Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
According to recent Government statistics, there are more homeowners in the country than there are renters and subletters. In fact, a 2011 National Household Survey showed that close to 70% of Canadians have bought their homes. So, only 30% of people are acquiring their housing through some sort of rental or sublet agreement.
Even though the average cost of renting can be lower than buying a house in some areas, it seems that many people prefer the perks of homeownership. One of the perks of buying a house is that your mortgage payments can help build your payment history, which may help improve your credit scores. Unfortunately, this hasn’t always been an option for renters.
At least until now. With the recent introduction of the Landlord Credit Bureau (LCB), Canadians can now use their rent payment to help them build credit.
As mentioned, it wasn’t until 2020 that landlords started being able to report their tenant’s payments to a credit bureau. Luckily, Landlord Credit Bureau (LCB) recently collaborated with Equifax to form a deal that allows rent payments to show up on your Equifax credit report and count toward the calculation of your Equifax credit score (if you check your TransUnion credit score, you will likely not see your rent payments).
Although this is a relatively new idea in Canada, other places in the world have already introduced similar landlord rental reporting platforms. For instance, in the United States, companies like Rental Kharma and Rent Reporters send their rental payments to the American branch of TransUnion, while Cozy reports to Experian.
All this to say that, yes, your rent payments can now help build your credit, as long as you’re a good tenant and your landlord reports to Landlord Credit Bureau.
Find out who are Canada’s biggest credit bureaus.
Landlord Credit Bureau (LCB) is a consumer reporting agency that allows tenants to establish their payment history through their monthly rent payments, which may help build their credit. To get started, a tenant should create a free account with LCB. With your account, you will have access to your Tenant Record where you view your payment details. You can also invite your landlord to join LCB and view your Tenant Record as well.
Landlord Credit Bureau allows landlords to check your Equifax credit report, the file that contains a record of all your credit-related actions over the past 10 or so years. They may check your report and credit scores when you apply for a lease, so they can get a better idea of how responsible you would be when it comes to making rent.
If you’re a renter, you can use the Landlord Credit Bureau platform to develop your tenant history and obtain benefits of your own. You can even create and monitor your own profile, as well as verify potential landlords or review the ones you’ve had in the past. The better your profile looks, the easier it will be to find and access good rental units.
Check out if you can rent an apartment with bad credit.
As you can see, perhaps the greatest thing about landlords being able to report your rent to LCB is that your payments can help build your payment history on your Equifax credit report. After all, just because someone has poor credit, doesn’t mean they aren’t good at paying their rent on time. Here are some other benefits that come with rent reporting:
Although there are several credit-related benefits of landlords being able to report your rent, it’s equally important to watch out for these potential drawbacks:
Check out 10 common mistakes renters make.
Depending on the credit scoring model used and the information reported to the credit bureaus, the calculation of your credit scores will vary. Meaning when you check your credit scores with Transunion, Equifax, or any third-party credit score provider, they all may be different.
However, there are generally five common factors that are used to calculate your credit scores. Understanding how these can impact your credit scores can help you develop financial habits that can help improve your credit.
For years Canadian renters have not reaped the benefits of making on-time rent payments. But now, with the introduction of the Landlord Credit Bureau(LCB), renters can use their rent payment to help build their payment history which in turn may positively affect their credit scores.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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