As a young adult, you may finally have the independence to live on your own, but for most people that means renting. More than 80% of Canadians aged 25 to 29 are renters, and younger urban residents make up the largest share of tenants, according to a study by RBC. Renting is a common first step as you begin your career and build savings, but you’ll quickly learn that your credit history and credit score matter when applying for financial products—credit cards, car loans, lines of credit and mortgages all rely on a proven track record of timely payments.
Until recently, monthly rent didn’t help Canadians build credit. New rent-reporting programs have changed that, enabling tenants to turn on-time rent payments into credit-building data. Below, you’ll find clear explanations of how rent reporting works, which programs are available in Canada, and other practical ways to establish or improve your credit history so you can reach financial goals like buying a home.
How rent reporting works
Rent reporting is the process of sharing your rent payment history with the major Canadian credit bureaus, Equifax and TransUnion. When your landlord or a rent-reporting service submits your monthly payments, those records appear on your credit file and can influence your credit score. Both Equifax and TransUnion provide ways to check your credit report for free if you want to review your standing.
Unlike utility bills, phone plans or credit accounts, rent typically isn’t reported automatically. To have rent contribute to your credit history, you must either ask your landlord to report it or sign up with a rent-reporting platform that submits payments on your behalf. That makes rent reporting a voluntary, proactive step you can take to show a pattern of consistent, on-time payments.
Reporting rent can help create or strengthen a credit profile, but be aware it works both ways: missed or late rent payments reported to the bureaus can hurt your score. For that reason, many tenants prioritize rent payments to protect their housing and their credit standing.
Programs that help renters build credit in Canada
With rent costs rising—Rentals.ca reported a national average rent of $2,117 per month in August—tenants who pay reliably should consider having that record reflected on their credit report. Below are several programs available in Canada that can help renters turn on-time rent into credit-building history.
Landlord Credit Bureau (LCB)
The Landlord Credit Bureau (LCB) is a reporting agency that allows landlords and tenants to record rent payments with Equifax. Both parties typically participate: landlords can use reports for tenant screening while tenants can build credit history and demonstrate reliability. Tenants can sign up through the FrontLobby platform. FrontLobby’s Basic plan is free and helps record and track lease details; the Plus plan, which reports rent payments to Equifax, costs $4 per month.
Chexy
Toronto-based Chexy enables tenants to pay rent with major Canadian credit or debit cards and to earn rewards while building credit. You don’t need landlord involvement: create an account, upload your lease, enter the rent amount and due date, then connect a Canadian debit or credit card (Visa, Mastercard and American Express are accepted). Chexy charges $1 per month for debit card payments or 1.75% of your rent when paying by credit card, and it e-transfers the funds to your landlord.
If you want your rent reported to Equifax through Chexy, you can join the Credit Builder program for a monthly fee (promotional pricing may be available). If you pay by credit card, Chexy provides a calculator to estimate rewards such as cash back or loyalty points you may earn with different card providers.
Borrowell’s Rent Advantage
Borrowell’s Rent Advantage allows tenants to report rent payments to Equifax without needing landlord participation. After signing up, you provide lease details and connect a bank account or compatible credit/debit card. The service is available for $8 per month with the option to cancel at any time. Borrowell also offers tools to compare credit cards, mortgages and insurance, and it provides access to your free credit report and score.
Other ways to build credit
Rent reporting is a valuable tool, but it’s not the only way to establish or improve credit. Here are other proven strategies to build a solid credit history.
Use a secured credit card
If you have limited or no credit history—common for newcomers and recent graduates—consider a secured credit card. These cards require a cash deposit that acts as collateral, making them easier to obtain than traditional unsecured cards. Responsible use—paying balances on time and in full—helps build your credit, while missed payments can still result in interest and negative marks.
Take out a credit builder loan
Credit builder loans are designed to help people with little or no credit history. Instead of receiving the loan amount up front, your payments are held by the lender and reported to credit bureaus as you make scheduled payments. Once you complete the term, the saved funds are released to you. These loans are offered by credit unions, smaller banks and online lenders; they can carry higher interest, so confirm you can afford the payments before signing up.
Choose a post-paid cell phone plan
A post-paid cell phone plan can also contribute to your credit profile. Major mobile providers often report payment activity to the credit bureaus, so making regular, on-time payments can have a positive effect on your credit score. As always, paying in full and on time is essential.
Be patient and consistent
Building credit takes time. Consistent financial habits—paying rent and bills on time, using credit responsibly, and monitoring your credit report—will gradually create a stronger credit profile. Over time, those habits make it easier to qualify for better interest rates, favorable credit offers and stronger rental applications. With the tools and programs available today, renters have more opportunities than ever to turn reliable rent payments into a meaningful credit history.
Read more about building credit in Canada:
- Want to raise your credit score in Canada? Avoid these mistakes
- Couples and credit scores: How your partner’s credit can affect yours
- The best credit cards for newcomers to Canada
- The best student credit cards in Canada