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Equifax, Trans Union, and Experian have announced a new credit scoring system. This new system, called Vantage Score, will revolutionize how the big three credit scoring bureaus do business. This new system has been developed to make it easier for financial institutions to evaluate their customer’s creditworthiness. VantageScore levels the playing field by making a standard by which credit bureaus measure credit worthiness.
Today, customers find that scores from each of the credit bureaus can vary widely. This new system standardizes how scores are derived, taking the guesswork out of the reasons why one score might be higher than another. The bureaus might have slightly different scores for a given customer in the future, but this will be based only on what actual credit information that bureau is reporting, not on how their internal system values different criteria of that information. The new system is set to take effect later this year, and the values of the scores have changed somewhat: New Vantage Score Credit Scoring Scale
Score Grade Credit Outlook
901-990 A Excellent Rating
801-900 B Good Rating but short of Excellent
701-800 C Fair; Moderate Risk
601-700 D Higher Risk
501-600 F Highest Risk |