Equifax, Experian and TransUnion launch the VantageScore
Add yet another model to the long list of credit scores. Along with FICO, Beacon, TransRisk, Empirica, CreditXpert and PLUS, say hello to VantageScore. This new credit scoring formula was designed as a collaborative effort between the three credit reporting agencies - Equifax, Experian and TransUnion. Here are some details:
- The VantageScore will be consistent across all three credit bureaus.
- Variations in a VantageScore can only be attributed to differences in your credit report data, not differences in the credit scoring model.
- If you apply for a home loan with a lender using a VantageScore, all three of your credit scores will be calculated using the same formula.
- This consistent score replaces the individual scoring models (Beacon, TransRisk, Empirica) that the credit bureaus sell now.
- FICO and CreditXpert sell independent scores that can also be applied to all three credit bureaus in the same way as the VantageScore.
- The new score range is from 501 to 990, instead of the more common 300 to 850.
- VantageScores are not yet available for consumers to purchase. Only businesses have access to the VantageScore at this point.
What does all this mean? The credit bureaus are attempting to develop a uniform credit scoring model that will replace FICO scores as the most commonly used brand. The credit bureaus stand to gain quite a bit of revenue if they can convince their business partners to switch over. Consumers stand to gain if the VantageScore becomes the industry standard. Currently, variations in the hundreds of credit scoring models used can make it difficult to predict exactly where your credit will stand during a credit or loan application.
What do you think of the VantageScore? Why isn't the score being offered to consumers? If the three credit bureaus start working together more closely does it bring up possible monopoly issues? Share your feedback in the comments section below.





What difference does it make whether Vantage Score is used or FICO is used? As far as I am concerned, one who has a mightier voice wins! And, where does the customer figure in all this? The day when the customers opinion i staken into account is the day that matters most, atleast to me!
Posted by: Wandering Indian Monk | March 14, 2006 at 11:14 AM
Thanks for the comments WIM! What "customer opinions" do you have that you wish were taken into consideration by the credit bureaus?
Posted by: EmilyPeters | March 14, 2006 at 11:42 AM
To be honest, I don't think it matters for consumers. Whether it's Vantage or FICO or Beacon, it's pointless to you and me. These types of things are what lenders concern themselves with.
I'd love to see lending institutions actually do some work and check into the backgrounds of the people asking for money as opposed to looking mainly at scores.
When are they going to release the formula for Vantage? We already know the other method.
Posted by: Emma | March 14, 2006 at 04:06 PM
does anyone know of any specific lenders that are using VantageScore today???
Posted by: creditusa | August 14, 2007 at 09:23 AM