Does Getting Your Rent Payments Reported to Credit Bureaus Actually Help You Build Your Credit in Canada?

By Julien Brault, founder of MooseMoney.

Over the last few years, various rent reporting services have emerged in Canada, most of which only report rent payments data to Equifax. That includes Borrowell Rent Advantage, FrontLobby, and KOHO. More recently, rent reporting company Zenbase announced a partnership with TransUnion Canada that made it the first rent reporting service to report to both Canadian credit bureaus. 

Unlike Equifax, which includes rent payments as a tradeline on its credit report, TransUnion keeps rent payments data separate from its core credit report, and as a result, this data has no impact whatsoever on the TransUnion credit score. Matt Fabian, Director of Financial Services Research at TransUnion, has been clear on this point: "Rent payments typically won't impact your TransUnion credit score."

While rent payment is not a factor itself in how Equifax calculates its score, the fact that rent payments are reported as a tradeline on its credit report means that rent reporting could indirectly impact your Equifax credit score. Given the fact that payment history accounts for 35% of your credit score, a history of on-time rent payment could help you boost your Equifax credit score. That said, the inverse is also true: if you use a rent reporting service and happen to be late on your rent, it could negatively impact your Equifax credit score.

As a result, rent reporting services should not be your main strategy to build your credit score, since you have no control over which bureau a lender checks. If you apply for a mortgage, car loan, or credit card from a lender that relies on TransUnion, your months or years of reported rent payments will have zero effect on the decision.

According to Richard Goyder, Chief Credit Risk Officer at Neo Financial, TransUnion might eventually follow the path of Equifax and include rent payments data on its credit report: "Both bureaus are building rent reporting capabilities and Neo is working with them on this, but for now, it is not part of any score calculation. When rent reporting becomes available, it will contribute to your file as a tradeline, so it can be used by lenders when making credit decisions, but won't have a direct impact on your score."

What Actually Builds Your Credit Score in Canada?

Your credit score is calculated using five main factors: payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). Right now, the most reliable ways to influence these factors involve traditional credit products that both Equifax and TransUnion track automatically.

A secured credit card is one of the most accessible tools for Canadians who are building or rebuilding credit. The Secured Neo Mastercard, for example, requires a refundable security deposit that becomes your credit limit, and it reports your payment activity to both credit bureaus every month. Unlike rent reporting services, this reporting happens automatically and directly feeds into your credit score calculation at both TransUnion and Equifax. For anyone whose primary goal is building a credit score, a product like this will deliver more predictable results than rent reporting does today.

Should You Pay for Rent Reporting Today?

If you already have a thin credit file and you want every possible advantage on your Equifax report, a low-cost rent reporting service could be a reasonable investment. However, if you apply for credit through a lender that uses TransUnion, rent reporting will provide no benefit whatsoever for now. And even with Equifax, the score impact remains indirect at best.

The most effective strategy is to combine rent reporting with proven credit-building tools. Use a secured credit card, keep your utilization below 30%, pay every bill on time, and avoid unnecessary credit applications. Rent reporting can supplement this approach, but it should not be your only plan.