More Canadians only making minimum payment on credit cards: TransUnion
Some Canadians are seeing their credit card balances grow as the cost-of-living crisis and higher interest rates eat into household budgets, a new report shows.
Equifax Canada is exploring how rent data could factor in to credit scores to help make credit and financial services accessible to more people.
The agency said it has been testing small volumes of rental payment data to assess its suitability.
An Equifax study found that including "alternative data" could establish or enhance the credit scores for millions of Canadians.
"Equifax Canada has been leading the way and has been modelling how rental payments, just like mortgage payments, can help build a credit score," Equifax Canada president and CEO Sue Hutchison said in a news release.
"This is so important for young Canadian consumers, new Canadians and other underserved consumers."
The federal government announced last month it wants to see rental payment history count toward credit scores.
"Renters matter, and young Canadians put a lot of their hard earned money toward rent. We think that should count for a lot more," Prime Minister Justin Trudeau said when he announced several initiatives to help renters on March 27.
In its budget last week, Ottawa called on banks, fintechs and credit bureaus to prioritize launching tools that would allow renters to opt in to reporting their rent payment history.
This could help more renters become homeowners, the government said, as a history of on-time rental payments could strengthen credit scores and make it easier to qualify for a mortgage or a lower interest rate.
Equifax said including rental payments in credit scores will help make credit and mainstream financial services more accessible.
"Renters are a growing part of the Canadian economy and it's time they are recognized for making their rent payments on time," Hutchison said.
Ottawa's announcement was welcomed by some companies, including Equifax Canada, while advocates for renters said it could be a double-edged sword.
Elizabeth Mulholland, chief executive of charity Prosper Canada, said many people are struggling with higher rental costs and may not always be able to pay their rent on time.
Because of that, it's important people have control over whether they want to share rental data with credit bureaus, Mulholland said.
"If you just blanket build it in, that could be problematic for a lot of low income people and vulnerable people," she said.
-- With files from Ian Bickis
This report by The Canadian Press was first published April 23, 2024.
Some Canadians are seeing their credit card balances grow as the cost-of-living crisis and higher interest rates eat into household budgets, a new report shows.
Well into spring, some parts of Canada could experience a wintry comeback, while other areas are bracing for severe thunderstorms, according to local forecasts.
Emergency services in the town of Rigaud, Que. are investigating after a tornado touched down shortly after 5:30 p.m. on Friday.
Kevin McCallister’s childhood home has hit the market for US$5.25 million. At just over 9,000 square feet, the house from the 'Home Alone' movie was last sold in 2012 for $1,585,000.
The 13-year-old sister of a young man killed in the attack on her family’s Mississauga restaurant in 2021 took the stand in a Brampton courthouse on Monday to describe the terrifying moments of coming under fire.
Israeli tanks advanced to the centre of Rafah for the first time on Tuesday, witnesses said, three weeks into a ground offensive in the southern Gaza city that has stirred global condemnation for its continued civilian toll.
Peak tick season is only just beginning but reports of bites – and tick-borne illnesses – are already higher than normal in Ontario.
Slowed or interrupted travel, the passing of goods and significantly restricted borders should be expected if Canadian border workers take upcoming strike action.
Mexico's federal archaeology agency on Monday accused the conservative-governed city of Guanajuato of mistreating one of the country’s famous mummified 19th century bodies.
A Winnipeg pinball wizard is heading to the granddaddy of them all – the IFPA World Pinball Championship.
It’s the chance of a lifetime for a group of Ottawa athletes who are getting ready to represent Team Canada at the World Junior Ultimate championships in the United Kingdom.
Parishioners at Holy Trinity Anglican Church are praying for a monetary miracle, as their historic place of worship could collapse at any moment.
A Saskatchewan man made it to the summit of Mount Everest earlier this month.
IAMGOLD’s Cote Gold open pit mine, located off Highway 144 between Timmins and Sudbury, had its official ribbon-cutting ceremony this week as production ramps up.
When one is extended an invitation to the Royal Garden Party in London, England, there's undoubtedly no shortage of pomp and circumstance. Barrie, Ont. natives Megan Kirk Chang and her husband Brandon experienced just that as they entered the prestigious event hosted at Buckingham Palace on Tuesday.
An unlikely celebrity emerged from social media to cheer on the Edmonton Oilers as they face the Dallas Stars tonight in Game 1 of the Western Conference Finals.
The proprietors of Regina's sole discount theatre are aware they're carrying on a significant legacy.
When Jujhar Mann said he wanted to be a pastry chef on a grade school career project, he didn't imagine that pursuing his dream would land him on a popular Netflix baking competition.