Having a good credit score is not only essential for securing loans, but it’s also often a requirement for renting an apartment. Landlords often rely on credit scores when vetting prospective tenants as a way to mitigate risk, and even with decent income and good references, you could still be denied a rental if you have bad credit. Luckily, there are actions you can take to increase your chances of finding a good apartment despite having a bad credit score.
Key Points
1. Many landlords check your credit score as part of the tenant vetting process, but there’s no set minimum score to rent an apartment in Canada.
2. Bad credit could potentially hurt your chances of securing a rental, especially in competitive markets.
3. You can boost your chances by showing steady income, low debt, savings and strong references, or by adding a co-signer or guarantor.
4. Deposit rules vary by province. For example, Ontario allows a last month’s rent deposit, while Quebec doesn’t allow deposits at all, so check your local rules before offering money upfront.
5. A landlord needs your consent to check your credit, and you don’t have to give them your SIN.
Can You Rent An Apartment With Bad Credit?
Yes, you can rent an apartment with bad credit, though you may need to work a little harder to convince a landlord. While bad credit can make it more challenging to rent an apartment, it doesn’t mean it’s the end of the road. Whether you have bad credit or no credit (if you’re a young student or newcomer), there are still many options available to you. In fact, many landlords will only ask you for proof of income and references.
That said, if a credit check is required, there are certain things you can do to help improve your candidacy, such as offering a deposit, securing a co-signer and having good references.
The rental market may also be working a little more in your favour than it was a few years ago:
What Credit Score Do You Need To Rent An Apartment In Canada?
There’s no minimum credit score to rent an apartment in Canada. Each landlord sets their own standards, and competitive markets like Toronto and Vancouver may require higher scores. In general, a score of 660 or higher is considered good, and renters with scores above this level should have an easier time getting approved. Large property management companies are more likely to run a credit check than private landlords, who may care more about your income and references.
Here’s how credit scores are generally grouped in Canada2:
| Credit Score Range (Equifax) | Rating | What It Could Mean For Your Rental Application |
|---|---|---|
| 760 to 900 | Excellent | Your credit should not hold you back |
| 725 to 759 | Very Good | You should qualify with most landlords |
| 660 to 724 | Good | You should qualify with many landlords |
| 560 to 659 | Fair | Some landlords may ask for a co-signer or more documents |
| 300 to 559 | Poor | You’ll likely need to strengthen your application |
TransUnion uses slightly different ranges, and you have more than one credit score, so your scores won’t always match.
What’s Considered Bad Credit?
Generally speaking, bad credit is any score below 560, or 300 to 559 on Equifax’s scale.
Before applying for a lease, or any other type of financial product, it’s helpful to check your score first to see where you stand. You can do this quickly and for free using online tools like Loans Canada’s CompareHub.
How To Improve Your Rental Application
Here are a few things you can do to help strengthen your rental application:
Put Together A Rental Application Package
Having all of your documents ready shows a landlord that you’re organized and serious, which can help make up for a weaker credit score. Here’s what to include:
What To Include In Your Rental Application Package
Photo ID
A driver’s licence or passport to confirm your identity.
Proof of income
An employment letter and recent pay stubs, or other proof of steady income.
Proof of savings
Recent bank statements that show you have money set aside for rent.
Your credit report
A recent copy of your report, so there are no surprises when the landlord reviews it.
References
Contact details for past landlords and at least one character reference.
A short cover letter
A brief, honest explanation of your credit situation and what you’ve done to improve it.
Offer A Deposit Or Pay In Advance
If your landlord requires a credit check, offering a deposit can be a sign of good faith. Your landlord may require you to pay a security deposit to secure a lease, but how much they can ask for, and whether you can pay rent in advance, depends on where you live:
| Province | Deposit Rules | Can You Offer More Upfront? |
|---|---|---|
| Ontario | Rent deposit of up to one month’s rent, which can only be used for your last month | You can offer, but a landlord can’t require more than the rent deposit |
| British Columbia | Security deposit and pet damage deposit of up to half a month’s rent each | No. Landlords can’t require or accept more than these limits |
| Alberta | Security deposit of up to one month’s rent | Check with the landlord, since the deposit can’t go over one month’s rent |
| Manitoba | Security deposit of up to half a month’s rent, plus a pet deposit of up to one month’s rent | Check with the landlord, since deposit limits apply |
| Quebec | Security deposits aren’t allowed. A landlord can only ask for your first month’s rent in advance | A landlord can’t require more than the first month’s rent |
Other provinces and territories have their own rules, so check with your local residential tenancy office before you offer extra money. And be wary of potential rental scams that include landlords demanding more money than they’re legally allowed to.
Learn more: Everything You Need To Know About Renting In Canada
Offer Post-Dated Cheques
Giving your landlord post-dated cheques shows that you’ve planned in advance and are committed to paying your rent on time. Being proactive in this way can help offset some of the risk associated with a weak credit profile.
With post-dated cheques in hand, landlords can rest assured knowing that rent payments are already covered for each month. This convenience means they don’t have to hound you for payment, making you a more appealing tenant even if your credit isn’t perfect. Keep in mind that this is something you can offer, not something a landlord can always demand. In Ontario, for example, a landlord can’t require you to provide post-dated cheques or automatic payments.
Use A Co-Signer Or A Guarantor
Sometimes, your credentials may not be strong enough for a landlord, especially in larger cities, where competition between tenants can be fierce.
Having a co-signer or guarantor sign your lease can strengthen your rental application. These individuals have good credit and a strong income, and will back you in case you fail to pay your rent. This reduces the landlord’s risk and, therefore, helps improve your chances of approval.
What If You Don’t Have A Co-Signer?
If you don’t have anyone who can co-sign your lease, you still have options. You can rent with a roommate who has stronger credit, look for a sublet or a room in a shared home, or focus on private landlords who may not run a credit check. Showing proof of savings and a steady income can also help make up for not having a co-signer.
Improve Your Finances
Improving your finances is an important step in strengthening your rental application. To demonstrate a strong financial history, you’ll want to show the following:
- Debt-To-Income Ratio: You need to show the landlord that you have enough income to pay for your rent after all other debts have been paid. This can be demonstrated by calculating your debt-to-income ratio.
- Savings: Despite having bad credit, a substantial savings account shows landlords that you have a sense of financial responsibility, which can save you in case your income becomes insufficient to pay your rent.
Provide An Employment Letter
A stable job is important, as it shows landlords that you’ll have the consistent income needed to cover your rent throughout the year. To prove this, ask your employer for an employment letter stating your income, job title and how long you’ve worked there.
Provide Solid References
Similar to a job or loan application, apartment rental applications can benefit from having references. Landlords often ask for references as a requirement of the rental application. This is a good opportunity to mitigate the effects of a bad credit score.
Types of references you’ll want to use for a rental application include the following:
- Rental References: Future landlords may use these rental references to contact your previous landlord(s) to gauge what kind of tenant you were in the past. These references can provide them with information about how responsible you were with the rent payments and if you were a good tenant overall.
- Character References: To strengthen the reference section of your application, you might want to consider adding a character reference. These references help vouch for your character and humanize you to a landlord. A family friend, client, co-worker, or past employer are all good options for a character reference.
Can You Rent With Bad Credit If You Have A High Income?
Yes, a high and steady income can go a long way toward making up for bad credit. It shows the landlord that you can comfortably afford the rent, even if you’ve had trouble with debt in the past. To make the most of it, include proof of income in your application, like an employment letter and recent pay stubs, and point out any savings you have. Just keep in mind that some landlords will still want to see a credit check, so a high income may not be enough on its own if your credit report shows recent missed payments or collections.
Can Landlords Legally Deny Your Application Due To Bad Credit?
Yes, landlords in Canada are legally permitted to deny a rental application due to bad credit, as long as the decision is based on actual financial concerns and no discrimination is involved. A poor credit score or history of missed payments can be seen as a risk, and landlords may choose to reject an applicant on that basis. If your application is denied due to poor credit, you can ask the landlord what you could improve for next time.
That said, a landlord must have your consent to check your credit. You also don’t have to give your landlord your Social Insurance Number (SIN), since your name, address and date of birth are usually enough for a credit check.
Note: Your Rights In Ontario
Under the Ontario Human Rights Code, a lack of rental or credit history shouldn’t be viewed negatively, which can help if you’re a student or newcomer.
Landlords also can’t use a rent-to-income cut-off, like only renting to people whose rent is under 30% of their income, and they can only ask for a guarantor if they ask all tenants for one.
Where Can You Find An Apartment That Requires No Credit Check?
Most ads for apartment rentals demand three things from you: credit score, proof of income, and references. However, there are some landlords who will only ask you for proof of income and references.
Here are a few possible avenues that can help you find a rental spot without a credit check:
- Online Platforms: There are various online platforms where individuals can post ads for new tenants or roommates. For example, Craigslist, Kijiji, Facebook Marketplace, and neighbourhood groups post rental listings for apartments, condos, townhouses, and houses in your local neighbourhood. Many of the landlords’ postings may not require a credit check.
- Private Landlords: Individual landlords renting out a basement, a condo or a room in their home are often more flexible than large property management companies, which usually have strict screening rules.
- Shared Housing And Sublets: Renting a room in a shared home or taking over someone’s lease through a sublet often comes with less paperwork, and a credit check may not be required.
- Real Estate Agents: Many prospective tenants use real estate agents to look for a place to rent. Agents don’t typically charge tenants to find a place, as their fee is paid by the landlord. If you choose to use a real estate agent, ask them to show you listings that don’t require a credit check.
Learn more: How To Find Cheap Apartments For Rent
What Do Landlords Look For On A Credit Report?
Landlords check your credit to get a sense of how you handle your finances. In particular, they’ll look at your:
- Payment History: Landlords will check your credit report to review your payment history and habits and to determine if they can trust you to pay your rent each month on time.
- Outstanding Debts: A high amount of debt compared to your income may make a landlord worry that you’ll have trouble keeping up with your rent.
- Delinquencies: Bankruptcy, consumer proposals, accounts in collections, and other black marks may prevent a landlord from approving your rental agreement. Certain landlords may feel that these delinquencies make you an untrustworthy tenant.
If you have a bankruptcy or consumer proposal on your report, be upfront about it and explain what you’ve done since to get back on track. A steady income and good references can help show that you’re in a better place financially.
Tips To Remember When Renting With Bad Credit
Here are a few tips to remember to help protect you when renting:
Understand Your Rights As A Tenant
As noted, landlords have specific rights when it comes to choosing their tenants. However, tenants also have their own rights that they can expect when applying for and renting a home in Canada. It’s important for you to understand what your rights and responsibilities are as a tenant, as well as those for landlords.
In Canada, tenant laws and rights vary by province and territory, but all aim to protect renters from unfair treatment and ensure livable housing. More specifically, tenants enjoy the following rights:
- Privacy
- Reasonable enjoyment of the property
- Timely repairs
- Written notice before landlords enter the unit
- No eviction without legal cause
- Rent increase controls
Understanding your local regulations is important for asserting your rights. Be sure to find out the specifics in your province.
Tenant rights and responsibilities across Canada
Start Building Your Credit With Rent Reporting Services
Once you start renting, use your rent to help you rebuild your credit score. Most landlords don’t automatically report rent payments to credit bureaus. However, there are third-party services that can report your rent payments to help you build good credit, such as Landlord Credit Bureau (LCB), Chexy, and Borrowell’s Rent Advantage, which report to Equifax. Consistent, on-time payments can positively impact your payment history, which is one of the most important factors in your credit score.
Learn more: Can Your Rent Payments Help You Build Credit?
If You’re Having Trouble With Your Rent Payments, Get Assistance
Depending on where you live, your provincial government may offer some form of rental assistance to help ensure your rent is covered each month, such as the Canada Housing Benefit, which is delivered through your province or territory. These programs usually provide a monthly benefit to help you cover your rent. Depending on where you live and your financial situation, you may be eligible for a rent assistance program in your province.
Watch Out For Rental Scammers
It can be easy to fall for rental scams, which can leave you in a bad financial situation. The key is to spot the red flags that point to these scams. Here are a few to watch out for:
- The Offer Seems Too Good To Be True: If the offer seems too good to be true, be cautious. Scammers often lure victims with attractive listings or offer super-low rent prices for units that don’t actually exist.
- Urgent Payment Demanded: Be wary if the landlord pressures you to pay a deposit or first month’s rent urgently, claiming other renters are interested or that they’re leaving town soon. Legitimate landlords won’t rush or pressure you for immediate payment.
- Wired Funds Required: Never wire money or send funds using untraceable methods. Once the money is sent, it’s nearly impossible to recover.
- No Showings: Real landlords will be available to show you the unit. If they refuse to show you the place in person for whatever reason, this is a red flag.
- Personal Information Required Upfront: Be cautious if you’re asked for too much personal information upfront, like your SIN or banking details.
- No Address: A legitimate listing should include the property’s exact address. If this detail is missing or not provided, be careful.
If you think you’ve been targeted by a rental scam, report it to the Canadian Anti-Fraud Centre.
Learn more: How To Spot A Rental Scammer
Final Thoughts
Having bad credit can potentially be problematic when looking for a place to rent. The good news is that there are several things you can do to strengthen your rental application. With strong proof of income, low debt, a complete rental package and personal references, you may be able to offset the effects of your bad credit score. Otherwise, take some time to boost your score before applying.
Renting With Bad Credit FAQs
What is the minimum credit score for renting an apartment in Canada?
Can I rent an apartment with a collections account on my credit report?
Is it harder to rent a house or apartment with bad credit?
What do landlords look for in a credit report?
Can a co-signer help me get approved?
Can I offer a larger security deposit to offset bad credit?
Do I have to give my landlord my SIN?
Can I rent an apartment after a consumer proposal or bankruptcy?
How can I improve my chances of getting approved if I have bad credit?
References
- Canada Mortgage and Housing Corporation. (2025). Canada’s vacancy rate rises amid historically high rental construction. https://www.cmhc-schl.gc.ca/media-newsroom/news-releases/2025/canadas-vacancy-rate-rises-amid-historically-high-rental-construction
- Equifax Canada. (n.d.). What is a good credit score? https://www.equifax.ca/personal/education/credit-score/articles/-/learn/what-is-a-good-credit-score/
