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How Does Reporting or Collections Affect the Tenant’s Credit Score?

Reporting rental debt to the Credit Bureaus can have a negative impact on the Tenants credit.

According to the Financial Consumer Agency of Canada, once your creditor transfers your debt to a collection agency, your credit score will likely go down.

When rental debt is reported to the Credit Bureaus: 

  • Credit scores typically decrease when a debt is reported to the Credit Bureaus
  • Lenders, insurers, Landlords, and even some employers may refuse applications or increase rates when a collection appears on a credit report
  • Debt remains on the credit file until paid, or until the legal/statute of limitations expires