Rent Payments Now Boost Credit Scores with New Reporting Services

Rent payments often represent one of the largest monthly expenses for individuals, akin to mortgage payments. Traditionally, renters have not had a means to leverage these payments to build their credit history, unlike homeowners. Recent advancements in rent-reporting platforms are now changing this dynamic, allowing renters to enhance their credit profiles by reporting on-time payments to credit bureaus.

SingleKey, along with other platforms like Zenbase, Borrowell, and FrontLobby, serve as intermediaries between renters and landlords. These services enable renters to build their credit history, which can be crucial when applying for a mortgage in the future. “Your rent is your biggest monthly obligation for debt payments, so it’s unfair that it’s not counted towards building your credit,” stated Viler Lika, founder and CEO of SingleKey.

SingleKey operates across Canada and processes over 15,000 rental applications each month. Landlords pay a fee of $30 for tenant screening reports, while renters can report their rent payments for $8 per month. Lika emphasizes the platform’s potential to facilitate home ownership. “This is a very powerful tool for graduating towards home ownership as a renter because you’re demonstrating to the lender that you have the ability to pay a large amount,” he said.

The platform’s design caters to individuals’ changing circumstances, allowing for pauses in reporting when necessary. This feature ensures that moving back in with family, for instance, does not negatively impact a renter’s credit score. Lika argues that rent reporting can enhance housing accessibility for renters while simultaneously reducing the risk of tenant delinquency for landlords.

Conversely, Alex Leduc, CEO and principal broker of Toronto-based mortgage brokerage Perch, raises concerns regarding the implications of rent reporting. “If you stop reporting, it would be a red flag to lenders, and they would dig deeper,” he cautioned. Leduc also points out that if arrears appear on a credit report, it could lead to a decrease in credit scores. He advises against enrolling in rent-reporting programs if there is a likelihood of missed or late payments. “Otherwise, you’re just shining a light on a poor repayment history that would’ve potentially gone unnoticed,” he explained.

Despite the potential drawbacks, Leduc believes that rent reporting could be particularly beneficial for long-term renters, new immigrants, or individuals with limited credit histories. “Not having a credit score is a massive impediment to getting credit at all,” he noted. When seeking a mortgage, lenders typically want assurance that borrowers can manage credit effectively. He identified three vital components of a mortgage application: credit score, down payment, and income. While down payments can sometimes be addressed through family gifts, poor credit can be a serious obstacle.

Stacy Yanchuk Oleksy, CEO of Money Mentors, highlighted common misconceptions surrounding credit ratings and scores. A credit rating is assigned to each credit product on a scale from one to nine, with one indicating responsible payment behavior and nine suggesting severe debt issues, such as collections or bankruptcy. This rating feeds into a three-digit credit score ranging from 300 to 900, which serves as a predictor of repayment likelihood. The higher the score, the more creditworthy an individual is perceived to be.

Oleksy, who is also a certified credit counsellor, emphasized that many misunderstand what influences credit scores. For example, having a high credit limit on a card can be detrimental, even if the balance is paid in full each month. “When your credit score is calculated, it looks at all that available credit and says that’s debt because [theoretically] you could go out to town tomorrow [and spend it],” she explained.

As the landscape of credit building changes, the introduction of rent-reporting services represents a significant shift in how renters can influence their credit profiles. As these platforms gain traction, they may offer a pathway to homeownership for many who have previously struggled with credit history limitations.

This article was first published on September 30, 2025, by The Canadian Press.