{"id":446,"date":"2018-08-13T18:44:05","date_gmt":"2018-08-13T18:44:05","guid":{"rendered":"https:\/\/rentals.ca\/blog\/?p=446"},"modified":"2018-08-13T18:45:18","modified_gmt":"2018-08-13T18:45:18","slug":"credit-checks-a-complete-guide-for-renters","status":"publish","type":"post","link":"https:\/\/rentals.ca\/blog\/credit-checks-a-complete-guide-for-renters","title":{"rendered":"Credit Checks: A Complete Guide for Renters"},"content":{"rendered":"

As a renter, it can be intimidating to walk into a rental unit only to have the landlord put a bunch of paperwork in front of you. A rental application, credit check, waiver, and so on. These are common practices in the rental industry, but you do have questions about tenant credit checks and how to manage your credit as a renter. <\/span><\/p>\n

We’ve heard all the questions: How can I check my credit score? Can I get it for free? And, what qualifies as a good credit score? Whether you are renting in Ottawa, Toronto, Montreal, Vancouver, or somewhere in between, we are going to demystify tenant credit checks and tell you exactly what you need to know to land your next dream property.<\/span><\/p>\n

Let’s get started.<\/span><\/p>\n

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An introduction to tenant credit checks<\/b><\/p>\n

First of all, let’s introduce what a credit score is for those who are unclear. Your credit score is a <\/span>numerical representation<\/span><\/a> of your credit risk at any given point in time. <\/span><\/p>\n

The credit reporting agencies – <\/span>Equifax<\/span><\/a> and <\/span>TransUnion<\/span><\/a> – employ a sliding scale between 300 and 900. Anything above a 700 is <\/span>considered a good credit score<\/span><\/a>, whereas anything between 600 and 750 is the consumer average. If you fall below 600, then you have some heavy lifting to do.<\/span><\/p>\n

\"lifter<\/p>\n

Don’t worry, we’re here to spot you!<\/span><\/p>\n

Lending institutions, and landlords, use your credit score to determine your creditworthiness \u00a0The idea is that the higher your credit score, the more likely you are to pay your bills. In the lending world, this means it’s easier for you to get a loan, with a lower interest rate. In the world of renting, the higher your score the more favorably you’ll be viewed by landlords.<\/span><\/p>\n

How is your credit score determined? It’s based on your payment history of credit cards, utility and phone bills, loans, car payments, and more. Whoever you are paying these bills to, reports the information to both Equifax and TransUnion. If you’re late on a payment, it is promptly reported and directly affects your credit score.<\/span><\/p>\n

First and foremost on any landlords mind is whether or not you can afford rent and whether or not you will pay on time. Your credit score is the <\/span>best way for a landlord<\/span><\/a> to know this information. This is why you need to not only know your tenant credit profile but to nurture it to help ensure you always have the best possible chance to land that new kickass apartment.<\/span><\/p>\n

Here are a few common questions we hear on a regular basis from renters about tenant credit checks.<\/span><\/p>\n

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How long does a credit check take for renting an apartment, condo or house?<\/b><\/p>\n

Once a landlord has received your approval, they can apply immediately to receive your credit score. They will require either your date of birth or SIN, but it’s always helpful to provide them with both. <\/span><\/p>\n

A tenant credit check takes a few minutes online and a report is immediately created for the landlord to view.<\/span><\/p>\n

If you are serious about a particular property, it’s useful to show up with an updated credit score in hand, so the landlord doesn’t have to do the work. This shows not only that you’re diligent, but that you’re serious about renting their property.<\/span><\/p>\n

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Where to get a credit check in Canada?<\/b><\/p>\n

You have a lot of options! You can go directly to <\/span>TransUnion<\/span><\/a> or <\/span>Equifax<\/span><\/a> to obtain an official copy of your credit score. Typically these reports cost around $20, but they will try and upsell you on monthly credit monitoring products, which aren’t usually necessary. All you need is a one-time credit report.<\/span><\/p>\n

What if you find an error in your credit score? Such as a credit card you never applied for, or a loan you thought you’d closed. You wouldn’t be the first, <\/span>according to CBC<\/span><\/a>, 10-33% of Canadians have errors in their credit scores. Simply contact the lending institution to ensure the issue is cleared up.<\/span><\/p>\n

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Can I check my credit report online for free?<\/b><\/p>\n

Yes! Thankfully for all consumers there are powerful platforms out there that will give you a free personalized credit score. Our favorite is <\/span>Credit Karma<\/span><\/a>. <\/span><\/p>\n

Credit Karma is a portal where Canadians can check their credit report online for free. <\/span><\/p>\n

Once you sign up, you have the option to get an update every single week. Plus, they provide financial education to help you improve your credit profile. Unfortunately for the moment, Credit Karma is not available in Quebec, Nunavut, the Yukon, or the Northwest Territories.<\/span><\/p>\n

Following the sign-up, you will immediately get a credit score dashboard similar to this:<\/span><\/p>\n

As this is not an ‘official’ tenant credit check from Equifax or TransUnion, landlords may not accept it, and conduct their own due diligence \u00a0That said, many <\/span>may<\/span><\/i> accept this, and at the very least you are aware of your credit score and it shows the landlord you are proactive.<\/span><\/p>\n

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So what do apartment credit checks look for?<\/b><\/p>\n

As a landlord, they want to know if you’re conscientious with your finances and if you’ll pay on time. A tenant credit check will tell them if you have any delinquent payments, bankruptcies, or any other financial missteps on your record. <\/span><\/p>\n

Apartment credit checks look for the following information <\/span><\/p>\n