4 Jan
A VantageScore is a credit score derived by the three credit reporting agencies; Equifax, Experian and TransUnion. The Vantage score was created to compete with the FICO score created by Fair Isaac, which has been the gold-standard for determining an individual’s credit rating for years.
VantageScore uses the same basic underlying data as FICO but is based on six variables versus FICO’s five. Furthermore, FICO uses a 300 to 850 scale while VantageScore goes from 501 to 990, as reported by TransUnion:
- A: 901-990
- B: 801-900
- C: 701-800
- D: 601-700
- F: 501-600
The FICO score is still used by “80% of the largest banks and 75% of mortgage origination decisions.” says Ron Totaro, Fair Isaac’s general manager for global scoring solutions. VantageScore was released in 2006 and due to its relatively new status, it is used less frequently by lenders and banks. However, there are some banks and lenders out there utilizing VantageScore on a trial-basis
If you are focusing on improving credit and working on bad credit repair, use the FICO score for now. Remember that the national FICO score average is around 680, if yours doesn’t measure up, contact a reputable credit repair services company. Visit our website www.Vitessefinancial.com for more information.