There is a new credit reporting number for consumers, called VantageScore. Created by the three major credit reporting companies (TransUnion, Equifax, and Experian), the Vantage number is calculated using a different model than what we are all accustomed to. This makes it a better tool for predicting financial risk and when you apply check credit report, the Vantage number will be your most reliable predictor.
This new rating was designed to be a more general ranking than those created by the three major credit reporting agencies. It is considered more accurate and consistent which makes the loan application and granting process easier for borrowers and lenders.
Many people can benefit from the new Vantage rating. Consumers who already have good credit will continue to rank as low-risk. But consumers who do not frequently use credit will be able to get a better rating than previously, as this model does not rely as heavily on past credit use.
The likelihood of serious delinquencies on any type of credit account will be predicted by the Vantage model. Ratings between 501 and 990 are given to consumers based primarily on their past 24 months of financial transactions. A higher number indicates a lower risk (as with conventional ratings of the past). Because they helped develop the new scoring system, TransUnion, Equifax, and Experian all have access to a consumer’s Vantage number.
A slightly different conventional ratings among the three major reporting companies may occur for some consumers. Those differences will be minimized with the new Vantage algorithm and will only happen if there is a discrepancy in the data held about the consumer with the different credit reporting agencies. Ultimately, there will be a more reliable and consistent rating across the board. Apply credit check reports to see if the credit companies have consistent information in your files.
High consumer demand for more consistent ratings as well as lender demand for better risk prediction prompted the development of the Vantage algorithm. Because TransUnion, Equifax, and Experian worked together to create the Vantage algorithm, these goals should now be met.
The Vantage rating will be used by the three credit reporting companies in addition to their conventional ratings and will not replace the three traditional credit scores. However, it will help make credit ratings more consistent, assisting both consumers and lenders when they apply check credit report.
Information about your Vantage rating can be obtained from TransUnion, Equifax, or Experian and it is advised to get your rating from each of these agencies to check for discrepancies. Again, the scoring range is different (501…#8220;990). Good luck credit hunting!
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