What a landlord actually sees when they check your credit

Picture a rental application for a one-bedroom in a tight market. Twenty people viewed it on a Saturday. The form asks for your employer, your income, two references, and a signature authorizing a credit check. For many renters, that last line is the one that makes them nervous, because they have no idea what the landlord is about to see.

This is a walk through what is on that report, why landlords ask for it, and what you can do before you sign the authorization.

Why landlords check credit

A landlord handing over keys is extending a kind of credit: they are trusting you with a home worth far more than one month’s rent, and in most provinces removing a tenant who stops paying takes months. A credit report is one of the few tools they have to judge how someone has handled obligations in the past. It is not the only one, and it is not supposed to be the deciding one, but in a busy market it can tip a decision.

What is on the report

A Canadian credit report from Equifax or TransUnion generally includes your identifying information, your credit accounts and how you have paid them, the balances and limits on those accounts, collections, certain public records such as bankruptcies or consumer proposals, and a list of recent inquiries. Depending on the product the landlord buys, it may also include a score.

What it does not include is just as important. It does not show your income, your bank balance, your savings or your rent history, unless a rent reporting service has added it. That is why landlords also ask for proof of income, and why a renter with a thin file can be at a disadvantage. We explain how rent reporting can change that in can paying rent build your credit?

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A credit report shows how you have handled credit. It says nothing about the ten years of rent you paid on time.

Consent, and the SIN question

A landlord needs your consent to pull your credit report, which is why it appears as a line on the application. You can decline, though the landlord may then decline your application, so think about what you will offer instead.

Many application forms also ask for your Social Insurance Number. In general you are not required to give a landlord your SIN to rent a home, and privacy regulators advise against providing it for a credit check, since a credit bureau can usually identify you from your name, date of birth and address history. If the form asks for it, you can leave it blank and say why.

If your file is thin

Newcomers, students and people who simply avoid credit often have little or nothing on file. A landlord seeing a blank report may read it as risk, even though it is really just an absence of information. You can fill the gap with other evidence: a letter from an employer confirming your job and salary, recent pay stubs or an offer letter, bank statements showing savings, a reference from a previous landlord, including one abroad, and proof of on-time rent from your bank records.

Some landlords may ask for a guarantor or co-signer instead. Be cautious of requests for many months of rent in advance: rules on what landlords can collect up front vary by province, and in some it is restricted. Our guide to rental deposits province by province sets out the limits.

If your file has problems

If you know there is a collection, a late-payment history or a consumer proposal on your file, it is usually better to say so before the landlord finds it. A short, factual note explaining what happened and what has changed since often lands better than silence. Pair it with the same supporting evidence a thin-file applicant would bring.

1. Pull your own reports first

   Both Equifax and TransUnion let Canadians see their own report for free. Check them before you apply so nothing surprises you.

2. Dispute anything wrong

   If an account is not yours or a debt was paid but shows as owing, file a dispute with the bureau. Corrections take time, so start early.

3. Prepare your evidence pack

   Keep income proof, references and a brief explanation note in one folder so you can send them with the application the same day.

The Financial Consumer Agency of Canada explains how to order your reports and dispute errors. For the bigger picture on scores, see your credit score in Canada, explained.