Borrowell Rent Advantage vs. KOHO Rent Reporting

One of the drawbacks of renting versus buying a home is that, unlike with a mortgage, your monthly rental payments aren’t automatically reported to the credit bureau. With factors such as payment history, credit mix and credit history contributing to your credit score, it becomes a missed opportunity for thousands of Canadians trying to boost their credit. 

That’s where rent reporting services such as Borrowell Rent Advantage and KOHO Rent Reporting come in. In this article, we compare the two products and help you decide which one is best suited for your situation. 

Borrowell Rent Advantage Review

Borrowell Rent Advantage allows Canadian renters to boost their credit by reporting their monthly rent payments to their Equifax credit report. You have the option of reporting up to 24 months of past rent history, future monthly rent payments or a combination of both.

How Does Borrowell Rent Advantage Work? 

Rent Advantage gives you the option of reporting past and/or upcoming rent payments to Equifax, which is one of Canada’s two primary credit bureaus. Here’s how the process works:

1. Choose your plan: Decide whether you want to report future rent payments or add up to 24 months of past rent payments for a discount. 

2. Confirm your rent payments: Upload your bank statements and rental receipts to Borrowell for verification. 

3. Reporting of payments to Equifax: Once Borrowell’s team has verified your rent payments, they are reported to Equifax Canada as an open tradeline. 

4. Watch your credit grow: As your rent payments are reported, they’ll positively influence key credit factors like payment history, credit mix and credit length. 

Borrowell Rent Advantage: An Overview

How It Works

Borrowell Rent Advantage reports your monthly rent payments (past and current) to Equifax to boost your credit score.

Eligibility

If you pay rent in Canada, you can sign up for Rent Advantage through the Borrowell website. You will need to confirm your rent payments using lease agreements, rental receipts or bank statements.

Benefits

• Build your credit with Equifax 

• Quick and easy setup

• No cancellation charges 

• No additional debt 

• No landlord involvement

How to Apply for Borrowell Rent Advantage

To apply for Rent Advantage, visit Borrowell’s website and sign up for Borrowell. You’ll be asked to enter your email address and create a password. Once you’ve become a Borrowell member, you can sign up for Rent Advantage and choose from the following options:

No hard credit check is required, and you don’t need to involve your landlord in the process.

Requirements

When you sign up for Rent Advantage, you’ll need to provide Borrowell with one or more of the following: 

• Lease agreement 

• Bank statements 

• Rental receipts

Borrowell will use these documents to confirm your rent payments before reporting them (including missed payments) to Equifax.

Benefits

There are several benefits to using Borrowell Rent Advantage, including: 

• Build your credit history and credit mix with Equifax

• No hard credit check when you apply

• Borrowell doesn’t charge cancellation fees

• You don’t need to involve your landlord

Drawbacks

• There is a monthly fee

• Missed rent payments could lower your credit score

Should I get Rent Advantage? 

You should consider Borrowell Rent Advantage if one or more of the following situations apply: 

• You are a Canadian resident and are renting your home

• You are new to Canada and are looking for ways to establish credit 

• You have little to no credit history 

• You want to improve your credit mix and other credit score factors 

Summary

Borrowell Rent Advantage is a flexible rent reporting program that can help build your credit score with Equifax, one of Canada’s two credit bureaus (the other is TransUnion). For a one-time payment and a convenient monthly fee, you can build your credit history by reporting past and future rent payments. Good credit history can lead to better credit offers and lower interest rates. If you rent your home and want to improve your credit, you should strongly consider signing up for Rent Advantage.

KOHO Rent Reporting Review

KOHO is a Canadian financial technology company that offers a wide range of financial management tools, including rent reporting. Its service differs from Borrowell’s in that it allows you to accumulate cash back rewards when you pay your rent through your KOHO account, but there is a catch, which we’ll explain a little later. Here’s a closer look at KOHO’s rent reporting feature. 

How Does KOHO Rent Reporting Work? 

Like Borrowell Rent Advantage, KOHO reports your rent payments to Equifax to boost your credit score over time. Here’s how the process works with KOHO:

1. Sign up for Rent Reporting with KOHO: You'll pay your rent to your landlord from your KOHO account.  

2. Credit bureau reporting: KOHO will forward your rent payment information to Equifax, one of Canada’s two credit bureaus. 

3. Track your credit history: Monitor your credit score to ensure it improves over time. 

You can potentially collect 0.25% cash back on your rent payments (up to $3,000 per month). However, to qualify, you must bundle tenant insurance with KOHO’s Everything service plan, which costs $22 per month or $14.75 if paid annually. 

According to KOHO, standard tenant insurance coverage starts at $22 monthly.

How to Apply for KOHO Rent Reporting

To get started with KOHO Rent Reporting, you must enrol in a paid service plan or subscribe to KOHO Credit Building. Paid plans (Extra and Everything) range from $18 to $22 monthly, and the Credit Building program costs up to $10 per month, depending on the plan type. 

Requirements

When you sign up for KOHO Rent Reporting, you’ll need to provide KOHO with your rental agreement. KOHO will ensure that the details in the agreement match the information you provided at sign-up. The review process can take up to five business days. 

There are several situations where you cannot use KOHO’s Rent Reporting, including if:

• You have roommates listed on the rental agreement 

• You pay your rent weekly or bi-weekly instead of monthly 

• You pay over $3,000 in rent via e-Transfer.

Benefits

• Build your credit with Equifax  

• No landlord involvement

• Potential to earn cash back on rent payments through KOHO

Drawbacks

• You have to set up your rent payments through KOHO

• More expensive than Borrowell Rent Advantage 

• The cash back rewards require you to pay up to $40 per month or more in plan fees and tenant insurance premiums

• Unlike Borrowell, KOHO Rent Reporting doesn’t report past rent payments

Should I get KOHO Rent Reporting? 

KOHO Rent Reporting may be worth considering if one or more of the following apply: 

• You are an existing KOHO client and are already paying for its services

• You have little to no credit history 

• You are looking to rebuild your credit 

• You want to build credit without adding to your debt 

Summary

KOHO Rent Reporting is a worthwhile service that helps tenants build their credit with Equifax. It is more costly than Borrowell Rent Advantage, but may appeal to existing KOHO customers who are already paying a monthly fee for credit building or one of its service plans. 

The Bottom Line

Borrowell and KOHO offer a valuable service to Canadian renters through their rent reporting, with both companies helping you build your credit with Equifax. 

You may want to consider KOHO Rent Reporting if you are willing to pay a higher cost to earn cash back rewards on rent payments, or if you are an existing KOHO customer who pays for a monthly service plan. On the other hand, Borrowell Rent Advantage is the better choice if you want to save money on monthly fees or report up to 24 months of past rent, a feature that KOHO doesn’t offer.