What Is Rent Reporting and Why Do We Need It?

Jun 25, 2024

High-rise buildings with a sign that says "CREDIT"
High-rise buildings with a sign that says "CREDIT"

Let's talk about credit scores for a second. You hear about them all the time, and you're pretty sure they matter (yes, they do). Despite all that, they're still a little… obscure?

We know they're important if you're looking for a mortgage or car loan, but what else? What's a good credit score? How can I affect my credit score? And —more importantly— what's the best way to increase my credit score?

What Is a Credit Score?

Your credit score is the most trusted signal of your creditworthiness. In plain English, it's the main thing lenders look at when deciding whether to give you a loan.

To further crystallize things, a good credit score can be the difference between being approved for a mortgage and having to rent a little longer.

How Is My Credit Score Calculated?

In Canada, your credit score is determined by the two major credit bureaus, Equifax and TransUnion. These credit unions don't just make up your credit score (despite what it might feel like at times). They compile troves of financial data from your bank and creditors to generate a risk image of you.

While the exact formula for calculating your credit score isn't exactly public information, here are some of the things that correlate with a higher credit score:

  1. Low average credit utilization (essentially your credit card payments and balance over your credit limit)

  2. Making payments for bills on time

  3. Fewer credit checks and applications

  4. A greater variety of credit products (credit cards, traditional loan, credit builder loans, line of credit, etc.)

  5. Longer length of credit history

Credit scores range between 300–900 in Canada. Typically, a score of 700 and above is considered good.

How Can I Improve My Credit Score?

Improving your credit score in Canada can have a significant impact on your financial future. Here are some effective strategies to help you boost your credit score:

  1. Report Rent Payments: Utilizing rent reporting services to report rent payments to credit bureaus can significantly improve your credit history. Services like Chexy, the Landlord Credit Bureau, or Borrowell's Rent Advantage Program allow your timely rent payments to be included in your credit report, thereby enhancing your credit score. Make sure to pay your rent on time each month to benefit.

  2. Use a Secured Credit Card: A secured credit card can be an excellent tool for building credit, especially if you have a limited credit history. By making regular, on-time payments with a secured card, you can demonstrate financial responsibility to the major credit bureaus. Over time, this can help you qualify for traditional loans and unsecured credit cards with better terms.

  3. Maintain a Mix of Credit Accounts: Having a variety of credit accounts, such as a credit card, car loan, and a credit builder loan, can positively impact your credit score. This credit mix shows the bureaus that you can handle different types of credit responsibly. However, try to avoid opening too many new accounts at once, as this can negatively affect your credit report.

  4. Keep Card Balances Low: Managing your credit utilization ratio— the amount of credit you’re using compared to your credit limit— is crucial. Aim to keep your credit card balances below 30% of your limit. High balances can signal to lenders that you are over-reliant on credit, which can lower your credit report.

  5. Check Your Credit Reports Regularly: Regularly reviewing your credit reports from the main credit bureaus helps you identify any errors or fraudulent activities. If you find inaccuracies, dispute them to ensure your credit report accurately reflects your financial behaviour. This proactive approach can prevent any unwarranted dips in your credit profile.

What If I'm New to Canada or Just Turned 18?

In either of these cases, you're essentially starting out with no credit score. Keep in mind that this isn't the same thing as having “bad credit.” It simply means that the credit bureaus haven't nailed down an accurate score for you yet.

That said, you will still need to start building credit if you have aspirations of accessing most credit products… and even finding a rental unit. While paying your cell phone bills and groceries with a credit card (and making on time payments) will help you build credit, the process is slow and hampered by what is almost certainly going to be a low limit on your credit card.

If only there were a way to leverage some of the larger expenses you DON'T use your beginner credit card on…. like rent.

What Is Rent Reporting and How Can It Help?

Rent reporting services are in their infancy in Canada but promise the possibility for renters to build credit on their on-time rent payments. This has some really interesting implications for those of us who are just getting started in the country, given that rent tends to be our largest monthly expense. Providing this additional data point to credit bureaus should, in theory, allow renters to build credit history faster.

The implications include getting into a better rental and—arguably more importantly for many of us—owning a home sooner.

Granted, rent is typically the last thing to go when most of us are in a financial pinch, but the opportunity to build credit by reporting rental history payments should be welcomed!

Especially in the midst of economic headwinds, being able to rely on the backbone of your budget (rent) to continue to build your credit, the arrival of rent reporting could not come at a better time.

So… How Do I Report My Rent?

You can opt into Chexy's rent reporting service and ultimately report rent payments to the major Canadian credit bureaus. By paying your rent with Chexy, you begin to generate the rent history credit bureaus need in order to include your rent payments on your credit report. This is payment history that typically lives and dies between you and your landlord, but not anymore.

Reporting on-time rent payments to credit bureaus can help build credit history, make your next rental application more competitive, and ultimately help you qualify for a mortgage and other credit products sooner.


Get started reporting your rent with Chexy today to build credit and earn rewards on rental payments with a credit card.

Subscribe to The Chexy Rundown for exclusive credit card points and travel deals you won't want to miss.

Let's talk about credit scores for a second. You hear about them all the time, and you're pretty sure they matter (yes, they do). Despite all that, they're still a little… obscure?

We know they're important if you're looking for a mortgage or car loan, but what else? What's a good credit score? How can I affect my credit score? And —more importantly— what's the best way to increase my credit score?

What Is a Credit Score?

Your credit score is the most trusted signal of your creditworthiness. In plain English, it's the main thing lenders look at when deciding whether to give you a loan.

To further crystallize things, a good credit score can be the difference between being approved for a mortgage and having to rent a little longer.

How Is My Credit Score Calculated?

In Canada, your credit score is determined by the two major credit bureaus, Equifax and TransUnion. These credit unions don't just make up your credit score (despite what it might feel like at times). They compile troves of financial data from your bank and creditors to generate a risk image of you.

While the exact formula for calculating your credit score isn't exactly public information, here are some of the things that correlate with a higher credit score:

  1. Low average credit utilization (essentially your credit card payments and balance over your credit limit)

  2. Making payments for bills on time

  3. Fewer credit checks and applications

  4. A greater variety of credit products (credit cards, traditional loan, credit builder loans, line of credit, etc.)

  5. Longer length of credit history

Credit scores range between 300–900 in Canada. Typically, a score of 700 and above is considered good.

How Can I Improve My Credit Score?

Improving your credit score in Canada can have a significant impact on your financial future. Here are some effective strategies to help you boost your credit score:

  1. Report Rent Payments: Utilizing rent reporting services to report rent payments to credit bureaus can significantly improve your credit history. Services like Chexy, the Landlord Credit Bureau, or Borrowell's Rent Advantage Program allow your timely rent payments to be included in your credit report, thereby enhancing your credit score. Make sure to pay your rent on time each month to benefit.

  2. Use a Secured Credit Card: A secured credit card can be an excellent tool for building credit, especially if you have a limited credit history. By making regular, on-time payments with a secured card, you can demonstrate financial responsibility to the major credit bureaus. Over time, this can help you qualify for traditional loans and unsecured credit cards with better terms.

  3. Maintain a Mix of Credit Accounts: Having a variety of credit accounts, such as a credit card, car loan, and a credit builder loan, can positively impact your credit score. This credit mix shows the bureaus that you can handle different types of credit responsibly. However, try to avoid opening too many new accounts at once, as this can negatively affect your credit report.

  4. Keep Card Balances Low: Managing your credit utilization ratio— the amount of credit you’re using compared to your credit limit— is crucial. Aim to keep your credit card balances below 30% of your limit. High balances can signal to lenders that you are over-reliant on credit, which can lower your credit report.

  5. Check Your Credit Reports Regularly: Regularly reviewing your credit reports from the main credit bureaus helps you identify any errors or fraudulent activities. If you find inaccuracies, dispute them to ensure your credit report accurately reflects your financial behaviour. This proactive approach can prevent any unwarranted dips in your credit profile.

What If I'm New to Canada or Just Turned 18?

In either of these cases, you're essentially starting out with no credit score. Keep in mind that this isn't the same thing as having “bad credit.” It simply means that the credit bureaus haven't nailed down an accurate score for you yet.

That said, you will still need to start building credit if you have aspirations of accessing most credit products… and even finding a rental unit. While paying your cell phone bills and groceries with a credit card (and making on time payments) will help you build credit, the process is slow and hampered by what is almost certainly going to be a low limit on your credit card.

If only there were a way to leverage some of the larger expenses you DON'T use your beginner credit card on…. like rent.

What Is Rent Reporting and How Can It Help?

Rent reporting services are in their infancy in Canada but promise the possibility for renters to build credit on their on-time rent payments. This has some really interesting implications for those of us who are just getting started in the country, given that rent tends to be our largest monthly expense. Providing this additional data point to credit bureaus should, in theory, allow renters to build credit history faster.

The implications include getting into a better rental and—arguably more importantly for many of us—owning a home sooner.

Granted, rent is typically the last thing to go when most of us are in a financial pinch, but the opportunity to build credit by reporting rental history payments should be welcomed!

Especially in the midst of economic headwinds, being able to rely on the backbone of your budget (rent) to continue to build your credit, the arrival of rent reporting could not come at a better time.

So… How Do I Report My Rent?

You can opt into Chexy's rent reporting service and ultimately report rent payments to the major Canadian credit bureaus. By paying your rent with Chexy, you begin to generate the rent history credit bureaus need in order to include your rent payments on your credit report. This is payment history that typically lives and dies between you and your landlord, but not anymore.

Reporting on-time rent payments to credit bureaus can help build credit history, make your next rental application more competitive, and ultimately help you qualify for a mortgage and other credit products sooner.


Get started reporting your rent with Chexy today to build credit and earn rewards on rental payments with a credit card.

Subscribe to The Chexy Rundown for exclusive credit card points and travel deals you won't want to miss.