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    Home » credit-agencies » Changes to Credit Reports and Scores

Changes to Credit Reports and Scores

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GI Aristizabal

The new VantageScore!

In recent weeks, the three national credit bureaus made the announcement they are joining forces to create a new credit score called VantageScore. As of right now, every credit bureau, that is Transunion, Equifax and Experian, have their own credit scoring system, using different formulas.

This is why when you request your credit score from any of them, the scores sometimes are not equal. You might get a score of 720 from Transunion, while you might get a 702 score from Experian, and a 695 score from Equifax.


According to Experian, "It's the most sophisticated, highly predictive scoring model that's available in the marketplace"

According to representatives from Transunion, Equifax and Experian, the new VantageScore will have a scale from a low 501 to 990. If your credit score in Equifax is 728, it will also be 728 in Experian and Transunion, if it is based on the same information.

Fair Isaac Corporation has been selling their FICO score for more than three years now via MYFICO.COM website. Fico scores are calculated different because credit bureaus and lenders use different formulas, also the data might be different, such as when you have a car loan and that creditor does not report information to all the three credit bureaus.

The VantageScore will be based on a grading scale from A to F:

  • 901-990 A

  • 801-900 B

  • 701-800 C

  • 601-700 D

  • 501-600 F



    • With the new Vantage scores disparities between the credit scores will virtually disappear, since all three credit scores will be the same, again if all three credit bureaus are reporting the same information.

    According to the VantageScore website, the new credit score will be:

  • Consistent - Identical scoring algorithm and leveled credit characteristics across all three national credit-reporting companies offer greater consistency

  • Accurate - Deep knowledge of the data ensures the most accurate scoring algorithm attainable

  • Innovative - Patent-pending applications of statistical modeling techniques enable enhanced predictiveness and ensure that consumers will receive more appropriate credit terms

  • Easy to understand and apply - Returns a score range

    • The VantageScore the score will not be available until the end of the year.

    Visit our sites aris-financial.com and aris-financial.org


    GI Aristizabal, is the owner of Aris-financial.com, based in New York City.


    He offers advise on his website on how to protect yourself from identity theft, the fastest growing crime in America, assist consumers with their questions about credit reports,credit scores, budgeting and credit card tips.


    He also has a FREE Newsletter, offering tips on how to handle your credit and tips to save money!

    Protecting personal information is important today. Criminals are just waiting for you to slip up so they can steal your identity and laugh all the way to the bank. Identity theft is a rising crime -- and unless you know the ways to protect yourself and your personal information, you're going to end up another statistic, left cleaning up the mess. You can fight back against identity theft by knowing just how easy it is to steal personal information amd by taking precautions to ensure you're not the next person caught in the game of free money. Click here for more information on protecting yourself from identity fraud.

     

     

     

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