When you apply for a loan, rent an apartment, or even set up a cell phone plan, chances are someone will check your credit. But what if you need to check it yourself—or run a credit check on someone else, like a tenant?
Understanding how to do a credit check in Canada is crucial for both individuals and landlords. Whether you’re applying for financing through lenders like SimplePrêt, evaluating a tenant’s history, or simply wanting to know where you stand, this guide will walk you through the process step by step.
What Is a Credit Check?
A credit check is when a person or business reviews your credit report and/or credit score to assess financial reliability. In Canada, credit reports are maintained by two credit bureaus:
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Equifax Canada
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TransUnion Canada
Your report includes:
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Credit accounts (loans, credit cards, mortgages, etc.)
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Payment history
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Outstanding debts
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Public records (bankruptcies, collections, liens)
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Inquiries from lenders
A credit check shows whether you’ve paid bills on time, how much debt you carry, and how responsibly you’ve managed credit in the past.
Types of Credit Checks
Before learning how to do a credit check, it’s important to understand the two main types:
1. Soft Credit Check
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Doesn’t impact your score.
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Typically done when you check your own credit report or when a lender pre-approves you.
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Examples: Checking your score through SimplePrêt’s partner services, pre-qualifications.
2. Hard Credit Check
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Occurs when a lender, landlord, or employer checks your credit.
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Can lower your score slightly if done too often.
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Examples: Loan applications, rental applications, new credit card applications.
How to Do a Credit Check on Yourself
In Canada, you can check your credit report for free at least once a year through the credit bureaus. Here’s how:
1. Request Directly from the Bureaus
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Equifax: Free credit report by mail or online (paid option for score + monitoring).
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TransUnion: Free credit report once a year by mail or online.
2. Use a Lender or Financial Institution
Lenders like SimplePrêt provide credit checks when you apply for loans. This gives you real-time insight into your credit standing and eligibility for financing.
3. Use Free Credit Tools
Banks and fintech apps (e.g., Borrowell, Credit Karma) offer free access to your credit score.
How to Do a Credit Check on a Tenant or Renter
If you’re a landlord in Canada, knowing how to do a credit check on a tenant is essential to protect your property investment.
Step 1: Get Consent
Under Canadian privacy laws, you must have the tenant’s written consent before pulling their credit.
Step 2: Collect Information
Ask for:
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Full legal name
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Date of birth
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Current and past addresses
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SIN (optional, but helps ensure accuracy)
Step 3: Use a Credit Bureau or Service
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Equifax and TransUnion offer landlord packages.
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Tenant screening services like RentCheck Canada also provide detailed reports.
Step 4: Review the Report
Look at:
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Payment history
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Outstanding debts
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Collections
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Credit utilization
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Red flags like frequent late payments
How Long Does a Credit Check Take?
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Online (self-check): A few minutes.
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By mail: 5–10 business days.
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Tenant check through bureaus: Usually same-day or within 24 hours.
When applying for a loan through SimplePrêt, the credit check is instant and doesn’t delay approval.
Why Is Doing a Credit Check Important?
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For Borrowers – Knowing your credit score helps you understand what loans you qualify for, and at what interest rates. SimplePrêt, for example, evaluates your credit to tailor loan options that match your financial profile.
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For Landlords – Prevents renting to high-risk tenants who may miss payments.
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For Businesses – Helps assess whether to extend credit to customers or partners.
What Credit Score Is Considered Good in Canada?
Credit scores in Canada range from 300 to 900:
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Excellent: 760 – 900
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Very Good: 725 – 759
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Good: 660 – 724
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Fair: 560 – 659
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Poor: 300 – 559
Most lenders, including SimplePrêt, consider a score above 660 as good, though financing options may still be available for lower scores.
Can You Do a Credit Check Without Affecting Your Score?
Yes. If you’re checking your own report or using services that perform a soft check, your score won’t be affected. Hard checks, however, may cause a small temporary drop.
How to Improve Your Credit Score After a Credit Check
If your credit check shows issues, here’s how to build your score:
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Pay bills on time.
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Reduce outstanding debt.
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Avoid multiple hard inquiries in a short period.
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Keep credit utilization below 30%.
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Monitor your report regularly for errors.
SimplePrêt also provides guidance for clients with less-than-perfect credit, ensuring fair access to loans.
FAQs About Credit Checks in Canada
1. How often can I check my credit for free?
Once per year from each bureau, but free apps and lenders allow ongoing monitoring.
2. Can I run a credit check on someone without consent?
No. It’s illegal under Canadian privacy laws.
3. How much does a tenant credit check cost?
Usually between $20–$30, depending on the bureau or service.
4. Do all lenders require a credit check?
Not always. SimplePrêt offers flexible loan options, including for clients with bad credit or those seeking no-credit-check loans.
Final Thoughts
Knowing how to do a credit check in Canada empowers you to make better financial decisions—whether you’re applying for a loan, evaluating a tenant, or just tracking your financial health.
With SimplePrêt, Canadians can apply for personal loans and receive instant credit assessments, helping them access the money they need quickly and responsibly.
