What's a credit score? (And its everyday uses)

Well, first let’s talk about what a credit report is. Your credit report shows your history of borrowing and details on any loans you’ve taken out, as well as other info like how many times you get your credit checked and how close you are to maxing out your balance. Oh yeah, and if you’ve been avoiding those parking tickets or your phone bill from 2011, those get written up in your report too. The score is calculated based on secret algorithms using all the above—and more. It can be a measure of risk for lenders who are thinking about whether they want to offer you credit. Generally, they look at your credit score to judge whether you’d be prone to doing things like not paying your bills on time, maxing out your credit cards, etc. etc. But, if you don’t ever use credit, that could also lower your score as you’re not showing that you’re capable of managing credit like a grownup. Canadians’ credit scores Who’s looking at my credit score? Lenders and Financial Institutions Lenders and financial institutions rely on a credit score and report to determine if you’

200,000 MogoMembers down, 800,000 to go.

Well, we did it. We hit 200,000 MogoMembers! Say hello to the country's biggest digital financial platform. As leaders of the FinTech revolution in Canada, this is pretty awesome. Tech is getting bigger and bigger (just look at Uber and Airbnb), and it’s clearer than ever that the traditional way of banking is being left far behind. Last year, McKinsey released a report saying that banks could lose up to 60% of their retail profits to tech startups—oh hey, that’s us—over the next nine years. That being said, this is a huge milestone for not just Mogo, but also FinTech in Canada. The reality is, there hasn’t been a real challenger to the Big 6 banks in Canada since ING Direct—which is now Tangerine and actually owned by one of the Big 6. David Feller, CEO ING Direct was an online bank that grew to over 1.8 million customers and eventually sold to Scotiabank in 2012 for $3.1 billion. So yeah. 200,000 members is pretty big. To put it all into perspective, that’s almost as many members as people who are with Meridian (the largest credit union in Ontario

The MogoLounge: FinTech's getting physical in Toronto

Last time, we told you a bit about the beautiful-striking-gorgeous design of the new MogoLounge on 797 Queen Street West in Toronto. This week, we’re going to share some of our big plans for this rad new space. Mogo HQ, if you will. Get the 360° Mogo experience Of course, you’ll find the usual day-to-day stuff: our Toronto team will be here to walk you through how our unique MogoMoney personal loans work and chat about how to improve your credit score—come by to get your questions answered! And of course, if you feel inspired to create your MogoAccount or want to get on the list to be first in line for the new MogoCards, you can do that here too. Your new home for finance and fun Not only will the new MogoLounge be your home for financial education and a lab for experimenting with and testing new user-experience ideas, it will also be a hub of art and fashion. From pop-up shows to launch parties and shows, we’ll be collaborating with cool brands and creators like Toronto’s very own Kastor & Pollux to throw Instagram-worthy events. The New Third Place People love hanging

Revolving credit: why a loan is smarter than a credit card

You’ve probably been told that credit cards are bad because the interest rate is high. But that’s not the only reason—it’s actually because they’re “revolving credit.” If you’re wondering what the hell revolving credit is, you’re in the right place. Let's ask an adult Revolving credit comes in the form of a credit card or line of credit that lets you immediately re-borrow what you paid back on principal. And many revolving credit products allow you to pay back only the interest. It’s a major reason why so many people find themselves stuck in what feels like an endless cycle of debt. How revolving credit costs you more than a loan The psychology of spending The thing about revolving credit is that it makes it easy and convenient for you to stay in debt. When you pair that with the psychological high of copping the latest pair of shoes / iPhone / whatever your poison is, then it’s not the interest rate you should be worried about anymore. Because let’s face it, whether you get a 5% or 30% rate, you’re probably going to shop and borrow what you paid back

The FinTech Pillars

FinTech represents innovation of financial services products yielding category creation or paradigm shift and causing marketplace disruption. Category creation relates to providing a product that establishes a new market. Paradigm shift occurs when a new solution addresses an existing market in a better way, potentially eliminating the need for the incumbent. The FinTech evolution focused on the consumer world of personal finance management is built on four significant infrastructure technologies. These can be categorized as the FinTech Pillars. The four pillars are the foundation necessary to create the customer panacea of total digital experience. It is basically the foundation of a house before building walls and a roof. The four pillars are: Fulfillment Engine, Customer Self-Service, Customer Relationship Manager and Big Data Analytics. The Fulfillment Engine is the mechanism providing a total automated and frictionless product acquisition experience. Fulfillment is the process that transcends from client application to product deployment. There are numerous technology obstacles to achieve a digital experience. Application input fields need to be minimized. The product acquisition process requires real-time automation of qualification and verification events. Minimizing the application fields and automating approval events is accomplished by the fulfillment engine exploiting Big Data Analytics. Customer Self-Service provides

When Art Meets FinTech: Ola Volo

When you have a giant white wall in the office, it means only one thing: time to get yourself a kickass mural. Well, we happened to have a giant white wall in the office. So… we went and got ourselves a kickass mural. Meet the amazing Ola Volo, (who’s also done murals for Lululemon, Translink, and Save-on Meats). So how did you get into art and mural-making? Ola: I studied design at Emily Carr, moved to Holland to study there for a bit. I was also really inspired by street art and murals that I saw in New York. What I love about murals is that they’re accessible to a lot of people at once. Right, it’s more inclusive as opposed to being limited to people who hang out at art galleries. Ola: Yes! Which leads to starting conversations, especially when you have this very public art that can offer a narrative, bypassing language barriers and cultural differences. It’s like storytelling—but on a large scale. Very cool. Where do you find inspiration for your art? Ola: Oh everywhere. Eastern European, Russian, and Canadian nature folklore, symbolism... I’ve been fascinated by Gustav Klimt’s work

How to improve your credit score and why it matters

One of the awesome things about signing up for a MogoAccount is that you get your credit score for free (paid for by us, provided by Equifax Canada). Oh btw, if you want to get your score somewhere else, be prepared to pony up. Yep, we're basically paying you to get a MogoAccount. 56% of Canadians have never checked their score. Not good. If you're one of them, create your MogoAccount to find out yours now. Knowing your credit score could help you get access to lower loan rates in the future, mortgages—and can be a big part of your dating life. What’s your credit score and where does it fall on the scale of zero to hero? Want to improve your credit score? Here’s what to look for: Fraud or mistakes on your credit bureau. Make sure that everything on the report belongs to you and that the info is correct. If you spot something, it’s time to contact Equifax Canada or Transunion—and do it right away as it can take a while to resolve the issue. An alternative (and quicker way) to get mistakes fixed is to have the creditor who made the

Check your credit score. Know your financial health.

That’s right. When you sign up for a MogoAccount, you’ll get to see if your credit score is hot or not—for free (paid for by Mogo, provided by Equifax). No risk, no stress. It’ll be the most financially responsible thing you do today. Or ever. #AdultingFTW It only takes three minutes. And doesn't impact your credit score. SIGN ME UP *paid for by us, provided by Equifax Canada

Turning bank branch culture on its head: meet Toronto's new MogoLounge

Have you seen that Peep Show on Queen Street West in Toronto? Yes, something’s been brewing behind those blacked out windows the whole time. We’ve been busy preparing for the launch of our new baby and it’s finally ready for you. Meet the MogoLounge: the first step toward ditching bank visits... and changing the way Canadians stay financially fit. Multi-functional design Other than the fact that we’re scheduled to launch on time (that never happens in construction), the design is something that we’re stoked about: clean lines, open space, minimalist + mid-century modern vibe. We’re a design-obsessed brand (just a little bit...) after all. Inspired by the likes of e-commerce innovators like Warby Parker who are creating cool physical brand experiences, we’ll be incorporating hangout areas in the MogoLounge for chill times with chill people. If you thought all the stuff we do online was awesome… wait 'til you check out this lounge in person. A space you’ll actually like being in. With a focus on wicked in-store events, this will be a concept store/show room/party venue all in one. Thanks to Toronto-based design firm Evoke Solutions, the MogoLounge will be

A better digital alternative: why you’ll be ditching your bank

You probably don’t feed your Tamagotchi or play with Pogs anymore, but you might still be going to the bank that you grew up with. (Why would you do that to yourself??) If you didn’t grow up with a big bank or aren’t currently tethered to one, high-five. Canada’s adoption rate of financial technology is 8.2%, which is below the average global rate of 15.5%, and way below Hong Kong’s adoption rate of 29.1%. Which means that most of us are still stuck with our old banks/not exploring or taking advantage of our financial options. But that 8.2% is estimated to double this year, as more and more people become aware of FinTech (and how awesome it is). If you have a MogoAccount right now, you’re already one of these FinTech early adopters. ;) Maslow's Hierarchy of Needs for the 21st Century A huge reason why people are leaving their banks is because of the inefficient/inconvenient/crappy bank experience. Want to get stuff done on the go with your smartphone? Good luck. At Mogo, we’re all about creating an amazing digital experience and we’re always thinking about