The New VantageScore!
In recent weeks, the three national credit bureaus made the announcement that they are joining forces to create a new credit score called VantageScore. As of right now, every credit bureau, that is Transunion, Equifax and Experian, have their own credit scoring system, using different formulas.
This is why when you request your credit score from any of them, the scores sometimes are not equal. You might get a score of 720 from Transunion, while you might get a 702 score from Experian, and a 695 score from Equifax.
According to Experian, “It’s the most sophisticated, highly predictive scoring model that’s available in the marketplace”.
According to representatives from Transunion, Equifax and Experian, the new VantageScore will have a scale from a low of 501 to a high of 990. If your credit score in Equifax is 728, it will also be 728 in Experian and Transunion since it is based on the same information.
Fair Isaac Corporation has been selling their FICO score for more than three years now via MYFICO.COM website. FICO scores are calculated different because credit bureaus and lenders use different formulas. Also the data might be different, such as when you have a car loan and the creditor does not report information to all the three credit bureaus.
The VantageScore will be based on a grading scale from A to F similar to a what is used in elementary school:
If the score is based on the same information, all three credit scores will be the same from each Bureau and disparities between the scores will virtually disappear.
According to the VantageScore website, the new credit score will be:
The VantageScore will not be available until the end of this year, 2006.
Gerardo A is the author of this article!.You can check his website at http://www.goodcredit4life.com where you’ll find useful info about credit reports,credit scores and credit restoration.
