Build your credit by paying rent
Eva Wong, co-founder and COO of Borrowell, says the program is a unique Canadian program that will help millions of tenants build credit histories using their monthly rent payments without landlord involvement.
“Rent Advantage is a unique Canadian program that allows tenants to use their rent payments to build their credit history,” says Wong. or you don’t have to pay interest. We offer all of this for a monthly fee of $5. »
A Borrowell poll of Canadians with credit scores below 660 found that 68% are renters; nationally, 32% of households identify as renters.
CKPG News contacted local debt solutions company Beverley & Associates and asked them to comment on this new program.
“We haven’t seen the results of that yet. Is a whole new process. And we don’t know how the credit bureaus will report them. We know that Equifax agreed to have it in the form of a report”, explains Melody Desmarais who is vice-president at Beverley & Associates. “How much credibility creditors place on this remains to be seen. So you have to test it first before you know it will succeed.
Desmarais says it’s also important to read the fine print because it’s a self-reporting program.
“You have to register your landlord and the landlord is not necessarily contacted, but it’s linked to your bank account. So every month you have to declare that you have paid your rent,” explains Desmarais. “So if for some reason you miss reporting, it can be flagged negatively. So people who are inconsistent with submitting their reports can see that it may harm them instead of benefit them.”
At this time, Rent Advantage is only available to selected Borrowell members. The plan is to have the rest of this program rolled out by the end of the year. You can also place your name on a waiting list for later consideration.