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 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%)
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.
That's how I got here a few years ago, Vinny - by happenstance. I found it to be informative right away, and decided to get involved. It's been a good ride and worth the time and effort to do so.
do the grantor choose between vantage score or fico score whe some trying to get credit
i wanted my Fico score and i got a vantage score. I tied to get my Fico score and it told me that there was not enough info to get it?? I am trying to get my a FHA loan to buy a house, but i want to know if i should even waste my time so i need my Fico score. Please help
Hi joe,
It will depend upon the lender/creditor whether or not he would consider your FICO score or your VANTAGE score.
To alisha,
You can visit the website "annualcreditreport.com" in order to get your FICO scores. You're entitled to receive a free credit report from them once in a year.
Thanks
It will depend upon the lender/creditor whether or not he would consider your FICO score or your VANTAGE score.
To alisha,
You can visit the website "annualcreditreport.com" in order to get your FICO scores. You're entitled to receive a free credit report from them once in a year.
Thanks
Has anyone ever heard of a New National Risk Model Score???
It ranges from 0 - 1000 and the LOWER the score, the better??
::very confused::
It ranges from 0 - 1000 and the LOWER the score, the better??
::very confused::
Robt, whoever has come up with cockamamie idea is clearly foolish. The major lenders in the world are not about to grab hold of something such as you've described.
Where did YOU learn of this new, ostensibly "national" system? That might serve us well in trying to answer your specific questions.
Where did YOU learn of this new, ostensibly "national" system? That might serve us well in trying to answer your specific questions.
If lenders would use vantagescore people that don't rely on credit to live would actually be able to buy a house or a car. Without have a line of credit of some form you will never get a fico score so you wont get approve for a mortgage that is 4-5 times less then your income. My fico is 582 but I have not missed a payment on any of my bills so my vantagescore is 733 a much more attractive score and an accurate depliction of my spending habits I hope that the us consumer is freed from the stronghold FICO has on us... FICO F-ing Indipendent Consumers Over.
Thanks for sharing your opinion with us!! :)
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