What is a Vantage Score?
The Vantage Score, technically spelled VantageScore, is a credit rating system developed by the top three credit agencies: Experian, Equifax, and TransUnion. It was created to directly compete with the Fair Isaac Corporation’s FICO® Score, which is currently the most widely used credit scoring system. Although the three agencies responsible for the new system tout is as superior to the existing FICO® system, many analysts are skeptical that it offers anything new. Fair Isaac has been operating various credit risk score systems since the 1950s, and it is both the oldest and most widely used credit analysis system. The credit report industry has exploded in the past decade, with individuals paying premium fees to have up-to-date access to their credit reports and scores. This is in part due to the much easier accessibility that now exists as a result of the Internet, and to a growing concern on the part of consumers to track their credit score. Through introducing the Vantage Score, the
A VantageScore is a new form of the traditional credit score, but streamlined and standardized across all three of the credit reporting bureaus: TransUnion, Equifax, and Experian. By pulling their resources together, the credit bureaus were able to agree upon one standard of calculations used to determine an individuals credit scores. Although the credit score is essentially the same in status and purchasing power, it may does look a little different – in fact, it will most likely be higher than the credit score you are used to seeing. Before VantageScore, the credit bureaus measured credit, or FICO, scores based on their own individual proprietary systems. Although the calculations were often close when determining credit scores, there have been instances where the scores were drastically different because of the different computing methods.
Vantage score is a new type of credit score which has been developed jointly by the three credit bureaus of US – Experian, Transunion and Equifax. It has been developed to remove the discrepancies in score from the three bureaus. However, as far as I know, it is not yet operational and the creditors still refer to your FICO score whenever they try to judge your creditworthiness.
There is a new, and not yet commonly used Vantage score or Vantage credit score. It was designed to make the scores more easy to understand. Vantage scores are figured the same way school grades are. If your score is 60 or less the score is an F, 61 to 70 is a D-below average, 71 to 80 is a C-average, 81 to 90 is a B– above average, and 91 to 100 is an A– perfect score. What’s A FICO Score? What Factors Influence Your FICO Score? The biggest reasons for credit scores to lower are:Bankruptcies,Collections, Charge offs, Late payments, Judgments, Liens, and too many inquiries. The most common credit score problem is owing more than 80% of your credit limit. What’s A FICO Score? Is it the same as a credit bureau score? Credit bureau scores are not the same because most creditors do not report to all 3 bureaus and some don’t report at all unless payment stops. Cell phone carriers, utilities, collection agencies, smaller banks, hospitals, and many other companies only report to credit bureau
