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Vantage Score: A unified scoring model

Posted on: 30th May, 2006 12:38 pm
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 RangeGradeComments
901-990A (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.
801-900B (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.
701-800C (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.
601-700D (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.
501-600E (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?

  1. 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.

  2. The Vantage Score is based on six factors where as the FICO Score is evaluated on the basis of five factors:
    Factors affecting Vantage ScoreFactors 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%)

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.
Hi Crazygolfer,

Paying off the debts to become debt free is really a good idea. It will not hurt your credit rather it will give a positive boost to your credit score. But I guess it will take some time to improve your credit score. You will have to patient and wait for a few months. There are various steps which you can take in order to improve your credit. Check out the following link to know more about improving your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Thanks,

Jerry
Posted on: 14th Feb, 2009 01:42 am
Just obtained my Vantage score for the 1st time today because I pulled my credit report and noticed that some credit card companies either closed my accounts or reduced my credit availability...without my knowledge. I still have WAY more available credit than I could, or would, ever use. I always had a pretty good FICO score, but this score was even better and I'm not sure why...whether it's because of the new scoring system or the reduced credit availability.

However, 98% of my debt is in my mortgage, never late on any payments, long payment history, satisfied several house loans in full, only have 1/50 of my available revolving credit used - this month's CC balance (always pay CC balances in full each month), no car loans, etc.

Vantage score: 945 out of 990 - A - Super Prime - better than 96.96% of consumers

Considering the economy, I'm happy. But maybe all these defaults are making me look better. I'm not happy about that.
Posted on: 07th Mar, 2009 04:08 pm
My score is very low, due to student loans. I had my accounts in deferrment due to me being in school. But their system never added me correctly, and they're telling me now that they can not fix the problem because their system only response to the creditor and not a live person. What do I do?
Posted on: 15th Sep, 2009 06:47 am
Hi Antonio!

Welcome to forums!

In my opinion, you should contact an attorney and let him deal with the credit bureau. He will negotiate both with your creditor as well as the credit bureau.

Sussane
Posted on: 15th Sep, 2009 10:55 pm
my husband has a truecredit account that now posts Vantage scores...we are trying to buy a home and have shown my mortgage person these scores compared to his fico's, which of course are significantly different...he has asked if these Vantage scores can be used for mortgage purposes...since these scores are so new and still being batted around by lenders he was unaware of how they work
Posted on: 21st Jan, 2010 09:42 am
more than likely ALL lenders will use FICO. I highly recommend you pull your own FICO score before shopping with lenders.

There are different FICO models and almost all lenders use FICO instead of Vantage.
Posted on: 22nd Jan, 2010 07:42 pm
Jerry, wanna bet?
Paying your credit cards off in full LOWERS your credit score. Scores are a unregulated b.s. system manipulated by LENDERS. They are not an honest assessment of your ability to pay back a new loan.
Yes, your scores rise as you decrease credit card debt, but pay them off in full and your scores will actually drop. Scoring systems like a "healthy mix of credit". A high score can be achieved with no credit card debt, but it takes much longer.
And have you seen the new factors hurting your score? Now having only a small mortgage is a negative. That's clear proof the lenders are rewarding what they want to see, and not so much about determining who can pay back a new loan. It's not as much credit worthiness, it's how much of a sucker you are. The lenders want to know that they will make a big profit off of you.
If you pay off ALL debt, your scores drop to those of someone who has filed bankruptcy! You then have to seek out manual underwriting to get a loan and most likely will NOT get the best terms out there.
Posted on: 28th Feb, 2010 12:08 am
In my transunion my credit score is 749 and in equifax it is 569 why?
This does not sound right I am in a need of a car immediately and I am afraid to go and purchase one with these scores....
Posted on: 10th Apr, 2010 07:11 pm
Welcome Theresa,

You need to get hold of a credit report from Equifax and check out what kind of negative items are listed on it. You can start negotiating with the credit bureau in order to get them deleted from your report.
Posted on: 12th Apr, 2010 12:01 am
tim, lenders play no role in credit scoring. where did you get that foolishness? and paying in full is a boon to a good score - i'm a living witness to that. what jerry was advocating was not "closing" the credit card accounts, but paying the balances off. having a lot of available credit with minimal debt is a very good thing. i think you may have misread that.

i think you just wanted to file a complaint of some sort - you managed that.
Posted on: 12th Apr, 2010 10:05 am
Who uses the vantage scoring system for used autos in new york? Please help! I can't seem to find a lending instituion
Posted on: 21st Apr, 2010 11:10 am
Vantage isn't yet recognized by the overwhelming majority of lenders. In fact, my guess is that you'll find it almost impossible to find someone using it.
Posted on: 21st Apr, 2010 11:50 am
I can no longer get access to my FICO scores. I have true credit monitoring and have three in one. My Vantage scores are 830, 818, and 831. Are these good Vantage scores? My FICO scores were around 720 on all three. Thanks.
Posted on: 04th May, 2010 06:28 pm
Vinny, since Vantage has a much different scale, it would appear that you've got about a "B" average (A-B-C-D...like in school). With a 720 FICO score, you're in that category, I'd say, as well.

Good? Sure, but it's still worth aiming higher.
Posted on: 05th May, 2010 10:13 am
Thanks George. I have two late payments that are just about to drop off after 7 years. They should be gone in about 30 days. That should bring my scores up. I am working hard on paying down what little debt I have. That will also help. Thanks again for your help. I stumbled upon this website on a search and I must say that I am extremely impressed.
Posted on: 05th May, 2010 05:28 pm
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