Why was the Vantage Score Introduced?

In March of 2006, the three major credit reporting bureaus (Experian, TransUnion, and Equifax) collaborated to standardize the credit score determination process. Thus, VantageScore was born.

In the past, the three agencies had used internal proprietary systems for calculating credit scores. This means that even with the same exact data, all three scores could be significantly different. Lenders typically would assign your credit score based on the middle score, not the average. This had been problematic for people in the past, so the agencies sought to make this system more uniform.

Hence, VantageScore was born. Under this system, all the bureaus score your credit based on the same methods. And although the criteria may vary (not all companies report to all three bureaus), the way in which they calculate your score will be all the same, so a more standardized score is achieved.

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