Rental Credit Checks Now Classified as Soft Inquiries — What This Means for Tenants
As of November 2024, a significant change has taken place in how rental credit checks are treated by Canada’s major credit bureaus, TransUnion and Equifax. Both agencies have officially classified these checks as soft inquiries, bringing relief and clarity to renters concerned about the impact of tenant screening on their credit scores.
What Is a Soft Inquiry?
A soft inquiry (or soft check) is a type of credit check that does not affect a person’s credit score. Unlike hard inquiries—which are typically triggered by applications for credit cards, loans, or mortgages—soft inquiries do not signal that a consumer is seeking new credit. As a result, they are not factored into credit scoring models used by lenders.
What Does This Mean for Rental Applicants?
With this change, any credit checks performed as part of a tenant screening process will:
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Not appear as an inquiry on a tenant’s credit file visible to lenders.
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Not impact the tenant’s credit score, regardless of how many times they are screened within a short period.
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Apply retroactively to rental credit checks conducted in the past two years.
Will Tenants Still See the Inquiry?
Yes. Although these inquiries will not be visible to lenders or affect credit scores, applicants will still be able to see the rental screening listed in their MyEquifax portal. This provides transparency for renters without compromising their credit standing.
