Homeowners not only have the opportunity to build equity with every mortgage payment they make, but their payments also help build their credit history.
Such is not the case for renters, who are basically paying someone else’s mortgage without the benefit of building credit.
Luckily, there are services out there, like Chexy, that can help you build good credit with every rent payment made. Plus, you can use your credit card to pay your rent, which gives you the bonus of earning rewards and cash back (assuming you’ve got a rewards card). Since Chexy payments have recently started to qualify as recurring bills, this means with some cards you can now earn up to 4% cashback on rent.
Let’s take a closer look at Chexy’s features and why it might be worth it to use their services to pay your rent.
Who Is Chexy?
Chexy is a Toronto-based digital platform that lets renters pay their rent using their credit cards. Currently, Chexy is trusted with over $2 million in rent funds every month.
Paying rent with a credit card makes rent payment convenient and allows renters to earn rewards points with every rent payment. Plus, Chexy offers an optional credit-building feature to help renters build good credit with each timely payment made through the online platform.
Our Verdict
| Who is Chexy Best For? | – Renters who want to pay their rent with their credit cards – Renters who want to build good credit – Renters who want to earn points and cash back with their credit cards |
| What We Like | – You can earn credit card points with each rent payment. – You can use Chexy to pay multiple types of bills. – Chexy payments qualify as recurring bills. – Chexy offers an optional credit building feature for free for those who want to build their credit. – Landlords don’t have to sign up for you to use their service. |
| What We Don’t Like | – Fees – No mobile app |
What Does Chexy Offer For Renters?
Chexy comes with a few handy features to make paying your rent as convenient as possible while helping you earn credit card rewards and build good credit:
Earn Rewards
If you have a rewards-based credit card, you can earn points or cash back every time you pay your rent. Given how expensive rent is these days, you could significantly boost your rewards earnings each month simply by switching your rent payment method.
Pay Your Rent Via Credit Card
How much easier would it be if you could just put your rent payment on your credit card, rather than manually sending an e-transfer or writing and handing in a cheque every month? With Chexy, you can simplify your rent payments, saving you time and effort, all while ensuring your rent payments are on time each month.
Four business days before your rent is due, Chexy will charge your credit card and transfer the funds to your Chexy Wallet. Once rent is due, Chexy will send an e-transfer to your landlord. If your landlord only accepts pre-authorized debits (PAD), your landlord can also withdraw the funds from your Chexy Wallet, the same way they would a regular bank account.
Pay Multiple Types Of Bills Via Credit Card
You can also use your Chexy’s Wallet to pay other recurring bills such as your internet, phone, gym, locker, pet insurance, insurance, daycare and more. In fact, you can use Chexy to pay your car lease payments and condo or strata fees.
However, you can only use Chexy to pay these other bills if you regularly use it to pay your rent.
Build Credit
Most landlords only accept cheques or e-transfers as payment for rent as they don’t have the means to accept payments via credit card. This is a big missed opportunity to improve your credit score, especially if you’re in the habit of paying your rent on time every month.
Homeowners who make timely mortgage payments can build good credit with each payment, so why can’t renters? With Chexy’s optional Credit Builder feature, your rent payments will be reported to Equifax and noted on your credit report. Over time, this will help you build good credit, as long as your payments are made on time every month.
Keep in mind that Chexy’s credit builder feature doesn’t require you to use a credit card. You can pay using Visa and Mastercard debit for free and still build credit, as your payments are reported to Equifax.
How Does Chexy Work For Renters?
To pay your rent payments via credit card using Chexy, follow these simple steps:
Step 1: Create A Chexy Account
Set up an account by providing your full name and email address, and create a password. Or, you can set up an account using your Google account.
Step 2: Provide Your Lease Details
Once your account is created, you’ll be asked why you’re using Chexy. You’ll have to choose between the following options: To build credit, to earn rewards on your payments or to make your rent payments more convenient.
During this step, you’ll also be asked to provide details regarding your lease and provide a payment method. You’ll also be required to upload your rental agreement.
Step 3. Choose Your Rent Payment Dates
The next step involves choosing the dates you want to make your rent payments. You’ll also get to set up your credit-building subscription if you opt for it.
Step 4: Enter Your Rental Information
Next, you’ll need to input a little more information about your rent, including:
- Monthly rent amount
- Rent payment due date
- Lease end date
Step 5: Review Your Rent Summary
Chexy will populate the information you provided for you to review to ensure all information is accurate. Then, you’ll receive a confirmation email with your rent summary.
How Will Your Landlord Receive Your Rent?
Each month, Chexy will charge your credit card four business days before your rent is due. They’ll then transfer those funds to your Chexy Wallet. When your rent is due, they’ll send an e-transfer to your landlord to ensure your rent is paid on time. If your landlord prefers pre-authorized debits, they can also directly withdraw your rent from your Chexy Wallet when your rent is due.
What Payment Options Does Chexy Have?
You can pay using the following payment methods:
- Credit card (Visa, and Amex)
- Visa and Mastercard debit
Are There Any Fees To Use Chexy?
Yes, there is a fee of 1.75% of your rent when using a Canadian credit card, and 2.5% of your rent when using a non-Canadian credit card.
- Canadian credit card: 1.75% of your rent
- Non-Canadian credit card: 2.5% of your rent
- Credit Builder (optional): Free
How Does Chexy’s Credit Building Feature Work?
It only takes a few minutes to set up the Credit Builder feature and start building good credit with your rent payments:
- Step 1: Activate Chexy’s Credit Builder Feature – Log into your account and opt into Credit Builder. You’ll also need to upload your lease.
- Step 2. Rent Reports – Chexy will then automatically report your rent payments to Equifax each month, which will be recorded on your report as a new tradeline.
- Step 3: Track Your Payments and Watch Your Credit Score Increase – You can use your Credit Builder account to keep tabs on your rent payment history. This will allow you to see how your credit-building efforts are paying off.
What Are The Benefits Of Chexy’s Credit Building Feature?
Having your rent reported to Equifax can help you build credit from the ground up, or improve damaged credit. This is especially helpful for newcomers to Canada and young adults who are just starting to build credit from scratch. With a higher credit score, you’ll be able to access more financial products in the future, like credit cards, loans, and mortgages.
You can even use Chexy’s Credit Builder to track your rent payment history to see how your efforts are paying off.
How Much Does Chexy’s Credit Building Feature Cost?
Chexy’s Credit Building feature is optional and is free to use.
How Can Chexy Help Landlords?
Landlords can also benefit from having their tenants pay their rent with the help of Chexy. For starters, rent will be paid on time, as the funds are coming from Chexy. Landlords will receive same-day notifications when rent payments are made.
Landlords don’t have to be invited or have to sign up for anything. Instead, they just wait for their rent payments to come in via e-Transfer.
What We Like About Chexy
There are tons of things we love about Chexy:
- Earn credit card rewards. Every purchase you make using your rewards-based credit card allows you to earn points that you can redeem for future purchases. Imagine how many points you can earn with a big monthly expenditure like rent.
- Build good credit. You don’t have to be a homeowner paying a mortgage to build good credit. With Chexy, you can use your timely rent payments to build a healthy credit profile.
- Simplify your rent payments. It’s super convenient to pay your rent using your credit card rather than having to fill out a cheque and physically send it to your landlord every month. And since Chexy makes the e-Transfer to your landlord on your behalf, you can rest assured knowing your rent will be paid on time.
- Landlords don’t have to sign up. There’s no need for landlords to have to set up a Chexy account. All they need to do is accept the e-Transfer for your rent payment. They don’t even have to know you’re using Chexy at all.
- Pay multiple bills – With Chexy, you can pay multiple types of bills all from your Chexy Wallet.
What We Think You Should Watch Out For
As great as Chexy is, there are a couple of drawbacks to consider:
- Cost. The fees can add up when you use Chexy, especially if your rent payments are high. For instance, a 1.75% credit card fee on a $2,000 rent would come to $35 per month or $425 per year. Depending on your credit card’s earn rate, the rewards may not justify the cost of using Chexy to pay your rent with your credit card.
- No app. It would be great to be able to track your Chexy account on your mobile device. Unfortunately, Chexy doesn’t currently offer a mobile app.
How Does Chexy Compare To City Lending
Chexy’s services are unique, but it’s not the only company that allows renters to build credit using their rent payments. City Lending Centers is another service that reports rent payments to the credit bureaus to help consumers build credit from scratch or improve their damaged credit. So, how do these two companies compare?
| Chexy | City Lending Centers | |
| Services Offered | – Rent payments using credit cards (rewards points earned) – Rent reporting for credit building | – Rent reporting for credit building – Credit builder loans – Personal loans – Mortgages – Secured Visa – Bank accounts |
| Payment Types Accepted | – Credit card (Visa and Amex) – Visa and Mastercard debit | – Rent continues to be paid to landlord as per original agreement |
| Cost | – Visa and Mastercard debit: free – Canadian credit card: 1.75% of your rent – Non-Canadian credit card: 2.5% of your rent | – Rent reporting: Annual fee: $60 – Monthly plan: $5/month – Set-up fee: $20 – Credit builder loans: $15 – $96 per month |
City Lending offers several other services besides rent reporting and credit building. On the other hand, Chexy is focused more on making renting a more rewarding experience through the ability to earn rewards and build credit.
However, despite Chexy having fewer services in comparison, it also offers additional perks that City Lending doesn’t: namely, Chexy allows renters to use their credit cards to pay rent. This is a unique service that City Lending does not provide.
Final Thoughts
If you’re paying your rent on time every month, why not use your payments to build good credit? And while you’re at it, why not use your credit card to pay your rent and earn more rewards? Chexy can help make that happen. All you need to do is create an account and connect your card. Your landlord will get paid, and you’ll have a more convenient way of covering your rent payments.
