Users can report two years of past payments to improve their credit history
Canadian fintech company Borrowell has launched a new program that allows renters struggling to build credit history to use their on-time rent payments to improve their credit scores.
The new program is the first in Canada that lets renters report up to 24 months of past rent payments to Equifax to establish credit history without needing their landlord's involvement.
Borrowell said the program aims to address a gap for renters who consistently make timely payments but receive no credit history benefit.
"We developed this program to make the credit system fairer for renters and to have their track record of responsible financial behaviour be recognized," Borrowell CEO and co-founder Andrew Graham said in a press release.
A Borrowell survey of over 1,500 renter members found that 65% believe they would be in a better financial position if they had started building credit earlier. Moreover, 87% agreed renters should be able to leverage rent payments to build credit history.
The majority of respondents have rented for over 11 years, paying $1,000 to $2,000 monthly – equating to $132,000 to $264,000 in rent with no credit impact, enough for an 18% downpayment on an average Canadian home.
Read more: How can Canadian renters maximize rent reporting systems?
"At Borrowell, we have seen more and more responsible, long-term renters come forward looking for options to build credit. We developed this program to make the credit system fairer for renters," Graham stated.
For a one-time $59 fee, Canadian renters can submit up to 24 months of past rent payments and documentation to Borrowell, which will then report the payment history to Equifax Canada. Users get a full refund if their credit score doesn't increase after the update.
Borrowell’s initiative builds on its Rent Advantage program, launched in 2022, which allowed renters to report timely rent payments to Equifax without landlord involvement. The new option to include up to 24 months of past payments enhances this offering, enabling renters to leverage their payment history for immediate credit-building benefits.
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