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Vantage Score
Online Frequently Asked Questions:
What is a VantageScore?
You
may have heard about a new term a few months ago regarding your
credit score
called VantageScore. What exactly is VantageScore? A
VantageScore is an alternative form of your customary credit
score, which has been simplified many ways. Your credit score
will seem different (It will most likely by higher in number) in
appearance, but in essence it will mean the same to you in terms
of status and purchasing power.
Why was the VantageScore introduced?
In March of 2006, VantageScore was introduced as the latest
credit scoring system in the financial market. Why was this
done? The
three major credit reporting bureaus, Experian, Equifax, and
TransUnion, uniformly felt that it was essential to simplify
their scoring methods to eliminate the difference between the
three scores.
Why is a VantageScore
important?
The VantageScore is a direct result of the joint effort between
the
three major credit reporting agencies: Experian, Equifax,
and TransUnion. In March of 2006, these three agencies revealed
a new, joint credit scoring system that they believe will
eventually replace the conventional FICO system. Prior to
VantageScore, each credit bureau used their own methods for
formulating credit scores, which frequently caused significant
differences between the three agencies.
How are VantageScores and FICO
Scores different?
There has been some recent buzz in the credit market with the
news of a new credit scoring system called VantageScore. But
wait! Didn’t you just figured out what your
FICO score meant, and now you have to learn a new one? For a
lot of people, credit ratings are difficult enough to
understand, why do we need another credit scoring system?
How is the new VantageScore calculated?
Do
you know your credit score? For a lot of people, concerns with
identity theft and acquiring lending opportunities have made
them much more aware of this number. Under the FICO credit
scoring system, the three major
credit reporting bureaus--Experian, TransUnion, and
Equifax--all calculate a number from 300-850 and assign it to
you as your credit score. |
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