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

The agency says including data sources that aren鈥檛 traditionally used to calculate credit scores could help paint a more complete picture of consumers鈥� credit health.

Equifax says this could improve credit scores for consumers with 鈥渞esponsive repayment of payday loans,鈥� 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 鈥渁lternative data鈥� could establish or enhance the credit scores for millions of Canadians.

The federal budget called on banks, fintechs and credit bureaus to prioritize launching tools that would allow renters to opt in to reporting their rent payment history.

The government says this could help more renters become homeowners by strengthening their credit scores if they have a history of on-time rental payments.

The Canadian Press