Stars And Stripes Blog

Credit Scores - We Check

Shari Oliver-Watkins - Monday, August 1, 2022

When applying for an available rental, Stars & Stripes Homes, Inc. checks your Credit Score via Experian. That's what our homeowners expect and that's what we do. Questions?  Ask the Property Manager who is managing the home you are interested in.  Below is a little more info on the credit score.

SHARI OLIVER-WATKINS, Owner, Managing Broker, Senior Realtor, CRS, GRI, Alumni, Hampton University, VA
Master Sergeant, US Air Force (Ret.) Talk/Text 720.317.5121 Email Shari

Experian uses VantageScore 3.0 which is a credit score developed by the three national credit reporting companies (CRCs) — Experian, TransUnion, and Equifax. The VantageScore uses only one model with one set of scoring calculations—this results in scores that are more uniform across all three CRCs.The VantageScore 3.0 model is used as a risk score, which is a key component that we use to determine creditworthiness.

Like the system or not, your credit score is a 3-digit code or score derived from an algorithm that can play a significant role in your ability to obtain credit (auto loans, mortgages, credit cards, etc.) and determine the interest rate you will pay for credit, or perhaps influence an owner's decision to rent their home to you. 

According to Experian, the average credit score in the United States is approximately 710.

Research shows that renters are now less likely to be evicted or skip out on their leases thanks to improving economic conditions in the U.S., according to a new report from TransUnion. This particular report shows that renter risk decreased by 2% year-over-year as 34% of renters now have renter scores of 720 or higher. The score is based on a TransUnion proprietary scoring method.

According to TransUnion, landlords can thank a strong economy and low unemployment levels for the rise in renter dependability.

“Strong local economies coupled with low unemployment rates are likely driving the improvement in the average ResidentScore," Doherty said in a statement. “This is positive news for renters as fewer applicants are likely to be declined or be subject to higher deposits. For property management companies, this is a major plus as the likelihood of evictions, which can cost thousands of dollars, drops precipitously when renters have a higher ResidentScore,” he added. To create this report, TransUnion examined over 500,000 move-ins and payment performance over a 15-month period as reported by property managers. Over that 15-month period, only 1.1% of the residents with renter scores of 720 or higher were evicted or skipped out on their leases. That percentage increases drastically as you move down in quality of credit. A whopping 41.9% of residents with credit scores below 540 were evicted or skipped their leases. On average, renters who skip out on their leases leave with $4,215 in expenses that homeowners may eat.

Rental credit performance as of March 2018 for renters that started leases in 2016

When property management companies are steady on their accept or decline criteria, they are declining fewer applicants and the population they are accepting is expected to perform better.



Here at Stars & Stripes Homes, Inc, we check your FICO score when you apply for an available home for rent.  Again,  it's what our homeowners expect and that's what we do.



 

Get In Touch With Us

Stars & Stripes Homes, Inc.
13741 E. Rice Place #105, Aurora, Colorado 80015
Located In Harbor Pointe Near The Intersection Of
Parker Road and E. Quincy Avenue

Shari Oliver-Watkins
Managing Broker, Owner
Licensed Realtor, Property Manager
Direct Talk/Text: 720.317.5121
Office: 303.326.0550
Shari@StarsAndStripesHomes.com

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