Since March, banks and lenders have received an unprecedented volume of requests for deferrals on mortgages, car loans and credit cards.
If approved, the lender agrees that they will not report payments as missed or late to the credit bureaus; this has caused concern for consumers worried that incorrectly reported programs could hurt their credit, as late payments typically account for 35% of credit scoring models.
Borrowell has launched a new feature that shows whether payment deferrals are properly recorded on their Equifax credit report. Aimed at providing greater visibility and added peace of mind, Borrowell is the first to launch this service in Canada.
Leveraging information from Equifax, the new feature incorporates deferrals and repayment plans reported by lenders and displays them on the Borrowell payment calendar.
Through the company’s web and the mobile app, consumers can now quickly check whether their payment deferrals were effectively logged, without having to contact their loan provider.
“Canadians need reassurance that the temporary measures they’ve taken won’t have long term consequences on their credit health,” said Andrew Graham, Borrowell’s co-founder and CEO.
“As a company dedicated to making financial stability possible for everyone, we believe, now more than ever, in driving innovation and providing solutions that help people manage their finances.”