Area of Law: Landlord and Tenant
Answer # 455
Credit checks on residential applicantsRegion: Ontario Answer # 455
Why are credit checks done?
A credit check involves requesting a copy of an applicant’s Credit Report from one of the major Credit Bureaus (e.g., Equifax or TransUnion). Credit Reports provide valuable insights into a person’s financial stability and payment history to enable lenders and landlords to determine a person’s likelihood and ability to pay rent.
When are credit checks done?
Landlords conduct credit checks when screening potential tenants. Having tenants that will pay rent on time is essential when operating a rental property. Credit checks along with rent reporting are important steps in helping to ensure timely rental payments.
What information can a credit report uncover?
Most credit reports go back six years. In the report there is a summary of the credit data on a consumer that is held by the Credit Bureau, including addresses, employment history, payment history (cell phone, credit cards, mortgages, auto loans), collections and credit inquiries.
How does a landlord conduct a credit check?
With consent, landlords can use FrontLobby to conduct an instant credit check on an applicant. The credit report will include credit score, current and former addresses, employment confirmation, credit history (tradelines), credit balances, collections, bankruptcies, and inquires.
What information does a landlord require to conduct a credit check?
A landlord will need the applicants first and last names, their date of birth and address (SIN is optional and significantly increases the probability of a successful credit report result).
Help for Tenants
A criminal record will affect your ability to be approved for a residential lease. To erase your criminal record, learn more at Pardon Partners. It’s easier than you think.
If you are having financial problems, it may be difficult to rent an apartment or condominium. You can get help to clear your debt and repair your credit. For easy-to-understand debt solutions on your terms, contact our preferred experts 4Pillars and rebuild your financial future. With 60 locations across Canada, they will help you design a debt repayment plan and guide you with compassionate advice. No judgment. For help, visit 4Pillars or call toll-free 1-844-888-0442 .
If you are a Tenant, you can add your monthly rent payment to your credit report using FrontLobby. This can:
- Contribute to improving your credit score (Renters have reported 33pts to 84pts jumps)
- Help establish a positive credit history with a new rent tradeline
- Improve your access to credit related rewards (better bank loans, credit cards, mortgage rates)
Help for Landlords & Property Managers
For legal advice and assistance with a residential tenancy and applications to the Landlord and Tenant Board, contact our preferred Landlord and Tenant experts Nicola (Nick) Giannantonio Legal Services .
If you are a Landlord or Property Manager, you can report rent payments to Credit Bureaus and screen Tenants using FrontLobby. This can:
- Attract financially responsible applicants interested in building credit with their rent
- Decrease rent delinquencies (Landlords have reported 92% reductions) and recover unpaid rent
- Reduce Tenant turnover and improve monthly cash flow
You now haveoptions: