I bet he ended up wishing he didn't. Looked like he was sweating in his pants trying to come up with legit reasons why his website's credit scores are absolutely useless and false.
Finally an insight of how credit scores work . I’ve been saying it all along , why 4 different credit companies always have different scores . Excellent programming ...keep up the good work !!
Well done CBC. This video clearly shows that a standardized formula should be enforced towards these "educational" organizations that are currently providing their own version of credit score. In fact, it should be made illegal to be called "credit score" since it's misleading and inaccurate for consumers. This secret Beacon score that they speak of should be made available to the public and not just businesses can see.
How that when you dont even know or understand your score. Borrowell is for people mainly bad credit, like yourself. Dont pay your bills on time, borrow too much, max out your credit card limits all affect your score. Not complicated, Read up on the 5 C's of credit. Before you make a dumb statement know what you are talking about
Credit bureaus such as Equifax and TransUnion in Canada should be subject to more coherent and exhaustive legislative and regulatory scrutiny. In my opinion.
@@yugiohpokemon5285 right. I'm 26. I have 11 credit cards with a total of 80k in credit limit. I make 30k a year and I'm debt free. I only charge what I normally would on a few credit cards and pay it back on full each month. I never paid intrest in my 8 years Uru credit cards. Now if I need to leverage my credit to start a business and make money in the best position.
No it's, you sound like you've been hurt by your scores and therefore couldn't get a rate on anything. These are useful in being able to determine if you're a liability or an asset to anyone lending or letting you use a service or product.
Nah it's a scam. People who know how to game the system can win. But if you want to live a life with zero credit, you're heavily penalized. You can pay off a credit card and your score goes down. It means very little.
@@akatobi2002 for most people, a single credit card that is always paid off in full gives them an average score. Which is fine because do they really need a perfect score? Not unless they are getting loans. A zero credit score puts a lot of people on edge as you seem risky. If I were a landlord I would be too. Who knows what type of income they make or job history they have.
I think the only beneficial thing to pulling your own credit report on any of these consumer sites is making sure your credit information is accurate. In addition to the score, these reports will tell you how many open credit accounts you have, which is important to check from time to time to ensure no one has stolen your identity and opening credit in your name.
I stopped caring about my credit score after a 4 year period of my life ware my score fell 200 points all the while I payed off a mortgage, car, doubled my income, and never had a late payment for anything. Its just a scam.
Closing an account of an installment loan, especially early temporarily drops your credit score. It affects your # of open accounts, credit diversification and your credit utilization.
Just a made up number that controls your entire life 😂😂 okay financial ghandi, your wisdom is unmatched. I’ll stick to paying off my bills strategically so I can actually buy a house or get a business loan and you can just keep handing money away on your newest loan with a. 28% interest rate 😂
Exactly...pay your bills on time, pay your credit card balance in full every month, don't max out your cards, don't be asking for new credit every 5 minutes and you'll be fine. I love Credit Karma. I find their articles and the scores they show me very informative. But that's all those sites are...general information.
@JOHN Q PUBLIC Oh my god... I know what a freaking credit score is. Hence why I said pay your bills! You're score shouldn't be a concern if you are doing this regularly. I am saying there is a lot you don't know about your score. What you think is your score may not be. Hence, don't stress over it. Get it?
Long story short? I had 2 entires of default made on my credit file from companies that I had no dealings with. No worrying you say? I only found about it when I applied for a loan at my bank.
I thought Equifax was a free company as well as the other ones that you could just call up and find out your credit score. I didn't know you had to have a membership
@@yugiohpokemon5285 technically speaking yes the score you see is a number holding no value in the eyes of lenders... however, the credit report is what you pay for.
@@yugiohpokemon5285 Prime example......pay something off 100% like a car and watch your score dip...why? so the bankers can reap the benefits of higher interest for a new loan....total scam.
@@yugiohpokemon5285 I think I can help u understand. Try to pull your report from all credit companies. If ur information isnt correct in all three n again u r giving your own personal data to these companies to update it but why ?? If these companies are not in sync and dont share data then that means there are chances you might get accepted or reject for certain loan if bank pulls the credit report from a company which is showing a lower score which is unfair on you. This is all crap system.
He answered nothing. Just danced around the questions providing little to no transparency into what factors into your score. When asked about the 200 point discrepancy between his company and Beacon, he didn’t provide an answer there either. He was useless to listen to.
I don’t think that individual is gonna qualify for that “high-end” vehicle with “low-end” job. Make no mistake....lenders look at the complete picture....not just the credit score factor (however, it does play a major role) during decision making process from the lenders.
Never had a credit score until I went to buy my home, even though I had cash and a good job no debt was told I needed to get more credit aka debt. Went out and 1 credit card and a personal loan. Then I qualified for a mortgage. After that I paid everything off except the mortgage, and haven't worried about my credit score since. Life's great being debt free and just a mortgage. I highly recommend it for normal people who just want to own a home and pay cash for everything else 😁. Credit score is just a way of judging people of who is good at being in debt and KEEPING THEM IN DEBT.
Based on my own score tracking, my Borrowell score uses Equifax as their source (this is stated on the text shown in one of the CBC video frames). Strangely, neither the CBC presenter brought this up nor did the CEO of Borrowell who did not ,mention that his company uses Equifax as its source. My own credit score tracked for free through my ScotiaBank account uses Trans-Union as their source.
I use bmo app to check my score and I recently checked it in credit karma app which were both the same exact number, in the other hand Borrowell showed my credit score 140 points lower than bmo and credit karma
Pick 1 report & use it as a standard, that's the best. If you take varying reports, a lower quality tenant might appear to be of higher quality. I would just stick with CreditKarma since it's the most widespread & has the most consumer trust, just tell them to make an account & you might end up helping them improve their score in the future too.
@@highstreetkillers4377 that's because the more money you make, the less likely you are to borrow. Capitalism runs off of your need to borrow. It's how banks make billions
If you're saving money the way you're supposed to, you wouldnt need the use of a credit line and would have 3 to 4 months worth of expenses saved for situations like this til you find another job.
Each type of score is for a different purpose, and there's nothing that requires a credit reporting agency to disclose how they rate your credit trustworthiness in each situation. It's quite a different thing to find out if you're trustworthy enough to pay your bills on time then it is to find out if you are trustworthy enough to take on a 25-year long mortgage.
@@dwightstjohn6927 you realize this is Canada right? Opening a bank account here is not the hassle it is in the states. Besides, credit reporting agencies use information from all kinds of creditors. You sound like you're trying to push a conspiracy theory, like the banks are all out to get you.
My mom had a high credit score, they lend her $80 000 when she's a waitress making minimum wage. BS! She never had a chance of paying that off. Meanwhile I have skills and make that in a year and my score wucks. I don't care though. Cash talks better than a score
To be fair, with identity theft on the rise, it's actually a good thing to have at least an indicator just in case someone is screwing with your credit. Credit bureaus are also notoriously incompetent in keeping their records on people straight. Through these tools I was actually able to find out that they accidentally put my sister's student debt under my credit report. Took me months to get it corrected.
So there’s no universal credit score, it’s substantially different depending who you ask, and our beacon score is actually what is taken into account when applying for something but we’re not able to see it or know what it is? This was helpful, but it has just left me more confused lol
Yeah you all are getting screwed. In the US we can actually see that "Beacon" score (as Marketplace points out it's called Fico here) for free in a lot of cases. I have two credit cards that give me free access to at least my Transunion Fico score, I have an account with Experian that gives me my Experian Fico for free, and I can just pay Experian for my Equifax Fico when I need to see it.
Even in America it's confusing. We had our Fico score change because of how often one bank hit it while we were in the process of getting a mortgage with them.
@@bluewaters3100 I got connected to Gibbs, thinking I would get ripped the same way Lexington Law and Actify Solutions ripped me off , but to my biggest surprise on a beautiful shinning Monday morning the credit repair specialist at 'Gibbs@creditpatchup.com' texted me and told me to check my credit , signing in on IdentiyIQ was my most happiest moment of my life... 21 INQUIRIES GONE , 19 COLLECTIONS and others I now have CREDIT SCORE of 790+ , thanks guys 🤗 ....
Here in the US we got the big three Experian , TransUnion, and Equifax and based on the region you live in determines which one of these bureaus will be the most updated and better one to use for you. Experian handles the West Coast, TransUnion the Midwest, and Equifax primarily on the east coast! I didn't know this either until a few months ago!
Yes, it's true your beacon score may well be different from the credit scores from various sources, but the value these credit reports bring is that you get to know if there are any issues/discrepancies with your credit you maybe weren't aware of. If there are, you can identify them and advise your lender before you get the loan.
Interesting! I still think "credit score" is one of the greatest scams and discriminators of our time! When I paid off all my debt, my score went down significantly. Money in the bank, cash flowing paid for rental houses but nope, banks do not like that. No wonder the system went upside down! Really wanted to emote bad records and inquiries off my credit repott i came across 850creditrestoration🎡net just recently after i've been using Lexington Law for over two years, I'm glad i have a clean profile No.
My credit score was in tatters back in 2015 after I moved abroad to work.Both the electric company and internet provider kept charging me for another 6 months after moving out, and I stupidly left no contact info for them.I remember calling the internet provider and even physically going to their site to drop off their equipment. They knew full well my rent contract was finished and I was leaving the country. I also contacted the electric company and made sure they knew my rental contract was finished.I didn't even bother checking my credit score or even getting a credit card for a couple years, since I could afford everything with cash and I wasn't very knowledgeable about any of that. One day, I check my experian because I figured it was time to start being an adult, and find I have 2 collections on file lol.Long story short, it was a nightmare to dispute the collections across multiple credit report files and rebuild my credit. but all thanks goes to Alex of 850CREDITRESTORATION🟡NET best recommendations for any issue relating to credit repairs
Thank you for the great advice and I love your energy! Yes, since pandemic actually made me slow down from working so much and focus more on my persona business. My credit is terrible due to personal situations and neglecting my bills to help my daughter pay for law school. It is my turn! I have been three credit cards and have one more to pay. I have a collections for a medical bill and I am grateful that you mentioned to give them a call and ask for a deletion letter. My main problem are the student loans. The pandemic saved me from having my check garnished from student loans. Long story cut short, 850CREDITRESTORATION🟡NET came to my rescue when needed, I saw some reviews from some women about them online and I went straight to their website to make a request, I'm glad I did cus they delivered at speculated time and all derogatory items in my reports was removed permanently, I am sitting on the 800 score today, thanks guys
This isn't complicated. Each credit reporting company uses its own score. In Canada, the most commonly used credit reporting company is Equifax - which uses the Beacon score. The catch: Banks may run this, but often they will use the information to run their own internal algorithm to come up with their own number that may take into account things such as investments that the credit reporting agencies do not know or track. Borrowell pulls from Equifax so you can expect similar scores and trends. Credit Karma pulls from Transunion so you can expect similar scores and trends. Some of the differences in the scores may be the result of small differences in reported information - especially when the variance is large.
When I lived in Canada for a little while, I had a Canadian credit card and a 856 Canadian credit score (according to my Canadian credit card company that gave out a free credit score). When I move back to the states, I couldn’t even get a credit card because I have no credit history. After four months of being denied, I told operator I have excellent credit in Canada and I’m not even Canadian! She said they can run a Canadian credit check on me and in three days I had a $10,000 USD credit card. Apparently you could use your credit score in different countries, which works out great for students that study abroad.
Credit score sure but your total debt to service ratio is also important. You won't get approved for a 2 million dollar mortgage making 50k a yr even with an 850.
Okay so since I am in the states I will give a little of my experience. 1. Never heard of borrowell. 2. Here many companies do run experion and transunion! In fact many car dealerships run both! 3. After its ran you will get a notice in the mail with your score reguardless of approval or denial. With the denial they will tell you why. This doesnt include the report, score only. 4. We all know credit carma isnt exact. We use it because it's free and gives us the info of what's on our actual report. Plus it educates you on how to get a better score and tells you what's effecting your score both good and bad. I find its nice because if there is a debt I was unaware of I can see that they have reported it. Also they will tell you who has checked your credit report! This helps you detect fraud! Thanks!
That invisible credit problem was what I ran into when I tried to buy my first car. Partner that with a parent with zero financial knowledge (who had to co-sign the loan so I could get the car) and I walked away with the worst ever in history interest rate on a junk car from some sketchy dealership. I basically bought 1 1/2 cars buy the time I paid off the car, I was in the dumps via credit, owed $44k in card debts and 97k in student loans and really couldn’t afford anymore Tried Lexington law a while back and that was just a mistake My cousin referred me to *850CREDITRESTORATION🟢NET* I’m intrigued by their honesty and service
Interesting! I still think "credit score" is one of the greatest scams and discriminators of our time! When I paid off all my debt, my score went down significantly. Money in the bank, cash flowing paid for rental houses but nope, banks do not like that. No wonder the system went upside down! Really wanted to emote bad records and inquiries off my credit repott i came across 850creditrestoration🟡net just recently after i've been using Lexington Law for over two years, I'm glad i have a clean profile No
Hmmm....Thanks CBC...Credit scores are just shenanigans; glad you are producing the truth against this scam. Oh, did I read the CBC fine print? This video production is for ACTUAL educational purposes. Excellent work, Asha Tomlinson! A reasonably large business owner I know has a low credit score because she pays her bills on time and is not in debt.
In the US each reporting company, by law, must on request, give you a free report. Interesting note...Credit reporting companies and card issuers have stated that they feel people have scores that are TO HIGH...and they do their best to knock your score down... How you might ask...By cancelling cards you don't use or don't use often enough...according to them...they will cancel your card and your score goes down...Why, because the "Forgot" to state reason... . So, anytime you cancel a card or a card is canceled due to lack of use make sure the correct reason is listed...These companies state up front...They only report what they're told...they don't investigate, therefore they're not responsible for what they report.
Credit scores are a scam. I have excellent financial reliability but because of an issue with the electric company, even though all my debts are paid off, my score is still stuck at 580 and will not move up even after 2 years. I need a score of 620 to buy a home and my family is homeless. But nobody cares because i have "bad credit". I've reported to credit karma the issue and they still won't do jack squat about it eben when the issue is completely wrong. Shame on you TransUnion and Credit Karma.
The main banks use either TU or EF... and they have an internal score on their customers. That is for your mortgage purposes. As for your score, you must log into the TU or EF site. And point out the discrepancies you see and request an update fix. The system for fixing your errors is much harder than it should be but with proof and a legit email from the actual perpetrators then you can use your evidence to clear your name. Might stay on your credit report for 7 years though. Hope that helps.
Too many factors go into a real “Good” credit score. Credit history, credit age, how many accounts you have open, number of hard inquiries on your score. You could have a 720 credit score, but if you have less than seven years of credit history, you may aswell have a 620, because those are the interest rates you’ll most likely be aligned with having less than 7 years of credit. If you dedicated your life to having perfect credit, you’ll be broke, and likely have a negative net worth.
At one point in my life I had 1 single card with a year of history. A hard pull score showed I had about 734 if I remember. An average score is just that, some credit history but no delinquencies and on time payments. Anyone in a 600 range with 5 years of history must miss payments or have many hard pulls.
Don’t forget what type of occupation that the borrower currently holds. The lenders are looking at that as well. If someone has “excellent to above average or good” credit score with low paying job....this will impact the ability of borrowing to purchase that so-called high-end or average vehicle and/or to buy a decent house with ideal an interest rate. Bottom line, lenders will usually take everything into consideration along with credit score.
As soon as I realized my credit score went DOWN the earlier I paid off my student loans, I knew the whole credit system had no relation to how "financial responsible" you are. All your credit score shows is how comfortable being in debt you are. 1) If you pay for everything up front and are truly financially responsible you won't have a good credit score. 2) If you pay off your debt for something sooner, rather than making minimum payments for years, your credit score will go down. 3) If you check your credit score, your credit score will go down (figure that one out...)
Lol the vast majority of credit cards have the same interest rate I don't even know why that was included in this video. Lines of credit and mortgages would be different for them likely.
Yeah, I found that part kind of pointless too. Interest rates across CCs don't vary a whole lot, from the most basic cards that are easiest to get to the ones that have the highest income/score/limit requirements.. Not including some types of specialized cards and the most prestigious invite-only ones.
they included that part to show you how these credit report companies are taking advantage of you, its not free, they are there to sell you a loan to make money, not give you a free report. In the end, they want your money. After signing up to borrowell, i know get fairstone loan offers in my home mail box almost every other week
Personally I care about my Credit, I get my scores from Transunion, Fico, Equifax and Credit Karma. they vary by a few points in difference, while credit karma does seem to be lower on average. It makes borrowing much easier and cheaper should i ever need money but i try to pay off my loans ahead of time. Also in my city Credit is a must even to just rent most landlords ask for your Fico Score to even be considered for a lease, of course there are many other variables but most consider you depending on your score. The majority of banks use Fico, and TransUnion i got my my car loan at 2% and use my actual cash for other thing i need.
When I was working at home lender, they pull 3 credit scores(Equifax,Transunion,Experien) and use the middle score. These free sites just give you and idea of where you’re at but not accurate
Never heard of Borrowell but when I bought my car the TransUnion report that the dealership used was actually up more than what I went in with on my Credit Karma. I guess since I'm in the US I can do the FICO score but that's a $40/month thing here.
Every time you check your credit (outside the 1 free check/yr), your score is lowered roughly 40 points. Never allow companies /car salesmen to check your credit until you’re absolutely sure about the purchase or loan amount. Car dealers have their own relationships with banks they’ve selected. Providing your score before you’ve negotiated anything diminishes your leverage. It should be the very last stage in any negotiation, not the first.
This isn't exactly a secret. What those public scores can help you do is not only track to make sure what you're doing is having a positive affect (An increase on the public one is also an increase on the Beacon Score, just maybe not 1:1), but also monitor for sharp drops. Sharp drops can be an early sign of identity theft, and knowing about it as early as possible is absolutely a good thing.
Transunion and Equifax both calculate multiple scores for different purposes. If you're applying for mortgage, the bank is going to be looking up a different score than a landlord would if you are renting an apartment. In Canada, Credit Karma and Borrowell don't calculate your score, they specifically give you only your TransUnion CreditVision® Risk Score, and your Equifax Risk Score 2.0, respectively, along with a summary of your credit report. Creditors do not report to to Credit Karma or Borrowell, they report to TransUnion and Equifax. TransUnion and Equifax only update your score to Credit Karma and Borrowell about once a month, whereas if you pay TransUnion or Equifax directly, you can see your credit score change whenever new information is reported. However they still generally do not show you any of your other scores besides your risk score. So long as you use Credit Karma or Borrowell solely for your credit information, and not for their offers of credit, they're both pretty useful, and I've personally been using them both for years.
@@carrickdubya4765 No, you're right. Honestly, I've often heard of divorcees and teens/young adults from abusive families freezing their credit. *EVERYONE SHOULD CONSIDER USING IT THOUGH!* Esp. when cleaning up their debt (imo) 🤷🏽♀
I froze everything. Even the lesser known bureaus like Innovis and ChexSystems. It sure puts the brakes on applying for anything and everything on a whim. It forces me to consider my choices. I got hit with about a dozen rejection letters in rapid succession from cc companies a couple years ago. I was excited about it because that told me the freeze was working. My score was unaffected. If I want a cc, I apply online. Call that bank's customer service and ask what bureau they pull. Then, unfreeze while they're on the phone. They pull, give me my approval then I freeze it again.
The banks in Illinois in the United States only uses Experian Credit reporting agency. And those scores usually come back about 100 points lower than everyone else.
Don’t live your life relying on credit scores. Credit scores are no more than history of how well you play kiss up to the bank. Don’t live beyond your means, pay cash for everything, and live debt free.
Luis g Very good point, a home is prob the one thing you can’t pay cash for upfront. I wouldn’t buy a home unless I’m debt free and it’s affordable based on income. I take most of my thinking from Dave Ramsey. I would check him out if you haven’t, he has very good advice.
Jesse Tucker I think too many people make dumb decisions when it comes to buying cars. Cars depreciate in value too quickly and I think it’s dumb to to buy a new car when a big chunk of the value is lost as soon as it is take off the lot. Too many people get cars they can’t afford and with terrible interest rates. I would pay cash for cars and not have payments. You should never buy a car that exceeds half of your total yearly income.
I can see most of the people needs credit education. Even CBC doesn't understand how credit scores are calculated. If you don't understand the mechanism behind those scores, you won't understand why scores are different. N. B. Credit Karma isn't a credit reporting company
I have never heard of Borrowell. There are different scores from different companies. But the three main agencies (Equifax, Experian and TransUnion) have FICO scores that most lenders check. There are also non-FICO scores that lenders don't use so you are good as long as you have three FICO scores. Credit Karma gives you access to Equifax + TransUnion scores. To get your Experian score you can sign up and download the app and check your score that way. Your credit report is more important than your score anyways. This whole segment did not even cover the basics that you can research in an hour.
I don't think there IS any real score. It's merely a bunch of companies using their own made up formulas to calculate how you handle credit. Example: Trans Union may count bankruptcy as 10% of your score, while Experian would count it as 15%. Hence, the wildly differing results.
Credit score companies are a nightmare. Equifax/Transunion are similar scores for myself and my spouse. My Id was stollen in the Desjardins fiasco. Someone attempted to get loans all over and that was reflected on my credit report. Those inquiries were removed, I learned that a lot of things can impact your score. I signed up for a new cell company, after a month I switched due to the poor service, those 2 credit requests in such a short time can affect your score. One of my banks allows me to see my transunion score for free in their app. Most lenders, in my experience use Equifax.
US FICO scores aren’t even that transparent, I got completely denied for loans with a score in the high 700s because the age of my credit wasn’t factored in well enough
Rule of thumb in the finance/lending business, an applicant has to have a long track record of paying on time. Even if you just started rebuilding credit, any transactions that go as far back as 15 years will be looked into and any defaulted credit card loans, bankruptcies, repossessions, etc (even if they're no longer on your consumer credit report) will pop up when the bank looks at your credit history. Your Debt to Income Ratio plays big into it too. You could have one credit card with a $500 credit limit and get your scores to high 700s in a year but that doesn't mean you're a safe bet for a $10K loan. Paying on time every single month and waiting (time) is what will get financial entities competing for your business.
I have been in the credit lending industry for cars, credit cards and line of credits Equifax and trans union are the only two real credit reporting agencies that the banks in canada will look at in order to determine an approval for your particular case
I am a retired U.S. citizen. Not only did I work for one of the largest banks in the US but I also worked for the largest credit reporting company Experian. You have to remember that these companies do not exist to help you. They are in existence to help businesses. And the businesses pay them a fee everytime they request a credit report on an individual don't get bogged down with all the hype. Do two things submit your request for what you want to a lot of different businesses and secondly keep your mind focused on n the interest rate that is best for you. Example you could apply for a store credit card and be denied even though you have excellent credit. The storemaybe going out of business in six months and not issuing any more credit cards but they're just not disclosing that information to the public at that time.
LOL the credit cards are going to be all around the same interest rates... because that's the rate credit cards are generally at unless you request a low interest credit card. The interest rate difference will only come on mortgages and Lines of credit... SMH
Sean Savoie most low interest rate cards have an annual fee in Canada the banks prefer to sell you a line of credit at a lower rate but they charge you interest the second you use it. There is no grace periods for a line of credit.
@@Sam19509 I am well aware of LOC's and the annual fee's that accompany a low interest rate CC. The video is misleading people into believe if your credit is better than others the interest rate should be better, however, this doesn't translate to CC's as regardless of your score most CC's will always have crazy interest rates.
I thought this was literally common sense??? You look at ur credit score to see if its dropping or rising, to see outstanding loans and to improve your own score, while the actual credit rating was internal
Interesting fact. Borrowell states in their app that the score is provided by Equifax, while Credit Karma states theirs is from TransUnion. I also did see the credit request I made get reflected in the Credit Karma (TransUnion sourced) score and detailed breakdown. So there is a linkage and the scores reflect reality. It good to know that they are not the same as those provided to lenders, however. This also changes the value proposition for using these services. They help you manage your rating to some degree, but only so far as good financial practices and being able to see indidivual detailed credit information will take you. I enjoyed this episode and found it useful.
This is great and all but they didnt tell me why i cant see my own credit score!!! Shouldnt we have that kind of information on hand for ourselves? why should a business check it and my score be affected?
My credit card companies actually all offer monthly credit report updates. I just checked, and all the monthly scores are exactly the same, including the score history. They're all pulling the FICO score directly. I never thought the US would have a leg up on Canada here, of all places.
Variables!! Gone are the days of getting dressed up in your best clothes and going to the local bank and getting a loan based on your (and your family's) reputation. Just like different lenders would, or wouldn't, lend money based on what they personally know about you, the formulas used by lenders now show them what THEY want to see. example: a high unused balance may be good on paper (the score you see) but bad in practice (a bank may not want a liability of an unused balance on their books, or worse if you all of a sudden max out and can't pay). Do what's right for you but pay on time, and don't borrow to live. AND never close your oldest credit card.
I consider myself very familiar being a bank employee with reports and scores. I have never trusted Credit Karma and Borrowell. The scores are not calculated the same. Those companies are using their own proprietary scoring system with probably a algorithm. Another consideration would time. Credit score evaluate the information at hand. Some credit reports contain information from the 1980s. The "bad" credit is totally erased after 7 years or earlier. Judging by my experience of reviews thousands and thousands of these reports. The score could move significantly based on when the companies check for it. The majority of the score looks at the recent history for the past 2 years. I have seen people manage well their debts in recent months but drop in score since they lost past great months from 2 years ago. I would also recommend visiting FCAC (government agency) for more information (google FCAC credit report) about credit bureaus and scores. It will help you understand how to obtain and important criteria. In conclusion, it is a report and score. It will only help to obtain pre-approvals or quick approvals and could affect interest rates especually for products like a personal lines of credit. A human still exists and many other considerations around your capacity to pay and capital/assets will play important factors.
At least borrowell actually stood in front of a camera and answered questions
kuwait85 Underrated comment. Takes a lot to do that people don’t realize.
@@90deltaderivatives35 Yes, except he was full of sh*#.
Except he didn’t really answer anything
Only reason that Rat CEO took the interview was for free advertising due to the fact they are the most unknown of all credit bureau's.
I bet he ended up wishing he didn't. Looked like he was sweating in his pants trying to come up with legit reasons why his website's credit scores are absolutely useless and false.
Finally an insight of how credit scores work . I’ve been saying it all along , why 4 different credit companies always have different scores . Excellent programming ...keep up the good work !!
CBC at it again! Busting the tough questions. Credit scores need to be standardized and fully transparent to the consumer.
Well done CBC. This video clearly shows that a standardized formula should be enforced towards these "educational" organizations that are currently providing their own version of credit score. In fact, it should be made illegal to be called "credit score" since it's misleading and inaccurate for consumers. This secret Beacon score that they speak of should be made available to the public and not just businesses can see.
Lol no surprise here the whole credit system is a scam
💯
Intrest is the basic scam
Thank you!
How that when you dont even know or understand your score. Borrowell is for people mainly bad credit, like yourself. Dont pay your bills on time, borrow too much, max out your credit card limits all affect your score. Not complicated, Read up on the 5 C's of credit. Before you make a dumb statement know what you are talking about
@@michaelbell3952 child support is debtors prison
I respect Borrowell CEO for been a man enough to come on camera and answer questions. Kudos sir. 👍🏿👍🏿👍🏿👌🏿🙏🏿
But he said all the time transparent but never gave any information.
Credit bureaus such as Equifax and TransUnion in Canada should be subject to more coherent and exhaustive legislative and regulatory scrutiny. In my opinion.
A huge scam that should not be allowed to have so much control over our lives
Hows it a scam? Sounds like you have bad credit.
@@yugiohpokemon5285 right. I'm 26. I have 11 credit cards with a total of 80k in credit limit. I make 30k a year and I'm debt free. I only charge what I normally would on a few credit cards and pay it back on full each month. I never paid intrest in my 8 years Uru credit cards. Now if I need to leverage my credit to start a business and make money in the best position.
No it's, you sound like you've been hurt by your scores and therefore couldn't get a rate on anything. These are useful in being able to determine if you're a liability or an asset to anyone lending or letting you use a service or product.
Nah it's a scam. People who know how to game the system can win. But if you want to live a life with zero credit, you're heavily penalized. You can pay off a credit card and your score goes down. It means very little.
@@akatobi2002 for most people, a single credit card that is always paid off in full gives them an average score. Which is fine because do they really need a perfect score? Not unless they are getting loans.
A zero credit score puts a lot of people on edge as you seem risky. If I were a landlord I would be too. Who knows what type of income they make or job history they have.
I think the only beneficial thing to pulling your own credit report on any of these consumer sites is making sure your credit information is accurate. In addition to the score, these reports will tell you how many open credit accounts you have, which is important to check from time to time to ensure no one has stolen your identity and opening credit in your name.
Aliyah Shannelle agreed👐🏿
I stopped caring about my credit score after a 4 year period of my life ware my score fell 200 points all the while I payed off a mortgage, car, doubled my income, and never had a late payment for anything. Its just a scam.
Tony cow exactly!!! I paid my student loans to ZERO and my score dropped
You two have high credit utilization, that's why your scores dropped.
Michal C no I dont have a mortgage or car loan paid my car off🤷🏽♀️ bought a cash house.
Closing an account of an installment loan, especially early temporarily drops your credit score. It affects your # of open accounts, credit diversification and your credit utilization.
You score can drop because closing credit cards or borrowing to much money available to you which can seem as a risk
Long story short: Pay your bills, and stop worrying so much about a made up number.
K Dilli totally. I don’t give two craps about my #. If I borrow money I pay it back as promised. Period
Just a made up number that controls your entire life 😂😂 okay financial ghandi, your wisdom is unmatched. I’ll stick to paying off my bills strategically so I can actually buy a house or get a business loan and you can just keep handing money away on your newest loan with a. 28% interest rate 😂
Exactly...pay your bills on time, pay your credit card balance in full every month, don't max out your cards, don't be asking for new credit every 5 minutes and you'll be fine.
I love Credit Karma. I find their articles and the scores they show me very informative. But that's all those sites are...general information.
@JOHN Q PUBLIC Oh my god... I know what a freaking credit score is.
Hence why I said pay your bills! You're score shouldn't be a concern if you are doing this regularly. I am saying there is a lot you don't know about your score. What you think is your score may not be. Hence, don't stress over it. Get it?
Long story short? I had 2 entires of default made on my credit file from companies that I had no dealings with. No worrying you say? I only found about it when I applied for a loan at my bank.
Great job, CBC team. These are the videos we want to watch on RUclips.
Thank you CBC. I was literally on the phone with Equifax cancelling my monthly membership because of this!
👏🏼👏🏼👏🏼
How was canceling it? Did you have any trouble?
I thought Equifax was a free company as well as the other ones that you could just call up and find out your credit score. I didn't know you had to have a membership
Credit scores are a total scam.
How so?
@@yugiohpokemon5285 technically speaking yes the score you see is a number holding no value in the eyes of lenders... however, the credit report is what you pay for.
@@yugiohpokemon5285 Prime example......pay something off 100% like a car and watch your score dip...why? so the bankers can reap the benefits of higher interest for a new loan....total scam.
It is just a way to control citizens and dont ever let middle class and poor people to go up. Definitely more than just a scam
@@yugiohpokemon5285 I think I can help u understand. Try to pull your report from all credit companies. If ur information isnt correct in all three n again u r giving your own personal data to these companies to update it but why ?? If these companies are not in sync and dont share data then that means there are chances you might get accepted or reject for certain loan if bank pulls the credit report from a company which is showing a lower score which is unfair on you.
This is all crap system.
Just finished deactivating my CreditKarma profile, thanks for information CBC 👌
Good for Borrowell for doing an interview and answering questions
He answered nothing. Just danced around the questions providing little to no transparency into what factors into your score. When asked about the 200 point discrepancy between his company and Beacon, he didn’t provide an answer there either. He was useless to listen to.
When that Borrowell guy said "well we're using it" I laughed out loud.
lol same!
Totally, I lost it!
“I’m going in blind. That’s the game plan” yep he’s going places
I don’t think that individual is gonna qualify for that “high-end” vehicle with “low-end” job. Make no mistake....lenders look at the complete picture....not just the credit score factor (however, it does play a major role) during decision making process from the lenders.
Places?! The universe is our playground
Okay now I got it. It's just a scam to give you credit cards and high interest loans.
At 43, never owned a credit card, I only use my debit card once when I get my wages, rest transactions are done by cash.
Never had a credit score until I went to buy my home, even though I had cash and a good job no debt was told I needed to get more credit aka debt. Went out and 1 credit card and a personal loan. Then I qualified for a mortgage. After that I paid everything off except the mortgage, and haven't worried about my credit score since. Life's great being debt free and just a mortgage. I highly recommend it for normal people who just want to own a home and pay cash for everything else 😁. Credit score is just a way of judging people of who is good at being in debt and KEEPING THEM IN DEBT.
Based on my own score tracking, my Borrowell score uses Equifax as their source (this is stated on the text shown in one of the CBC video frames). Strangely, neither the CBC presenter brought this up nor did the CEO of Borrowell who did not ,mention that his company uses Equifax as its source. My own credit score tracked for free through my ScotiaBank account uses Trans-Union as their source.
I use bmo app to check my score and I recently checked it in credit karma app which were both the same exact number, in the other hand Borrowell showed my credit score 140 points lower than bmo and credit karma
If you’re just an independent landlord you have all the discretion to take whatever score
Pick 1 report & use it as a standard, that's the best. If you take varying reports, a lower quality tenant might appear to be of higher quality. I would just stick with CreditKarma since it's the most widespread & has the most consumer trust, just tell them to make an account & you might end up helping them improve their score in the future too.
Landlords want welfare bums. I almost had to quit my job to get an apartment. Making 80k a year is no good
@@highstreetkillers4377 that's because the more money you make, the less likely you are to borrow. Capitalism runs off of your need to borrow. It's how banks make billions
Credit score .. a rating of your ability to incur a debt !! Nice.
Yeah, it's a debt score
you have to get debt to get more debt.
Slave system
And end up with a home. Not bad
I checked my credit score last month. It was 768. I borrowed $500. Now it's 716. Thanks, TransUnion.
Dave Ramsey has been saying for decades that credit scores are a scam.
Amen!
Dave Ramsey works wonders!
Not when you are suddenly without a job and need your credit line to use.
If you're saving money the way you're supposed to, you wouldnt need the use of a credit line and would have 3 to 4 months worth of expenses saved for situations like this til you find another job.
Crystal looking like she wanna cry all the time
Hasheem K 😅😅😅
I would too with that score
Debt does that
she has the Droopy Dog face
😭😂😂
Well seeing as I somehow already have a 700 credit score after going through a foreclosure this year, I don't really trust mine.
So, why are we not able to have access to our Beacon score information as it’s obviously the main player in determining our credit standing?
That’s their ways of manipulating and exploiting us
Each type of score is for a different purpose, and there's nothing that requires a credit reporting agency to disclose how they rate your credit trustworthiness in each situation.
It's quite a different thing to find out if you're trustworthy enough to pay your bills on time then it is to find out if you are trustworthy enough to take on a 25-year long mortgage.
Banks have black lists, though you're not going to find that out either.
@@dwightstjohn6927 you realize this is Canada right? Opening a bank account here is not the hassle it is in the states.
Besides, credit reporting agencies use information from all kinds of creditors.
You sound like you're trying to push a conspiracy theory, like the banks are all out to get you.
In the US you could
In canada we lack the consumer protections laws
I can respect borrowell for showing up and answering these questions at least
A good credit score is NOT a sign of winning. You could a million dollars in the bank and it’ll have no impact on your credit score.
Todd Stafford right! But, a good credit score does show that you’re able to pay back money you owe.
My mom had a high credit score, they lend her $80 000 when she's a waitress making minimum wage. BS! She never had a chance of paying that off. Meanwhile I have skills and make that in a year and my score wucks. I don't care though. Cash talks better than a score
To be fair, with identity theft on the rise, it's actually a good thing to have at least an indicator just in case someone is screwing with your credit. Credit bureaus are also notoriously incompetent in keeping their records on people straight. Through these tools I was actually able to find out that they accidentally put my sister's student debt under my credit report. Took me months to get it corrected.
“Educational” like you can use it to track a general trend in your credit. Doesn’t mean it’s useless.
True.
The different credit scores could be due to different credit accounts reporting to one and not another.
David Tran if you’re a Canadian, this is a must watch! ruclips.net/video/NPax7r7Kv2c/видео.html
Also, FICO vs VantageScore (at least in the US, that's the majority of the difference between scores from different sites)
I've always wondered how credit scores work. It seems strange that a couple of companies hold all this power over our credit scores.
When I went in for a car loan credit Karma had me 30 points lower than what the dealership said I was at. I dont believe any of it.
- AKOB it literally says on credit karma that it’s a projected score not an accurate score
Credit karma doesn’t check all the bureaus that’s the problem that’s why it’s free
Also, Credit Karma (at least for Transunion score) uses Vantagescore scoring, when pretty much every lender goes off FICO scores.
- Mikhail right karma is vantage score the dealership goes by your fico auto score
So there’s no universal credit score, it’s substantially different depending who you ask, and our beacon score is actually what is taken into account when applying for something but we’re not able to see it or know what it is? This was helpful, but it has just left me more confused lol
Yeah you all are getting screwed. In the US we can actually see that "Beacon" score (as Marketplace points out it's called Fico here) for free in a lot of cases. I have two credit cards that give me free access to at least my Transunion Fico score, I have an account with Experian that gives me my Experian Fico for free, and I can just pay Experian for my Equifax Fico when I need to see it.
Ryan Cavitt it’s strange how according to this video, here in Canada we use Transunion as well, but even that isn’t very accurate.
Even in America it's confusing. We had our Fico score change because of how often one bank hit it while we were in the process of getting a mortgage with them.
Considering he owns a business as well as i do. His credit goes doen when you borrow money to supoort the business and then goes up when its paid off.
19% interest and an 811 credit score?? I can get that with my 550 lol
What card gives you 19% with 550? I want to get that card.
@@bluewaters3100 capital one.
@@bluewaters3100
I got connected to Gibbs, thinking I would get ripped the same way Lexington Law and Actify Solutions ripped me off , but to my biggest surprise on a beautiful shinning Monday morning the credit repair specialist at 'Gibbs@creditpatchup.com' texted me and told me to check my credit , signing in on IdentiyIQ was my most happiest moment of my life... 21 INQUIRIES GONE , 19 COLLECTIONS and others I now have CREDIT SCORE of 790+ , thanks guys 🤗 ....
Here in the US we got the big three Experian , TransUnion, and Equifax and based on the region you live in determines which one of these bureaus will be the most updated and better one to use for you. Experian handles the West Coast, TransUnion the Midwest, and Equifax primarily on the east coast! I didn't know this either until a few months ago!
Christian Tamme 🙏
I know it now.
Yes, it's true your beacon score may well be different from the credit scores from various sources, but the value these credit reports bring is that you get to know if there are any issues/discrepancies with your credit you maybe weren't aware of. If there are, you can identify them and advise your lender before you get the loan.
Interesting! I still think "credit score" is one of the greatest scams and discriminators of our time! When I paid off all my debt, my score went down significantly. Money in the bank, cash flowing paid for rental houses but nope, banks do not like that. No wonder the system went upside down! Really wanted to emote bad records and inquiries off my credit repott i came across 850creditrestoration🎡net just recently after i've been using Lexington Law for over two years, I'm glad i have a clean profile No.
My credit score was in tatters back in 2015 after I moved abroad to work.Both the electric company and internet provider kept charging me for another 6 months after moving out, and I stupidly left no contact info for them.I remember calling the internet provider and even physically going to their site to drop off their equipment. They knew full well my rent contract was finished and I was leaving the country. I also contacted the electric company and made sure they knew my rental contract was finished.I didn't even bother checking my credit score or even getting a credit card for a couple years, since I could afford everything with cash and I wasn't very knowledgeable about any of that. One day, I check my experian because I figured it was time to start being an adult, and find I have 2 collections on file lol.Long story short, it was a nightmare to dispute the collections across multiple credit report files and rebuild my credit. but all thanks goes to Alex of 850CREDITRESTORATION🟡NET best recommendations for any issue relating to credit repairs
Thank you for the great advice and I love your energy! Yes, since pandemic actually made me slow down from working so much and focus more on my persona business. My credit is terrible due to personal situations and neglecting my bills to help my daughter pay for law school. It is my turn! I have been three credit cards and have one more to pay. I have a collections for a medical bill and I am grateful that you mentioned to give them a call and ask for a deletion letter. My main problem are the student loans. The pandemic saved me from having my check garnished from student loans. Long story cut short, 850CREDITRESTORATION🟡NET came to my rescue when needed, I saw some reviews from some women about them online and I went straight to their website to make a request, I'm glad I did cus they delivered at speculated time and all derogatory items in my reports was removed permanently, I am sitting on the 800 score today, thanks guys
This isn't complicated. Each credit reporting company uses its own score. In Canada, the most commonly used credit reporting company is Equifax - which uses the Beacon score. The catch: Banks may run this, but often they will use the information to run their own internal algorithm to come up with their own number that may take into account things such as investments that the credit reporting agencies do not know or track.
Borrowell pulls from Equifax so you can expect similar scores and trends. Credit Karma pulls from Transunion so you can expect similar scores and trends.
Some of the differences in the scores may be the result of small differences in reported information - especially when the variance is large.
I LOVE CBC. Great information and reporting!
When I lived in Canada for a little while, I had a Canadian credit card and a 856 Canadian credit score (according to my Canadian credit card company that gave out a free credit score).
When I move back to the states, I couldn’t even get a credit card because I have no credit history. After four months of being denied, I told operator I have excellent credit in Canada and I’m not even Canadian! She said they can run a Canadian credit check on me and in three days I had a $10,000 USD credit card.
Apparently you could use your credit score in different countries, which works out great for students that study abroad.
Credit score sure but your total debt to service ratio is also important. You won't get approved for a 2 million dollar mortgage making 50k a yr even with an 850.
The only reason why im subbed to cbc channel
So what's being done about it?
Okay so since I am in the states I will give a little of my experience. 1. Never heard of borrowell. 2. Here many companies do run experion and transunion! In fact many car dealerships run both! 3. After its ran you will get a notice in the mail with your score reguardless of approval or denial. With the denial they will tell you why. This doesnt include the report, score only. 4. We all know credit carma isnt exact. We use it because it's free and gives us the info of what's on our actual report. Plus it educates you on how to get a better score and tells you what's effecting your score both good and bad. I find its nice because if there is a debt I was unaware of I can see that they have reported it. Also they will tell you who has checked your credit report! This helps you detect fraud!
Thanks!
That invisible credit problem was what I ran into when I tried to buy my first car. Partner that with a parent with zero financial knowledge (who had to co-sign the loan so I could get the car) and I walked away with the worst ever in history interest rate on a junk car from some sketchy dealership. I basically bought 1 1/2 cars buy the time I paid off the car, I was in the dumps via credit, owed $44k in card debts and 97k in student loans and really couldn’t afford anymore Tried Lexington law a while back and that was just a mistake My cousin referred me to *850CREDITRESTORATION🟢NET* I’m intrigued by their honesty and service
Interesting! I still think "credit score" is one of the greatest scams and discriminators of our time! When I paid off all my debt, my score went down significantly. Money in the bank, cash flowing paid for rental houses but nope, banks do not like that. No wonder the system went upside down! Really wanted to emote bad records and inquiries off my credit repott i came across 850creditrestoration🟡net just recently after i've been using Lexington Law for over two years, I'm glad i have a clean profile No
Hmmm....Thanks CBC...Credit scores are just shenanigans; glad you are producing the truth against this scam.
Oh, did I read the CBC fine print? This video production is for ACTUAL educational purposes.
Excellent work, Asha Tomlinson!
A reasonably large business owner I know has a low credit score because she pays her bills on time and is not in debt.
In the US each reporting company, by law, must on request, give you a free report.
Interesting note...Credit reporting companies and card issuers have stated that they feel people have scores that are TO HIGH...and they do their best to knock your score down...
How you might ask...By cancelling cards you don't use or don't use often enough...according to them...they will cancel your card and your score goes down...Why, because the "Forgot" to state reason...
.
So, anytime you cancel a card or a card is canceled due to lack of use make sure the correct reason is listed...These companies state up front...They only report what they're told...they don't investigate, therefore they're not responsible for what they report.
If there were such a thing as a Debit Score, then nobody would focus on being in debt all the time and the business model of the banks would crumble.
Props to Borrowell for showing up.
They did nothing and deserve nothing.
Credit scores are a scam. I have excellent financial reliability but because of an issue with the electric company, even though all my debts are paid off, my score is still stuck at 580 and will not move up even after 2 years. I need a score of 620 to buy a home and my family is homeless. But nobody cares because i have "bad credit". I've reported to credit karma the issue and they still won't do jack squat about it eben when the issue is completely wrong. Shame on you TransUnion and Credit Karma.
Bs
The main banks use either TU or EF... and they have an internal score on their customers. That is for your mortgage purposes. As for your score, you must log into the TU or EF site. And point out the discrepancies you see and request an update fix. The system for fixing your errors is much harder than it should be but with proof and a legit email from the actual perpetrators then you can use your evidence to clear your name. Might stay on your credit report for 7 years though. Hope that helps.
The reason why I quit borrowing. Work hard save money. Dont pay old debts. Start fresh. These companies rip everyone off.
U S if you’re a Canadian, this is a must watch! ruclips.net/video/NPax7r7Kv2c/видео.html
@@stevescott8884 your link don't work, it says private video...
You can google whom ever you applying to see what credit bureau they pull from b4 applying
Too many factors go into a real “Good” credit score. Credit history, credit age, how many accounts you have open, number of hard inquiries on your score. You could have a 720 credit score, but if you have less than seven years of credit history, you may aswell have a 620, because those are the interest rates you’ll most likely be aligned with having less than 7 years of credit. If you dedicated your life to having perfect credit, you’ll be broke, and likely have a negative net worth.
At one point in my life I had 1 single card with a year of history. A hard pull score showed I had about 734 if I remember.
An average score is just that, some credit history but no delinquencies and on time payments. Anyone in a 600 range with 5 years of history must miss payments or have many hard pulls.
That lady in the middle is SALTY about that kid’s 811 score. Hahahahaha.
Lol
So would I.
Equifax and transunion are actual credit reporting agencies. The other 2 are get info from the first 2.
And CBC couldn't get that simple info. Smh
Don’t forget what type of occupation that the borrower currently holds. The lenders are looking at that as well. If someone has “excellent to above average or good” credit score with low paying job....this will impact the ability of borrowing to purchase that so-called high-end or average vehicle and/or to buy a decent house with ideal an interest rate. Bottom line, lenders will usually take everything into consideration along with credit score.
The scores differ because the they are coming from completely different scoring systems. That wasn’t made very clear here..
And comparing TransUnion and Equifax to CreditKarma and Borrowell makes little sense. The companies do different things.
i thought it was pretty clear when they told us they are all using a slightly differwnt system. What else were they suppose to do? Draw a picture?
As soon as I realized my credit score went DOWN the earlier I paid off my student loans, I knew the whole credit system had no relation to how "financial responsible" you are.
All your credit score shows is how comfortable being in debt you are.
1) If you pay for everything up front and are truly financially responsible you won't have a good credit score.
2) If you pay off your debt for something sooner, rather than making minimum payments for years, your credit score will go down.
3) If you check your credit score, your credit score will go down (figure that one out...)
Lol the vast majority of credit cards have the same interest rate I don't even know why that was included in this video. Lines of credit and mortgages would be different for them likely.
Yeah, I found that part kind of pointless too. Interest rates across CCs don't vary a whole lot, from the most basic cards that are easiest to get to the ones that have the highest income/score/limit requirements.. Not including some types of specialized cards and the most prestigious invite-only ones.
they included that part to show you how these credit report companies are taking advantage of you, its not free, they are there to sell you a loan to make money, not give you a free report. In the end, they want your money. After signing up to borrowell, i know get fairstone loan offers in my home mail box almost every other week
Personally I care about my Credit, I get my scores from Transunion, Fico, Equifax and Credit Karma. they vary by a few points in difference, while credit karma does seem to be lower on average. It makes borrowing much easier and cheaper should i ever need money but i try to pay off my loans ahead of time. Also in my city Credit is a must even to just rent most landlords ask for your Fico Score to even be considered for a lease, of course there are many other variables but most consider you depending on your score. The majority of banks use Fico, and TransUnion i got my my car loan at 2% and use my actual cash for other thing i need.
When I was working at home lender, they pull 3 credit scores(Equifax,Transunion,Experien) and use the middle score. These free sites just give you and idea of where you’re at but not accurate
Experian exited Canada 11 years ago
Never heard of Borrowell but when I bought my car the TransUnion report that the dealership used was actually up more than what I went in with on my Credit Karma. I guess since I'm in the US I can do the FICO score but that's a $40/month thing here.
Every time you check your credit (outside the 1 free check/yr), your score is lowered roughly 40 points. Never allow companies /car salesmen to check your credit until you’re absolutely sure about the purchase or loan amount. Car dealers have their own relationships with banks they’ve selected. Providing your score before you’ve negotiated anything diminishes your leverage. It should be the very last stage in any negotiation, not the first.
This isn't exactly a secret. What those public scores can help you do is not only track to make sure what you're doing is having a positive affect (An increase on the public one is also an increase on the Beacon Score, just maybe not 1:1), but also monitor for sharp drops.
Sharp drops can be an early sign of identity theft, and knowing about it as early as possible is absolutely a good thing.
Transunion and Equifax both calculate multiple scores for different purposes. If you're applying for mortgage, the bank is going to be looking up a different score than a landlord would if you are renting an apartment.
In Canada, Credit Karma and Borrowell don't calculate your score, they specifically give you only your TransUnion CreditVision® Risk Score, and your Equifax Risk Score 2.0, respectively, along with a summary of your credit report.
Creditors do not report to to Credit Karma or Borrowell, they report to TransUnion and Equifax. TransUnion and Equifax only update your score to Credit Karma and Borrowell about once a month, whereas if you pay TransUnion or Equifax directly, you can see your credit score change whenever new information is reported.
However they still generally do not show you any of your other scores besides your risk score.
So long as you use Credit Karma or Borrowell solely for your credit information, and not for their offers of credit, they're both pretty useful, and I've personally been using them both for years.
It all depends on who reports and what. That is where there are different scores usually.
you can't even freeze your credit here in Canada, its a joke.
what do you mean "freeze"you credit?
Consumer alert
@@carrickdubya4765 No, you're right. Honestly, I've often heard of divorcees and teens/young adults from abusive families freezing their credit. *EVERYONE SHOULD CONSIDER USING IT THOUGH!* Esp. when cleaning up their debt (imo) 🤷🏽♀
I froze everything. Even the lesser known bureaus like Innovis and ChexSystems. It sure puts the brakes on applying for anything and everything on a whim. It forces me to consider my choices.
I got hit with about a dozen rejection letters in rapid succession from cc companies a couple years ago. I was excited about it because that told me the freeze was working. My score was unaffected.
If I want a cc, I apply online. Call that bank's customer service and ask what bureau they pull. Then, unfreeze while they're on the phone. They pull, give me my approval then I freeze it again.
I worked for a bank for 5 years and I can attest that experian, equifax and transunion are the ones bank relies on for credit reports.
Borrowell, can USA people use it?
The banks in Illinois in the United States only uses Experian Credit reporting agency. And those scores usually come back about 100 points lower than everyone else.
The borrower is slave to the lender . Pay with cash only borrow money for a house 15 year mortgage.
josh y....or you can just pay in though your card and then pay you bills in full 😂.
josh y yeah ok😂😂😂
Sounds like someone listens to good ol Dave Ramsey! 👍👍👍👍🙋♀️
Credit Karma uses vantage credit score not Fico credit score. Fico is what is used for approvals on cc/loans
Don’t live your life relying on credit scores. Credit scores are no more than history of how well you play kiss up to the bank. Don’t live beyond your means, pay cash for everything, and live debt free.
Juan Becerra
How about when you need to buy a home ? Unfortunately I don’t have 300k to give up front.
Luis g Very good point, a home is prob the one thing you can’t pay cash for upfront. I wouldn’t buy a home unless I’m debt free and it’s affordable based on income. I take most of my thinking from Dave Ramsey. I would check him out if you haven’t, he has very good advice.
What about a car?
Jesse Tucker I think too many people make dumb decisions when it comes to buying cars. Cars depreciate in value too quickly and I think it’s dumb to to buy a new car when a big chunk of the value is lost as soon as it is take off the lot. Too many people get cars they can’t afford and with terrible interest rates. I would pay cash for cars and not have payments. You should never buy a car that exceeds half of your total yearly income.
@@LuisLopez-cp2ys why does it have to be 300k there are more affordable homes???
Very useful video..CBC good job and appreciate it.
I can see most of the people needs credit education. Even CBC doesn't understand how credit scores are calculated. If you don't understand the mechanism behind those scores, you won't understand why scores are different.
N. B. Credit Karma isn't a credit reporting company
Most people need to become debt free and save up cash and stop paying banks to maintain huge buildings through interest.
@@davidpepiton1187 people won't be able to save until unless they give up buying things they can't afford.
@@okletsdoitt I absolutely agree.
I have never heard of Borrowell. There are different scores from different companies. But the three main agencies (Equifax, Experian and TransUnion) have FICO scores that most lenders check. There are also non-FICO scores that lenders don't use so you are good as long as you have three FICO scores. Credit Karma gives you access to Equifax + TransUnion scores. To get your Experian score you can sign up and download the app and check your score that way. Your credit report is more important than your score anyways. This whole segment did not even cover the basics that you can research in an hour.
Lisa Guerrero would have confronted them
Beacon score in Canada & FICO score in USA only available to Businesses not personal individuals.
Either abolish the credit scoring system or standardize the system and give us the damn number.
I'm sick of it.
Yoy can get your score from the 3 main credit bureaus.
@@fauxbro1983 I have, and evidently, none of them are even correct.
Watch the report.
I don't think there IS any real score. It's merely a bunch of companies using their own made up formulas to
calculate how you handle credit. Example: Trans Union may count bankruptcy as 10% of your score, while Experian would count it as 15%. Hence, the wildly differing results.
Credit score companies are a nightmare. Equifax/Transunion are similar scores for myself and my spouse. My Id was stollen in the Desjardins fiasco. Someone attempted to get loans all over and that was reflected on my credit report. Those inquiries were removed, I learned that a lot of things can impact your score. I signed up for a new cell company, after a month I switched due to the poor service, those 2 credit requests in such a short time can affect your score. One of my banks allows me to see my transunion score for free in their app. Most lenders, in my experience use Equifax.
US FICO scores aren’t even that transparent, I got completely denied for loans with a score in the high 700s because the age of my credit wasn’t factored in well enough
Rule of thumb in the finance/lending business, an applicant has to have a long track record of paying on time. Even if you just started rebuilding credit, any transactions that go as far back as 15 years will be looked into and any defaulted credit card loans, bankruptcies, repossessions, etc (even if they're no longer on your consumer credit report) will pop up when the bank looks at your credit history. Your Debt to Income Ratio plays big into it too. You could have one credit card with a $500 credit limit and get your scores to high 700s in a year but that doesn't mean you're a safe bet for a $10K loan. Paying on time every single month and waiting (time) is what will get financial entities competing for your business.
I have been in the credit lending industry for cars, credit cards and line of credits
Equifax and trans union are the only two real credit reporting agencies that the banks in canada will look at in order to determine an approval for your particular case
There are over 100 points difference between credit score companies... great who do I believe.
I am a retired U.S. citizen. Not only did I work for one of the largest banks in the US but I also worked for the largest credit reporting company Experian. You have to remember that these companies do not exist to help you. They are in existence to help businesses. And the businesses pay them a fee everytime they request a credit report on an individual don't get bogged down with all the hype. Do two things submit your request for what you want to a lot of different businesses and secondly keep your mind focused on n the interest rate that is best for you. Example you could apply for a store credit card and be denied even though you have excellent credit. The storemaybe going out of business in six months and not issuing any more credit cards but they're just not disclosing that information to the public at that time.
LOL the credit cards are going to be all around the same interest rates... because that's the rate credit cards are generally at unless you request a low interest credit card. The interest rate difference will only come on mortgages and Lines of credit... SMH
Sean Savoie most low interest rate cards have an annual fee in Canada the banks prefer to sell you a line of credit at a lower rate but they charge you interest the second you use it. There is no grace periods for a line of credit.
@@Sam19509 I am well aware of LOC's and the annual fee's that accompany a low interest rate CC. The video is misleading people into believe if your credit is better than others the interest rate should be better, however, this doesn't translate to CC's as regardless of your score most CC's will always have crazy interest rates.
I ❤ Market Place!
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I thought this was literally common sense??? You look at ur credit score to see if its dropping or rising, to see outstanding loans and to improve your own score, while the actual credit rating was internal
I like credit karma bc I can regularly monitor what’s on my report, & if there is any disputable activity.
Yall need Dave Ramsey!
I was thinking the exact same thing!
Interesting fact. Borrowell states in their app that the score is provided by Equifax, while Credit Karma states theirs is from TransUnion. I also did see the credit request I made get reflected in the Credit Karma (TransUnion sourced) score and detailed breakdown. So there is a linkage and the scores reflect reality. It good to know that they are not the same as those provided to lenders, however. This also changes the value proposition for using these services. They help you manage your rating to some degree, but only so far as good financial practices and being able to see indidivual detailed credit information will take you. I enjoyed this episode and found it useful.
This is great and all but they didnt tell me why i cant see my own credit score!!! Shouldnt we have that kind of information on hand for ourselves? why should a business check it and my score be affected?
My credit card companies actually all offer monthly credit report updates. I just checked, and all the monthly scores are exactly the same, including the score history. They're all pulling the FICO score directly. I never thought the US would have a leg up on Canada here, of all places.
Variables!! Gone are the days of getting dressed up in your best clothes and going to the local bank and getting a loan based on your (and your family's) reputation. Just like different lenders would, or wouldn't, lend money based on what they personally know about you, the formulas used by lenders now show them what THEY want to see. example: a high unused balance may be good on paper (the score you see) but bad in practice (a bank may not want a liability of an unused balance on their books, or worse if you all of a sudden max out and can't pay). Do what's right for you but pay on time, and don't borrow to live. AND never close your oldest credit card.
I consider myself very familiar being a bank employee with reports and scores. I have never trusted Credit Karma and Borrowell.
The scores are not calculated the same. Those companies are using their own proprietary scoring system with probably a algorithm.
Another consideration would time. Credit score evaluate the information at hand. Some credit reports contain information from the 1980s. The "bad" credit is totally erased after 7 years or earlier.
Judging by my experience of reviews thousands and thousands of these reports. The score could move significantly based on when the companies check for it. The majority of the score looks at the recent history for the past 2 years. I have seen people manage well their debts in recent months but drop in score since they lost past great months from 2 years ago.
I would also recommend visiting FCAC (government agency) for more information (google FCAC credit report) about credit bureaus and scores. It will help you understand how to obtain and important criteria.
In conclusion, it is a report and score. It will only help to obtain pre-approvals or quick approvals and could affect interest rates especually for products like a personal lines of credit. A human still exists and many other considerations around your capacity to pay and capital/assets will play important factors.
i believe that Credit score history in Canada and USA need to be standardised and have one system credit which cover every thing !
Why?
each province here has difference tax ranges, price ranges, and minimum wages, so it might not work well