How are the Vantage
Credit Score and FICO Credit Score different?
The
VantageScore system differs from the FICO scoring system in a few
different ways.
The old
FICO scoring system, which was based on a scale of 350-850, caused
issues because each
credit reporting company had a different way of determining this score. The new system uniformly
determines what value is placed on every
factor of
your credit, in an attempt to eliminate the divergence between the
three scores.
The scales
also are different. VantageScore rates from 301-990 and scores are
broken down by letter in addition.
Although
the differences between the two systems are not overly
complicated, they are significant enough that the consumer and
lending market may reject the new system in time. The market will
tell in the coming months, but for now, the old FICO system is
still very much in popular use. |
