Vantage Score is a new credit score that was developed jointly in March 2006 by the three national credit reporting agencies- Experian, Equifax, and TransUnion. This new credit scoring system has been developed to simplify and standardize scores across the three bureaus. Today, customers find that scores from each of the credit bureaus can vary widely. However, this new credit scoring system tries to reduce these variations, and help the lenders assess their customers in a more consistent way. Consumers can get their Vantage Score through any of the three major bureaus; all of these bureaus use the same scoring algorithm for calculating the Vantage Score.
What is the significance of Vantage Score?
The vantage score ranges from 501 to 990 and at the same time assigns a letter grade ranging from A to F to specify each range. Given below is a set of different score range of Vantage Score and their corresponding grades.
| Score Range | Grade | Comments | | 901-990 | A (Super Prime) | Applicants who fall in this range are considered by most creditors, issuers and lenders as the most creditworthy borrowers. Thus a borrower in this category will get best rates and terms on a loan from creditors. | | 801-900 | B (Prime Plus) | Borrowers in this category get "good" rates and better terms from creditors. Most of the lenders view the consumers falling into this category as creditworthy. | | 701-800 | C (Prime) | Usually lenders offer reasonable rates to the applicants within this score range. However, some lenders may wish to analyze in depth the credit history of consumers in this category in detail and may need additional documentation in order to extend favorable terms. | | 601-700 | D (Non Prime)
| Consumers in this category will have lot of trouble in getting loans by the creditors. However, a borrower belonging to the non prime range can get credit on less favorable terms from lenders. | | 501-600 | E (High Risk) | Many lenders generally prefer to turn down the application form submitted by the applicants belonging to the high risk range. Others may offer credit but will require deposit accounts to protect the loan. |
What affects your Vantage Score?
Vantage Score is calculated on the basis of six factors. Each factor plays a vital role in evaluating your Vantage Score; however these factors do not have equal weightage. Given below are the six factors with their approximate percentages:
- Payment history (32%) – Your payment history basically shows how regularly you’ve paid your debts.
- Utilization of available credit (23%) – The amount you are using from your available credit.
- Credit balances (15%) –The total amount of debt that owe to the lenders and creditors.
- Length of credit history and types of credit (15%) – It includes the duration of your credit history and the types of credit you have.
- Recently opened credit accounts (10%) – The number of credit inquiries you have made and the currently opened credit accounts.
- Available credit (7%) – The total amount of credit available with you.
How Vantage Score and FICO score differ from each other?
- A FICO score has a minimum of 300 and a maximum of 850 points whereas Vantage scores may range anywhere from 501 to 990 points. However, the primary difference between Vantage scores and FICO scores is that the vantage score assigns letter grades from A to F to specify different ranges of scores.
- The Vantage Score is based on six factors where as the FICO Score is evaluated on the basis of five factors:
| Factors affecting Vantage Score | Factors affecting FICO Score | - Payment History (32%)
- Utilization of available credit (23%)
- Credit balances (15%)
- Length of credit History (13%)
- Recently opened accounts (10%)
- Available credit (7%)
| - Payment History (35%)
- Outstanding debt (30%)
- Credit Mix (10%)
- Length of credit history (15%)
- New Credit (approximately 10%)
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Vantage score is an attempt to make the credit scoring method more credible and predictable for both the consumers and creditor. With the help of Vantage score consumers are more likely to get an accurate picture of their credit score. |
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anonymous..
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0.10 Dollars($)
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 Posted: Wed Jun 21, 2006 10:38 am Post subject: Vantage score difference.... |
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| i am a credit counselor and am always paying attention to my credit. it isn't perfect, but my experian score has never dropped below 725. i just checked my vantage score, and it was 686...putting me in the "D" range. this somehow does not seem equivalent. i was told that there MAY be "one or more inquiries affecting [my] score". their analysis of the score did not seem to be very helpful. thus far, i can safely say i am skeptical of the new system! |
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blue
Joined: 21 Oct 2005
Posts: 1135
Location: MARYLAND
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| Posted: Wed Jun 21, 2006 11:03 am Post subject: |
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Yeah that's worrying many of us. The new letter value assigned to our credit reports may lead for a lesser chance in getting acceptable rates on the loans.
This new letter system ranges in 100 points differences between each letter. ("A" = 901 - 990, 'F' = 501 - 600 etc.)
This difference is huge in judging an application for credit. Based on the previous system, if you had a score of 720 and above you would be eligible for great rate and even you could qualify for good rate with a score 718. Now there is little room for interpretation when you are approved or denied on a letter grade.
I don't know how the lenders will judge the system but the approval system should be changed with this new scoring system. Otherwise it may create problems for us. Let's see how it works as it is too early to comment more.
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Samantha
Moderator
Joined: 16 Sep 2005
Posts: 1441
Location: MASSACHUSETTS
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| Posted: Fri Jun 23, 2006 11:09 am Post subject: introduced to consumers |
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The three credit bureaus started offering the new Vantage scoring system to the lenders in March. According to them many lenders are experimenting but none has used it exclusively so far to make credit decisions.
This week Experian was the first to sell the Vantage Score to the consumers. Consumers can check this new score online by paying $5.95 but unless the lenders start using this score to make credit decisions it won't have much value.
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Know how to compare lenders with mortgage booklet |
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Glenn
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| Posted: Thu Nov 15, 2007 12:28 am Post subject: The Vantage score system is inept. Stay with the Fico |
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| My fico scores range about 640. My vantage scores range about 595. If a lender used my vantage score i would be an "f" If lenders used my Fico I am considered good credit. The vantage score system is tramatic for the consumer. This system does not work. Pray the creditors do not adapt this inept system so the three cra' can profit for nothing. |
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adonis
Joined: 22 Oct 2005
Posts: 1184
Location: ALASKA
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| Posted: Thu Nov 15, 2007 5:15 am Post subject: |
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Welcome Glenn
I don't think so. The best thing about vantage score is that it's uniform, whether you approach equifax or experian, there's just one score.
Otherwise you simply get consued when all CRAs give you different score and some lenders say "you can get the loan" and another says "you don't get it". That's terrible and then you can't decide.
Well, i can't really do so much of thinking when i have to choose a loan; better get one score which is approved by all and just go for the credit or loan.
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Procrastination is the enemy of your financial sucess |
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anonymous1
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| Posted: Fri Apr 04, 2008 9:35 am Post subject: "Fair"? Isaac? |
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I had a similar bad experience, when transunion switched to Vantage, my credit score went from 789 to 760, an almost 30 point drop, that moves me into the C range, basically moving me from a very good score FICO to an average vantage score.
Vantage looks more like a "Fair" Isaac marketing ploy to get lenders to buy into it by lowering scores all across the board and allowing lenders to justify charging higher interest at the expense of the borrowers. |
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jbarto65
Joined: 04 Nov 2007
Posts: 517
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| Posted: Sun Apr 06, 2008 5:36 am Post subject: |
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| Thank you for another great post, puts it in perspective, big reality check for me. |
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fireyone_02
Joined: 20 Mar 2008
Posts: 292
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| Posted: Mon Apr 07, 2008 11:53 am Post subject: |
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| I agree there jbarto. I love these kinds of posts. Really useful info. |
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jbarto65
Joined: 04 Nov 2007
Posts: 517
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| Posted: Sun Apr 13, 2008 6:00 pm Post subject: |
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| I like it when the more experienced posters put something out there that we can really use, this is a great example of that. |
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fireyone_02
Joined: 20 Mar 2008
Posts: 292
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| Posted: Thu Apr 17, 2008 4:37 am Post subject: |
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| You are right on that. When I came her I didn't know Jack from Jill. Been slowly learning. |
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jbarto65
Joined: 04 Nov 2007
Posts: 517
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| Posted: Sat Apr 19, 2008 8:04 pm Post subject: |
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| I just pulled this article the other day for a young person that needed some advice. I find so many things on this site so useful. thank you again for such a good article. |
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fireyone_02
Joined: 20 Mar 2008
Posts: 292
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| Posted: Sun Apr 20, 2008 6:11 pm Post subject: |
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| What kind of work do you do? Sounds like you work with people alot. |
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