Can Landlords Deny Housing for Bad Credit in Alberta?

Searching for rental housing in Alberta with a low credit score can be stressful. Many tenants worry about being denied a home because of their financial history. Understanding your rights is crucial when it comes to credit checks, application screening, and fair treatment under Alberta law. This article will cover what landlords can and cannot do regarding bad credit, relevant legal protections, where to get help, and practical steps to move forward with confidence.

Credit Checks: What Alberta Landlords Are Allowed to Request

In Alberta, it is common for landlords to ask for a tenant’s credit report as part of the rental application process. A credit check shows your history of repaying debt and managing bills, which some landlords use to gauge rental risk.

• Landlords must always get your written consent before performing a credit check.
• Landlords are allowed to consider your credit score—as well as references and income—when deciding to accept or decline your application.
• No law prevents landlords from denying housing because of poor credit, as long as they are not discriminating under human rights law.

Can You Be Denied Housing for Bad Credit?

Yes, landlords can refuse your application based on credit history in Alberta. However, there are important exceptions and protections:

• Discrimination prohibited: Landlords cannot use bad credit as an excuse to discriminate based on race, religious beliefs, gender, gender identity, family status, disability, or other protected grounds under the Alberta Human Rights Act.
• Consistent criteria: Rental policies must be applied consistently to all applicants. If a landlord uses credit checks, it should apply to everyone—otherwise, it could be considered discriminatory.
• If your bad credit is due to issues connected to a disability (such as periods of unemployment due to illness), you may have a right to accommodation under human rights law.

Landlords may also ask for references, proof of income, or a guarantor. To understand more about what landlords can request when you move in, visit Understanding Rental Deposits: What Tenants Need to Know.

What If I Feel I Was Unfairly Denied?

If you suspect that your application was rejected due to discrimination—for example, your bad credit was used as cover for refusing to rent to you because of a protected characteristic—you have the right to file a human rights complaint.

• Contact the Alberta Human Rights Commission to start the process.
• Keep track of all correspondence with the landlord and gather any evidence that supports your claim.

If your application was rejected for general credit reasons, consider talking directly to the landlord, providing a co-signer, or showing additional financial documentation to strengthen your case. For guidance on what to do after signing a lease, see What Tenants Need to Know After Signing the Rental Agreement.

Which Law Protects Tenants in Alberta?

Tenant and landlord rights for rental housing in Alberta are governed by the Residential Tenancies Act (Alberta) and the Alberta Human Rights Act.^1,2

Rental disputes are typically handled by the Residential Tenancy Dispute Resolution Service (RTDRS) or the Alberta courts for more complex matters.

Are There Official Forms for Rental Disputes?

While there isn’t a specific form just for credit-related denials, tenants who feel they have been denied housing due to discrimination can use the:

• Complaint Form (Alberta Human Rights Commission): File this form if you believe your housing application was rejected for a discriminatory reason.
  Use it to provide details about the incident and request an investigation.
  Download the Alberta Human Rights Complaint Form.
  Example: A tenant with a disability feels a landlord cited bad credit as a pretext for refusing to rent to them after learning of their disability. The tenant files the Complaint Form with supporting evidence.

For other disputes (like improper deposit handling or repairs), the RTDRS Application Form is used to start a claim with the Residential Tenancy Dispute Resolution Service. View RTDRS application forms here.

Quick Summary

• Bad credit alone is a valid reason for a landlord to deny your application in Alberta, as long as it is not a cover for discrimination.
• Human rights law protects you from unfair denial based on protected characteristics (race, religion, disability, etc.).
• There are resources to help if you believe you were treated unfairly.

For an overview of tenant and landlord rules specific to this province, see Tenant Rights and Landlord Rights in Alberta.

You can also Find rental homes across Canada on Houseme—an all-in-one platform dedicated to making your search easier.

Frequently Asked Questions About Credit and Rental Applications in Alberta

1. Can a landlord deny my rental application because of bad credit?
   Yes, landlords in Alberta are allowed to use credit checks as part of their selection process. There are no explicit laws preventing refusal for bad credit if the process is applied equally to all applicants and is not discriminatory.
2. Do landlords have to tell me why I was rejected?
   No law requires landlords to disclose the reason for rejection. However, you can respectfully ask for feedback or clarification.
3. Can credit checks be done without my permission?
   No. Landlords are required by Alberta privacy law to obtain your written consent before conducting a credit check.
4. What should I do if I feel discriminated against in the rental process?
   You can file a complaint with the Alberta Human Rights Commission if you believe you were denied housing because of a protected characteristic, rather than legitimate rental concerns.
5. Can I strengthen my application with poor credit?
   Yes. Consider providing a co-signer, offering a larger deposit (within legal limits), or supplying positive references or proof of regular income to support your application.

Need Help? Resources for Tenants

• Residential Tenancy Dispute Resolution Service (RTDRS): Handles rental disputes, including some application denials
• Government of Alberta – Information for Tenants: Rights and responsibilities for renters
• Alberta Human Rights Commission: Guidance, complaint forms, and advice if you suspect discrimination
• Tenant advocacy: Contact local legal aid or the Edmonton and Calgary Legal Guidance programs for support if needed

1. Residential Tenancies Act (Alberta)
2. Alberta Human Rights Act