Technology and data mining are changing the way credit scoring is being factored and that’s good news for landlords who have had to screen prospective tenants utilizing their FICO scores.
“Our FICO score is made up by the amount of available credit we have, the utilization of that credit, in other words have we gone out on a limb and used every last penny of credit we can get or are we only using a moderate amount of that credit,” said real estate expert Jason Hartman. “Of course, there’s also payment history,” he added.
Hartman discusses the credit scoring on his Creating Wealth podcast, episode 821.
The FICO scoring model is fairly simplistic, Hartman said, however, he noted that there are several types of scoring models such as FICO 4 and FICO 8 as well as the three main credit reporting bureaus. He noted that the scores can vary from bureau to bureau, leaving landlords to assess the risk with potentially incomplete data.
“Your score at Experian could be different than your Transunion score or different than your Equifax score, so this is complicated and not very good at assessing risk for a landlord who wants to rent to a tenant,” Hartman said.
The better, more in depth scoring will allow rental property investors to be more successful as tenant screening will be less of a guessing game.
The Creating Wealth podcast with Jason Hartman has a global audience in more than 164 countries and is ranked highly in the Investing section of iTunes. New episodes release every week.
The podcast is a part of The Hartman Media Network, which is becoming a required stop for politicians, the media, and economic, finance, health and travel experts. The Hartman Media Network has been host to a wide variety of prominent names from all sides of the spectrum, including 2016 Republican candidate Dr. Ben Carson, former Senator Todd Akin, and Rich Dad author Robert Kiyosaki. Other guests have included Presidential nominee Pat Buchanan, Weather Underground leader Bill Ayers, and FOX host John Stossel.
Hartman Media podcasts can be accessed at www.HartmanMedia.com
About Jason Hartman
Jason Hartman is the founder of The American Monetary Association, The Hartman Media Company, Platinum Properties Investor Network and The Jason Hartman Foundation, a resource for young adults to develop financial literacy.
In a successful investing career spanning over two decades, Hartman has been a successful entrepreneur, speaker, author and media personality. His Complete Solution for Real Estate Investors has helped thousands of people achieve their dream of financial freedom with income property investments.
Jason is also:
An innovator in teaching personal financial literacy and empowerment
Creator of the 10 Commandments of Successful Investing, a set of no-nonsense guidelines for achieving financial success
Founder of JasonHartman.com, a comprehensive resource for creating sustainable wealth through income property investments
Self-made multi-millionaire with income properties in several states
To learn more at www.JasonHartman.com
For media inquiries contact PR@HartmanMediaCompany.com or 315-529-1235
Company Name: JasonHartman.com
Contact Person: Carol Thompson, media relations
Country: United States