Home | List of Articles | Submit an Article | Contact Us

New FICO Scores A Boon To Landlords

Fair Isaac Corporation is the creator of the FICO
credit score that is used today by most lenders to
evaluate consumer credit risk. FICO scores range
from a poor credit low of 500 to a best credit rating
of 850.

The higher the FICO score the lower the interest rates
offered by most lenders. For example here is a look
at how FICO scores might affect a $150,000 30-year,
fixed rate loan:

Score Interest Payment
720-850 5.64% $865
700-719 5.77% $877
675-699 6.30% $929
620-674 7.45% $1,044
560-619 8.53% $1,157
500-559 9.29% $1,238

Rates change frequently, but you can check the daily
average at myfico.com.

Fair Isaac has extended its FICO score to cover an
expanded population base. This expanded FICO coverage
will tap into non-traditional sources of consumer data
to assess the credit risk of adults who have minimal
or no credit history on file - such as recent
immigrants, people with low incomes, recent widows
and divorcees, and young people.

The company has tapped into non conventional ways of
establishing credit scores. People pay rent, they
pay catalog companies when they order something,
they pay back payday loans -- there are various ways
people show financial responsibility and Fair Isaac
will now be gathering that information to help
determine FICO scores.

An estimated 160 million Americans have documented
credit histories adequate for calculating classic
FICO credit scores. An estimated 50 million
consumers do not. Now that will change.

For real estate investors and landlords this means
that we should be able to find a few more credit
worthy buyers and renters than in the past.

http://digbig.com/4cmxd

About the Author

About The Author:
Mark Walters is an investor and author. You can find his
published material at http://www.CashFlowInstitute.com
http://cfiblog.blogspot.com/

Related Articles:

Landlords Dance The FICO Fandango - Fair Isaac Corporation is the creator of the FICO credit score that is used today by most lenders to evaluate consumer credit risk. FICO scores range from a poor credit low of 500 to a best credit rating of 850. The higher the FICO score the lower the interest rates offered by most lenders. For example here is a look at how FICO scores mig ...

Hey Landlord! Is Your Lease Legal? - The longer you are a landlord the more you strive to create the perfect lease/rental agreement. Landlords learn in the school of hard-knocks that some tenants are certified trouble makers and we try our best to protect ourselves with a carefully structured restrictive lease. That's just good business.... but be careful you don't include any ...

Smart Landlords Use Very Smart Leases - The longer you are a landlord the more you strive to create the perfect lease/rental agreement. Landlords learn in the school of hard-knocks that some tenants are certified trouble makers and we try our best to protect ourselves with a carefully structured restrictive lease. That's just good business.... but be careful you don't include any ...

CAN MY LANDLORD EVICT ME FOR SMOKING? - QUESTION: I'm subletting an apartment. My landlord wants to evict me for smoking -- and for allowing my guests to smoke, too. The tenant whom I rent from didn't mention any rules about smoking, nor were there any in the tenant's lease nor in my month-to-month sublease. I pay rent on time. What are my rights? ANSWER: Given the n ...

Landlording And Other Aggravations - Here's the gripping story... You are the landlord of a small apartment building that you are offering for sale. You find a buyer and a sale is arranged. The tenants learn of the sale and ask if they will be forced to move. How do you answer? You explain that it depends upon the lease agreement. If the tenant signed a lease they ...

A Landlord's gripping story... - You are the landlord of a small apartment building that you are offering for sale. You find a buyer and a sale is arranged. The tenants learn of the sale and ask if they will be forced to move. How do you answer? You explain that it depends upon the lease agreement. If the tenant signed a lease they have the right to remain in the uni ...

For a Complete list of Articles with summaries Click Here