(Toronto) Equifax Canada says it is studying how the use of payday loan data could affect people’s credit scores.
The agency believes that including data sources not traditionally used to calculate credit scores could help paint a more complete picture of consumers’ credit health.
Equifax says this could improve credit scores through “responsive payday loan repayment,” which could lead to better loan terms and interest rates for those customers looking to rebuild their credit.
Last month, Equifax said it was studying the use of rental data in calculating credit scores, adding that the inclusion of “alternative data” could fix or improve the credit scores of millions of Canadians.
The federal government, through its budget, called on banks, fintechs and credit reporting agencies to prioritize the launch of tools that would allow tenants to choose to report their rent payment history.
The government says it could help more renters become homeowners by improving their credit score if they have a history of paying rent on time.