Question:

What is Vantage score – the newest credit score system used by the 3 major US credit score bureaus?

Answer:

Equifax, Experian, and Trans Union have recently introduced the Vantage score system - system that uses data from all 3 major US credit score bureaus. It has been implemented with the purpose of providing better, more accurate and consistent credit scoring.

So far credit scoring was based on the Fair Isaac Corporation's FICO score, which generally has provided the model for all credit scoring to mortgage lenders and other institutions and businesses.

The Vantage score is supposed to ensure higher predictability, consistency, usability and fairness of credit scoring. It will create a score based on highly advanced mathematical and analytic techniques compared to traditional FICO score based on debt-to-income ratio, credit history, and other credit variables. However, the Vantage score offered by each of the 3 major US credit score bureaus will vary, as each credit score bureau has different data pools to extract credit scores.

FICO and Vantage Score Ranges

FICO ranges from 300 to 850, with most consumers scoring between 650 and 720.

Vantage score ranges from 501 to 990; those Americans scoring 900 and higher will get an A grade; those scoring 800 and higher get a B grade, and so forth. Customers with a 600 and lower get an F.

Vantage score is not expected to replace the FICO score; at least not yet. It is perhaps an attempt of the 3 cmajor redit bureaus to improve scoring and create their own proprietary scoring algorithm.

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