The Vantage credit score has been developed by the three major credit bureaus

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What every consumer needs to know about the Vantage Credit Score
3 years ago
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While most of us understand the importance of a good credit score, many people are unaware that there is a new credit scoring system in town. The Vantage credit score has been developed through the cooperation of the three major credit reporting agencies, namely Experian, Equifax and TransUnion. The partners involved in its creation hope that the Vantage credit score can successfully compete with the famous FICO score.

What is the Vantage Score?
While the Vantage score is similar to the FICO score in some regards, there are some key differences as well. Among the differences are a bigger score range and the inclusion of a letter grade as well as a raw number.

What is the Range for the Vantage Credit Score?
Vantage scores run from 510 up to 990, with each 100 point range being assigned a grade letter. These grade letters range from ?A??to ?F?? with scores from 900 through 990 assigned an ?A??letter score.

In comparison, FICO scores run from 300 up to a high of 850, with no corresponding letter grade.

What Factors Determine the Vantage Score?
Like the FICO score, the Vantage credit score is proprietary, and the exact criteria are not available to the public. However, industry experts have found that the following factors affect the final Vantage score:

- Payment history ??32% of score
- The amount of available credit being used ??23% of score
- Credit balances ??15%
- Types of credit available and age of accounts ??13% of score
- New accounts and recent credit inquiries ??10% of score
- Total credit available ??7% of score

How Does Each Credit Bureau Calculate the Vantage Score?
The Vantage score is determined by each credit agency individually, using the information each bureau has in its files. Although all three credit bureaus will generally have the same information, there can be some differences, and this can affect the final score. For instance, one credit bureau may have information about an account, while another may not. The accuracy of the resulting Vantage scores can also be affected by inaccurate or outdated information, providing yet another reason for consumers to review all three of their credit reports on a regular basis.

While the FICO score is still the king of the hill for the time being, the newly created Vantage credit scoring system represents an interesting challenge to the current system. Many ordinary consumers and banking professionals feel that the FICO number does not provide a truly accurate picture of an individual?s credit risk, and the three major credit reporting agencies are certainly hoping that the lending industry will look to the new Vantage credit score as an alternative.

By Beconrad
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