Margaret Adekunle


In today’s rapidly evolving economy, where personal creditworthiness and access to credit are crucial for individual advancement, borrowers are exploring diverse strategies to bolster their credit scores. With consumer debt at unprecedented levels and Bank of Canada rates gradually creeping, Canadians are incredibly seeking innovative ways to maintain creditworthiness and avoid potential credit denials down the line. 

Amidst these challenges, a new solution has emerged: rent reporting to Canadian credit bureaus.

The potential incorporation of rental payment history has the power to redefine the credit landscape. This innovation holds the promise of presenting a more comprehensive and precise representation of an individual’s financial behaviors, thereby unlocking opportunities for enhanced financial prospects across a wide spectrum of Canadians.

Addressing the Gaps in the Current Credit Reporting Landscape 

Traditionally, Canadian credit reporting agencies have primarily focused on tracking credit card usage, loan repayments, and other forms of traditional credit behavior. However, this approach often neglects a significant portion of the population that relies on alternative financial sources, such as renting rather than owning a home. This omission from credit reports can lead to a distorted credit profile, limiting access to loans, mortgages, and other financial products for those without a substantial credit history.

Rent Reporting: A Game-Changer for Financial Inclusion

The introduction of rent reporting to credit bureaus holds the potential to bridge the divide between renters and buyers, thereby enhancing financial inclusion. Rent constitutes a substantial portion of monthly expenses for many individuals, making it a reliable indicator of financial responsibility and stability. Including this information in credit reports provides a more holistic view of an individual’s financial behavior, allowing lenders to make more informed, risk-sensitive lending decisions. 

Key Benefits of Rent Reporting:

  1. Improved Credit Profiles: For individuals with limited or no credit history, rent reporting offers a way to establish a credit record and demonstrate their ability to manage financial commitments responsibly.
  2. Accurate Financial Assessments: Rent reporting provides lenders with a more accurate representation of an individual’s overall financial health, reducing the reliance on traditional credit markers alone.
  3. Enhanced Loan Access: Those previously excluded from credit opportunities due to lack of credit history can now access loans, mortgages, and credit cards with greater ease and at more favorable terms.
  4. Incentive for Responsible Behavior: The inclusion of rent payments in credit reports incentivizes individuals to consistently meet their rent obligations, fostering financial discipline and stability.
  5. Building Long-Term Relationships: Lenders can identify potential borrowers who may have been overlooked by traditional credit evaluation methods, thereby building long-term relationships with a diverse range of customers.

Case-Study: City Lending Centers

One groundbreaking player in the world of credit enhancement is CLA member, City Lending Centers (CLC). CLC extends an open invitation to consumers, inviting them to craft positive credit profiles through a seamless, monthly journey, all at an affordable cost of just $5. CLC’s ethos revolves around inclusivity. CLC doesn’t change how renters pay their rent each month, but it does require their landlords or property managers to participate. Their participation is crucial since they’ll be verifying the rental payments each month. This unique organization extends its embrace even to those in familial rental arrangements. Renters engaging with family-owned properties can also partake, widening the circle of empowerment. As long as the property is owned by a family member, the avenue to credit improvement remains open.

Challenges and Considerations

While the benefits of rent reporting are evident, challenges such as data accuracy, privacy concerns, and standardized reporting methods need to be addressed. Collaboration between CRAs, landlords, and tenants is essential to ensure the quality and security of the data shared.

Paving the Way for a More Inclusive Financial Future

The inclusion of rent reporting within Canadian credit reporting agencies represents a significant step toward a more inclusive financial ecosystem. By capturing a broader spectrum of financial behaviors and demonstrating a commitment to financial responsibility, individuals can access credit on fairer terms. As the financial industry embraces these innovations, the path to financial empowerment and opportunity becomes clearer for all Canadians, regardless of their financial history.

To learn more about City Lending Centers rent reporting plan, click here! 


2023 Lenders Summit



The urgency and necessity for lenders to adapt in the context of exploring innovative lending strategies that address the new-to-canada and new-to-credit market segments, makes the upcoming 2023 Lenders Summit a must attend event. Taking place on November 1st at the MaRS Discovery District in downtown Toronto, the focus of the event will be on networking, partnerships, and driving innovation in the lending sector. 

From Banks and Credit Unions to best-of-breed vendors from the fintech ecosystem, the 2023 Lenders Summit is the hub for networking and business partnerships across all consumer and commercial sectors. Main themes include fraud technology, Identity Verification (IDV), financial data solutioning and supporting new-to-Canada and new-to-Credit.

Sponsorship: A variety of sponsorship opportunities that will help position your organization as an industry leader are still available! Contact for further information. 

View the agenda and register your organization here