also see various credit offers, including credit cards and personal loans.
Does Credit Karma Hurt Your Credit
No, Credit Karma does not hurt your credit. The company is partnered with TransUnion and Equifax, but it doesn’t directly provide your credit score. It simply shows you information that these bureaus have already put together, so there’s no chance of your credit score dropping by using this service.
Your Credit Karma score is not the same as your credit score, and it should not be treated as such. Although the company has built a reputation for giving a correct score, other factors can still affect your true credit score.
Credit Karma Credit Cards
Credit Karma also provides the option to apply for credit cards through their site. These cards are available in partnership with either Visa or Mastercard, and they are aimed at users with excellent credit.
If you have excellent credit, Credit Karma is a good place to start searching for the perfect card. You can apply directly through their website, and the application process is fast and easy.
The card that you’re approved for will depend on your credit score. You may qualify for the lowest interest rates and signup bonuses if your score is high. On the other hand, if your score isn’t as good, you may still be able to qualify for a card, but it will have fewer benefits.
One of the best things about using Credit Karma is that there are no hidden fees. The company discloses all of its terms upfront, so you can make a more informed decision about whether to apply for a card.
Credit Karma Pros and Cons
Credit Karma Pros:
- Free credit score and report
- Excellent user experience
- You Can monitor your credit for identity theft
- Provides various card offers
- You can get your TransUnion and Equifax credit score or report for free.
Credit Karma Cons:
- Recommendations for financial products may be distracting
- You receive targeted credit card offers based on your profile
- You can’t import transactions.
Credit Karma vs Borrowell – Credit counselling services
If you are having trouble managing your high-interest debt you can see a credit counsellor. Credit counselling services help people who are having trouble paying off their high-interest rate debt. We could all benefit from some advice every now and then, no matter what area of life we’re in. Credit counselling services help people who are having trouble paying their bills. A licensed credit counsellor gives advice on how to get rid of debt. Additionally, it helps you establish a healthy relationship between your finances and the advice offered is individually tailored.
Which to Choose Between Credit Karma vs Borrowell?
Credit Karma and Borrowell both provide different services, but they’re also similar in some ways. Both companies provide free credit scores and report monitoring with TransUnion, and they help their users apply for various financial products.
You should choose the service that best fits your needs, but you can also consider using both services to understand your credit score better. You should first look at which service is according to your specific requirements.
Borrowell is ideal if you need to take out a personal loan, but Credit Karma may be better if you want to monitor your credit or apply for a credit card.
There are several services available that claim to offer free credit reports and scores; however, we recommend both Borrowell and Credit Karma as the best choices.