Tips for Renting with Bad Credit in Canada

Finding a place to rent in Canada can be stressful, but for those with a poor credit history, the process can feel especially daunting. Landlords often rely on credit checks as part of the screening process, and a low score may raise red flags about your ability to make rent payments on time. 

But the good news? Renting with bad credit is absolutely possible—with the right strategies, transparency, and some proactive steps.

Whether your credit score has taken a hit due to missed payments, high debt levels, or a consumer proposal, this guide will help you navigate the rental process with confidence. Let’s dive into how to rent with bad credit and what you can do to secure a comfortable and stable home.

Understanding Credit Scores and Rental Applications

• What is a Credit Score?

Your credit score is a three-digit number that represents your creditworthiness based on your borrowing history. In Canada, credit scores range from 300 to 900. Lenders—and landlords—use this number to assess how likely you are to pay your debts and obligations.

For rental applications, landlords often review credit reports to gauge your reliability. While a good credit score (typically above 660) can improve your chances of being moved to the top of the potential tenant list, a lower score doesn’t mean you're out of options.

• Minimum Credit Score Requirements

There isn’t a universal “minimum” score required to rent in Canada—it varies by landlord, region, and the type of rental property. While large property management companies might have stricter credit requirements, private landlords may be more flexible.

In general:

• Over 760: Excellent

• 725 to 759: Very good

• 660 to 724: Good

• 560 to 659: Fair

• Under 560: Poor

If your score is on the lower end, be prepared to offer reassurance of your reliability as a tenant through other means, which we’ll explore next.

Tips to Improve Your Rental Application

Even with bad credit, a strong rental application can win over landlords. Here’s how to make your case.

Be Honest and Transparent

Start by being upfront about your credit history. If you're applying with a bad credit score, don’t wait for the landlord to discover it in a report. Instead, explain the context and what steps you’ve taken to recover, whether that’s completing a consumer proposal or consistently paying off debt.

Honesty fosters trust. Many landlords are more open-minded when they see a tenant taking accountability and showing signs of financial improvement.

Provide Strong References

Strong character and rental references can go a long way in proving you're a responsible tenant. Reach out to:

• Previous landlords who can vouch for on-time rent payments

• Employers or colleagues who can speak to your reliability

Positive testimonials may help balance out concerns about your credit.

Offer a Higher Security Deposit

One way to offset a bad credit score is by offering a larger deposit upfront. While not all provinces allow deposits beyond first and last month’s rent (due to tenant law restrictions), some private landlords may accept additional financial assurance within legal limits.

This shows commitment and reduces the perceived risk for the landlord.

Secure a Co-Signer

A co-signer for rental agreements can be a game-changer. This person—usually a parent, family member, or close friend—agrees to cover the rent if you're unable to. They’ll need a strong credit score and income to qualify.

Keep in mind: Being a co-signer is a serious responsibility. Ensure your co-signer understands their obligations and that both parties are comfortable with the arrangement.

Exploring Alternative Rental Options

Not all rentals are created equal. If traditional routes aren’t working, consider some of these alternative rental options.

Private Landlords vs. Property Management Companies

Large property management firms often follow strict policies and may automatically reject applicants with poor credit. In contrast, private landlords are more likely to evaluate applications on a case-by-case basis.

Private landlords may be open to:

• Negotiating terms

• Waiving credit checks

• Accepting higher deposits or co-signers

Try searching on community boards, classifieds, or neighbourhood Facebook groups for more flexible rental opportunities.

Shared Accommodations

Renting a room in a shared house can be a smart interim option. These arrangements typically involve fewer formal requirements, and credit checks may not even be part of the process.

You’ll also save money, which can help you pay down debt and rebuild your credit score faster.

Subletting Opportunities

Subletting involves taking over someone else’s lease—either temporarily or for the remainder of the lease term. In many cases, the original tenant is responsible for the lease, meaning the landlord may not require a full application or credit check.

Just be sure the arrangement is legal and approved by the property owner.

Steps to Improve Your Credit Score

The best long-term solution for renting with bad credit in Canada is to work on improving your credit. Here are actionable steps to get started:

Review Your Credit Report

Start by requesting your credit report from Equifax or TransUnion. Look for:

• Errors (e.g. incorrect balances or missed payments)

• Outdated information

• Signs of identity theft

Correcting mistakes can give your score a small but immediate boost.

Learn more about fixing bad credit.

Pay Bills on Time, Every Time

Timely rental payments are one of the most important factors in your credit score. Make sure to:

• Set up reminders or auto-pay

• Prioritize rent, utilities, and loan repayments

Every late or missed payment weakens your credit profile.

Reduce Outstanding Debts

The more you owe, the more it impacts your score. Start by:

• Paying off high-interest debts first

• Making more than the minimum payment

• Avoiding unnecessary purchases

And remember, a little goes a long way! Making even the minimum payments consistently can lead to big improvements over time.

Limit New Credit Applications

Each time you apply for credit, your score may take a small hit. While it might be tempting to open a new line of credit to improve your “credit mix,” you may want to avoid this unless absolutely necessary. Too many inquiries can signal financial distress to lenders and landlords alike. 

Need to get a clearer picture of your finances? Use our free budget calculator to get started.

Legal Rights and Protections for Tenants

Renting with bad credit doesn’t mean sacrificing your rights.

Understanding Tenant Rights in Canada

Every province has laws protecting tenants from unfair treatment. In most cases, landlords can run credit checks, but they must get your consent first.

Importantly, it’s illegal for a landlord to discriminate based solely on credit score or past financial difficulties if you're a qualified applicant.

To learn more, check your provincial or territorial residential tenancy office.

Resources for Tenant Support

Facing rejection or need help with your rental search? These resources and organizations can provide financial or legal guidance tailored to your situation.

• Credit Canada – Credit counselling services

• Rent assistance programs – Explore programs

• Provincial tenant advocacy groups – Offer legal information and dispute resolution

Butterfly Budgeting App

If you need help building a budget, Butterfly helps you take control of your finances in a simple, intuitive way. Whether you're saving for a security deposit, paying down debt, or just trying to stay on top of monthly expenses, the app acts like your personal budgeting assistant—right in your pocket.

Rent Assistance Programs – Explore Provincial and Municipal Support

Across Canada, there are government and non-profit rent assistance programs designed to support low-income renters or those going through financial hardship. These programs vary by province and municipality, but they can help cover part of your rent, especially if you're spending a large portion of your income on housing.

Some key programs to explore:

• Canada Housing Benefit (CHB): A federal-provincial program offering direct financial support to eligible renters.
• Ontario’s Housing Stability Benefit: Assists with last month’s rent or utility arrears for eligible residents on social assistance.
• BC Rental Assistance Program (RAP): Helps working families with low income pay their rent in the private market.
• Emergency rental assistance programs: Available in some cities and provinces for people facing eviction or sudden income loss.

Even if your credit history is a barrier, rent assistance may reduce your financial stress and make it easier to meet landlord requirements.

Get Help from a Certified Credit Counsellor

If you’re feeling stuck or unsure about how to improve your financial situation, professional support can make all the difference. That’s where Credit Canada comes in. As a trusted non-profit organization, we’ve been helping Canadians manage their money and rebuild their credit for over 50 years. Through free, confidential credit counselling, you can work one-on-one with a certified credit counsellor to:

• Assess your full financial situation

• Create a personalized budget

• Build a plan to repay debt

• Explore options like debt consolidation or consumer proposals

• Learn how to rebuild your credit score

At Credit Canada, we believe everyone deserves a fresh start. Whether you need help budgeting, managing debt, or navigating rental challenges, we’re here to support you. Get started with credit counselling today.