Vantage score
: the Other score model

Vantage score is one of the many types of credit score models available for creditors to use to evaluate the credit risk of their customers.

In other words the credit score also called the credit risk score is the instrument creditors and others use to assess the risk involved in lending money to you.


Your credit score will also determine how much that lender will be able to lend to you, how long you will have to repay and what rate you will be paying at.

AND

In some instances whether collateral will be needed or a statement of income or any other requirements necessary to satisfy the lenders confidence.



Vantage score is different as most businesses use score models developed by Fair Issac Corp. or FICO.

It was developed by the three major credit reporting agencies in direct competition with the Fico products.


Made available in March 2006 and marketed as being more generic (some of the FICO models are developed for certain types of markets) this "other" model uses the info from all three credit bureaus and asserts it limits variables that way.

There is only one Vantage score while their are many types of FICO scores. Each credit reporting agency can, and usually do use a different product to produce your score.

Yet keep in mind each bureau does have varying info. Therefore the same vantage score can be different at each bureau.



Their website claims that those with thin files (short credit history) are afforded access to more credit at fair terms.

Other claims are...







    A prediction of the likelihood of serious delinquencies
    (past 90 days is serious)

    Score range is from 501 to 990

    Based on a 24 month review of your credit file

    Uses up to 4 score factor codes and a fifth FACTA reason code

    Can be accessed from all three major bureaus (Transunion is offering it heartily)

    Does not use authorized user trade lines to access risk
    (authorized users are usually family members added to an account that are not responsible for payment of a card or loan but can add substance to the primary card holders history).

    Also claims it can predict on those with insufficient information on their credit files.




    Usually to calculate a credit score you must have at least one account open for a minimum of six months with recent activity.


    To qualify for a big loan you usually need three to four accounts that have been open for 12 months and are active.



    Along with the scoring range this model also uses a letter system much like that of a school report card.

    A= 901 - 990

    B= 801 - 900

    c= 701 - 800

    D= 601 - 700

    F= 501 - 600


    The calculation is very much like FICO


      32% = Payment history
      23% = Credit Utilization or credit/debt ratio
      15% = Credit Balances
      13% = Length of credit history
      10% = Recent credit (hard inquiries)
      7% = Available credit


    This being new and not a FICO score it may not be adopted very quickly by lenders.
    It seems to be in competition with the Expansion Score as it is targeting the thin file customers which seems to be the "new" customer base which could very well end up being a very desirable market in the aftermath of this economy.

    The scoring range could confuse matters more so for the average consumer that doesn't educate themselves about credit matters.

    An article at Bankrate suggested multiplying the vantage score by .86 to find the comparable FICO score.


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