Understanding Credit: FICO scores range from 300 to 850. The higher the score, the better the credit grade.
The three main credit bureaus or credit reporting agencies( CRAs) include Experian, TransUnion, and Equifax. The credit scores are derived from the following factors:
• Payment history— 35 %
• Amount owed— 30 %
• Length of credit history— 15 %
• New credit— 10 %
• Types of credit used— 10 %
Newer Credit Score Models: The average American has a FICO credit score near 690 to 700, according to various reports. In October 2022, the Federal Housing Finance Agency( FHFA) announced the approval of a new credit score rating system named FICO 10T and VantageScore 4.0 for use by Fannie Mae and Freddie Mac. FICO 10T and VantageScore 4.0 will consider payment histories from rent, utilities, and telecommunication bills. Yet, a rental payment history can be very bad for tenants on Covid moratoriums with years of no payments.
I’ ve written real estate courses in most states for the two largest real estate publishers as well as for the oldest and bestknown real estate school in California. Many of the courses that I create include details about how to build, rebuild, or boost overall credit scores.
Oftentimes, I am helping my clients increase their FICO scores during our mortgage preapproval process. If and when successful with boosting my clients’ credit scores by 20 to 200 + FICO points within a relatively short period of time, the client may then qualify for a much lower rate while saving tens of thousands of dollars’ worth of interest payments on their mortgage.
California’ s Rising Rents
The median rent for all property types. in California reached $ 2,800 in October 2024, as per Zillow. California rents were $ 795 higher than the national median. The more encouraging news for California renters is that rents only increased by $ 5 per month as compared to back in December 2023.
Top 10 Most Expensive Rental Markets in California
For those people who are struggling making rent payments here in California and elsewhere, it’ s quite understandable why as we review the Top 10 priciest average rental regions below:
1. San Diego: $ 3,175 / mo. 2. San Francisco: $ 3,168 / mo. 3. Los Angeles: $ 2,893 / mo. 4. San Jose: $ 2,570 / mo. 5. Santa Monica: $ 2,500 / mo. 6. Oakland: $ 2,450 / mo. 7. Irvine: $ 2,400 / mo. 8. Santa Ana: $ 2,370 / mo. 9. Berkeley: $ 2,350 / mo. 10. Fremont: $ 2,300 / mo.
Top 10 Most Affordable Rental Markets in California
Conversely, let’ s take a look at the 10 most affordable rental markets in California as per Zillow:
1. Redding: $ 1,142 / mo. 2. Turlock: $ 1,351 / mo. 3. Lodi: $ 1,358 / mo. 4. Bakersfield: $ 1,367 / mo. 5. Yuba City: $ 1,375 / mo. 6. Merced: $ 1,481 / mo. 7. Modesto: $ 1,546 / mo. 8. Fresno: $ 1,430 / mo. 9. Clovis: $ 1,627
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10. Citrus Heights: $ 1,755 / mo.
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