December 5th, 2008
Credit Scores Used in New Ways?
Everyone knows credit scores are critical to accessing credit whether it’s a home loan, credit card, or even a car loan. What people don’t realize is credit scores have become incorporated into many other aspects of consumer’s everyday life. Insurance companies use them as a component of their pricing engines assuming high credit scores are predictors of less risk. Employers use them to screen employees and landlords demand a peak of your credit file before they’ll make a decision to rent that perfect apartment to you. It’s not surprising that credit scores are now popping their head up in vacation rentals as well.
Vacation rentals are an emerging lodging alternative to hotels which provide families more space, superior amenities and often more affordable nightly rates. Most second home owners occupy their vacation homes less than one month of each year, so to help pay the mortgage on the investment property owners will rent their homes to other vacationing families. It’s a great way for second home owners to receive additional income, but there is one major sticking point…. You have to be comfortable with strangers staying in your home.
Opening your home to stranger can be a little daunting, so why not ask prospective guests for additional information to feel more comfortable. Vacation rental sites like Flipkey.com are introducing free credit score sites to vacation rental owners and managers and suggesting they provide small discounts or incentives to renters who are willing to share a simple screenshot of their recent credit score with the rental owners or managers. A simple sneak peak of the credit score can provide an additional layer of comfort when you are handing the keys to a home over to another family.
Having a high credit score does not guarantee the perfect guest, any more than it guarantees an individual will not default on a loan, but it certainly can help reduce the chances of a disrespectful guest and provide some peace of mind.
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