Understanding Credit Scores: What Ontario Renters Need to Know

At Caraden Management, we know that searching for a rental home can feel stressful. For many, credit checks are a huge part of that stress. Many renters worry that a less-than-perfect credit score will stand in the way of finding a great place to live. We want to set the record straight: we’re not looking for perfection. We’re looking for patterns.

Life happens, and that’s okay

We understand that life doesn’t always go as planned. Relationships break down, jobs change, and sometimes we get in over our heads. A single missed payment or a rough patch doesn't have to define your future. When we review applications, we look beyond the score.

Beyond your score

We’re interested in the factors that make up your score and how your payment behaviour has changed or improved. While we don’t expect every applicant to have a flawless credit history, your credit report does give us insight into how you manage obligations. It helps us see the bigger picture: do you generally pay your bills on time? Are there signs of improvement? We use this information to make fair, thoughtful decisions, not to judge.

Tips to strengthen your credit (and your rental application)

If you’re working to improve your credit, here are a few practical steps that can make a real difference:

• Avoid letting accounts go to collections. If you’re struggling, communicate with your creditors before things escalate. While we don't know how credit agencies come up with their scores, we do know that collections are highlighted on your report and are actively warned against.

• Keep credit card balances low. If you can’t pay off your cards in full, aim to keep your balances as low as possible. Finance gurus will say keep it under 30%, but we have seen scores improve when balances brought under 80% of your spending limit.

• Always pay at least the minimum. Even if you can’t pay everything, making minimum payments on time helps protect your score. Recognize that making just the minimum payment will keep you paying your balance for years to come and cost you in interest payments. Best advice: pay your bill in full. Realistic advice: make your min. payments on time, every time.

• Check your credit report regularly. Mistakes happen, make sure your report is accurate. Many banks and on-line services will provide your report for free. While these reports will help you see where you stand, they won't be accepted with the rental application.

• Communicate. If you have unique circumstances, let us know. We appreciate honesty and transparency.

  
  

A human approach to tenant selection

If you have questions about the application process or your credit, reach out. We’re happy to talk through your situation and help you put your best foot forward.

Ready to apply or want to learn more? Contact us today.