Does credit rating affect renting a home?

Credit scores play a critical role in the rental process in Calgary, and this often comes as a surprise to Ukrainian newcomers who are used to different rental systems. In the Canadian system, credit scores don't just affect renting—they're often the deciding factor in whether you get the place you want, the terms you're offered, and how much you have to pay as a security deposit.

The role of credit scores in the Calgary rental market

Credit scores in Canada range from 300 to 900, with the average Canadian score being around 650. In Alberta, the average credit score ranges from 625 to 650, making this particularly important for successful renting in Calgary.

Most landlords in Calgary consider credit scores to be one of the most important indicators of a potential tenant's reliability. According to a SmartMove study, 84% of landlords cite payment issues as their main concern, and a credit report provides them with valuable information about an applicant's financial history, their ability to pay rent on time, and any significant credit mistakes.

Minimum credit score requirements

There is no universal minimum credit score for renting a home in Canada, but most landlords have certain expectations.

Generally accepted standards in Canada:

  • 600+ points — you will likely have no problem renting
  • 660+ points — you have a good chance of getting a place
  • 670+ points — it is relatively easy to get your rental application approved

Specifics of Calgary and Alberta:

The situation in Calgary is somewhat different from the most competitive markets, such as Toronto or Vancouver. Landlords in Calgary typically look for credit scores in the 625–650 range, which is in line with the provincial average for Alberta.

Difference between private and commercial landlords

An important feature of the Calgary rental market is the difference in approach between different types of landlords.

  • Private landlords typically focus more on income verification than credit scores. They are often more flexible and willing to consider a tenant's special circumstances, especially if there is evidence of stable income.
  • Commercial management companies almost always check both credit scores and income verification. They have more formalized screening procedures and are less likely to make exceptions to their standards.

What landlords look for in a credit report

When a landlord checks a potential tenant's credit report, they look for several key elements.

Payment history

This is the most important factor, showing whether the applicant pays their bills on time. Landlords pay particular attention to:

  • timely payments on credit cards and loans
  • missed or late payments
  • frequency of payment problems

Debt level

If the applicant has had a lot of debt problems in the past, this may discourage the landlord from approving the application. Even if the person is moving into an inexpensive apartment, the landlord may hesitate if the applicant's income is insufficient to cover the rent and debt obligations.

Negative marks

Many landlords also look for any negative marks on a credit report to determine financial risk. Previous evictions, home repossessions, and accounts with collection agencies are red flags for landlords.

Legal aspects of credit checks

Consent for credit checks

In Canada, landlords have the right to request a tenant's credit report when evaluating a rental application, but they must obtain written consent from the tenant. This can be a separate document to sign or a clause in the rental application that allows them to check credit.

Under Alberta's Personal Information Protection Act (PIPA) and the Consumer Protection Act, landlords are required to obtain tenants' consent before ordering a credit report. This protects tenants' privacy and ensures that credit checks are only conducted with their knowledge and consent.

Hard credit inquiries

Credit checks by landlords are considered hard inquiries, which can negatively impact your credit and remain on your credit report for 3-6 years. This means that applying for multiple rentals at the same time can temporarily lower your credit score.

High requirements in prestigious areas

Some new residential complexes in prestigious areas of Calgary have particularly high requirements. For example, a new complex in Bridgeland requires a minimum credit score of 700, which is higher than the city average. These complexes may also require:

  • Income three times higher than the monthly rent
  • Bank statements to confirm savings
  • Additional guarantees of financial stability

These increased requirements reflect the competitiveness of certain segments of the Calgary rental market, especially for new, high-end properties.

Challenges for newly arrived Ukrainians

Lack of Canadian credit history

The biggest challenge for Ukrainian newcomers is the complete lack of Canadian credit history. When Ukrainians arrive in Canada, their credit history from Ukraine is not automatically transferred, which means they start from scratch.

It is important to understand that not having a credit rating is not synonymous with having a bad rating. It simply means a clean slate in the Canadian credit system. However, for landlords, this can represent uncertainty about the applicant's financial reliability.

Discriminatory practices

Research shows that newcomers often face additional challenges in the rental market due to racialization. Landlords may ignore them after learning about their ethnic background or ask uncomfortable questions.

Economic realities

Ukrainian newcomers often arrive with limited savings and live on low incomes, making many apartments in Calgary unaffordable. Even if they offer a prepayment, they may be rejected due to a lack of credit history.

Special support programs for Ukrainians

Support for Ukrainian evacuees

The Alberta government provides special support:

  • Housing support: social housing, rent supplements, emergency assistance
  • Financial support: coverage of security deposits, rent or utility arrears

Calgary Housing Company

Calgary's largest affordable housing manager, managing over 10,000 units. Offers:

  • Social and affordable housing
  • Market-rate housing
  • Programs for Ukrainian evacuees with CUAET visas

Strategies for overcoming low or no credit scores

  • Documenting alternative financial history: savings statements, international credit history
  • Guarantors and co-signers
  • Increased deposits and pre-payments
  • Search for alternative housing options: shared rentals, basement apartments, areas outside of premium locations
  • Build credit history through rent payments: Landlord Credit Bureau, Borrowell Rent Advantage, FrontLobby

The rental application process in Calgary

Required documents:

  • Proof of identity
  • Proof of income and employment
  • Credit report
  • References from previous landlords

Co-signers and guarantors may be required if you have limited history or income.

Alternatives to traditional renting

  • Temporary housing (hotels, homestays)
  • Affordable and subsidized housing

Tips for successful renting without a credit history

  • Be transparent and honest
  • Look for individual landlords
  • Use specialized services
  • Be flexible about rental terms

The Calgary rental market

The Calgary rental market is growing but remains more affordable than Toronto or Vancouver. New tools for building credit history are emerging, and selection systems are expected to become more inclusive.

Conclusion: Credit scores have a significant impact on renting in Calgary, but Ukrainian newcomers can overcome these challenges with the right strategies, transparency, and special support programs.