What is a Vantage Score?

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.

Although this could often result in a close calculation, some people's credit scores would vary greatly among the agencies because of their different methods of computing.

Now, the three companies have come together to create VantageScore, a uniform way to calculate your credit score. In addition to a new ratings system, your score is also assigned a letter grade. The old system based your score on a scale of 350-850. VantageScore works from 501-990, and scores are broken down by letter as follows: a score of 901-990 = A, 801-900 = B, 701-800 = C, 601-700 = D, 501-600 = F.

Consumer advocacy groups are concerned that this system may be too broad and doesn't account for different data received by each bureau. Credit card companies, lenders, and other institutions are not required to report to all three companies, so they could still end up with variations in score, despite all being on the same system.

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