Equifax Canada exploring use of payday loan data in credit score calculation

Equifax Canada says it's exploring how using payday loan data could affect people's credit scores.

The agency says including data sources that aren't traditionally used to calculate credit scores could help paint a more complete picture of consumers' credit health. 

Equifax says this could improve credit scores for consumers with "responsive repayment of payday loans," potentially leading to better loan terms and interest rates for those customers as they seek to rebuild their credit. 

Last month, Equifax said it was exploring the use of rental data in calculating credit scores, adding that including "alternative data" could establish or enhance the credit scores for millions of Canadians.