Written by: TJ Mahony
From apartments to mortgages, credit scores are already heavily utilized in real estate. Since owners/property managers are always trying to mitigate their risk against bad guests, perhaps it is time we leverage them in the vacation rental market as well.
While credit scores are a great indicator of financial risk, the truth is that credit has predictive power across many industries. For example, according to Insurance Information Institute, people with higher credit scores are much less likely to file an auto insurance claim and their claims and are lower when they do.
As demonstrated by their financial patterns and insurance data, people with good credit scores are generally considered more responsible suggesting they will be more responsible guests as well.
But how do you target or verify guests with good credit scores?
Target Advertising on Sites That Attract Consumers With Higher Credit Scores:
According to Credit Karma MSN and Google attract visitors with higher average credit scores compared to sites like AOL.
Ask Guests to Take a Screenshot of their Credit Karma Score
Second home owners are always concerned about ‘who’ is staying in their home, so why not deliver some piece of mind. If you are a detailed oriented owner or represent owners that are keenly interested in ‘who’ is staying in their homes, why not offer guests $10 off if they share a screenshot of their Credit Karma score?
CreditKarma.com is a relatively new service that offers completely free credit scores, no strings attached, in return for displaying targeted ads to its member base. Unlike other “free credit score” sites, CreditKarma is truly free, so as long as your prospective guests have two free minutes and want to save a few dollars, why not give them a small discount to pass on some piece of mind to yourself and/or your owners?