Understanding Credit

Helping Renters Prepare for Credit Checks


Landlords are legally allowed to request credit checks from potential tenants. It is a good idea to know what is on your credit report before allowing a landlord to do a credit check.

A credit REPORT will show your full credit history. A credit SCORE will only provide a number based on how good your credit is. Landlords may ask you for your credit report, credit score, or both. Canada’s major credit reporting agencies are Equifax and TransUnion, but you can also get credit information from other private organizations.

HELPFUL LINKS:

CMHC Understanding Credit

Government of Canada website

TRANSUNION: Get your credit REPORT online for free

EQUIFAX: Get your credit REPORT for free, but there is a fee to get the information right away

There are other websites that allow you to access your credit SCORE for free, but they are private companies and may be using your information for their own purposes. These can generally be found online. Always be sure to read and understand the terms and conditions and any fine print before signing up for anything online.

If you do not have good credit, you can try the following:

Focus on landlords who are less likely to do a credit check; for example, where you deal with the owner, and not a property management company’s head office

Explain your situation to the landlord in a positive light

Provide positive references, including landlords who can verify you always paid your rent on time

Provide a co-signer if possible

Set up direct pay for utilities if you receive Ontario Works or Ontario Disability Support Program

Credit Counselling Society

The Credit Counselling Society is a registered, non profit service for consumers, that helps people in Canada solve debt problems, manage money better, and use credit responsibly. Appointments are free and completely confidential. Visit the Credit Counselling Society.