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May 2nd, 2010 9:23 PM
What is VantageScore?
 
Launched in March 2006, VantageScore is a highly predictive and consistent consumer credit scoring model across all three major credit reporting companies (CRCs) - Equifax, Experian and TransUnion. Consumer scores fall within a range of 501 to 990, with higher scores representing a lower likelihood of risk.

According to Sarah Davies, VantageScore Solutions' senior vice president for analytics, the traditional credit report scores and VantageScore show similiar impacts of loan modification, short sales, foreclosures and backruptcies on consumers credit hirtory.

Why did the three CRCs collectively develop VantageScore? The development of VantageScore was prompted by market demand. In addition to a credit scoring model that reflected more recent changes in consumer credit behaviors, including increasing debt loads and the introduction of non-traditional debt products, lenders sought a model that delivered consistent, predictive power across all three CRCs.

While the three CRCs can now generate scores using the same underlying credit scoring model, differences in the actual scores are to be expected because each CRC maintains its own consumer credit files, which may vary. Consumers' files at each CRC can vary because credit grantors can choose which CRC they provide consumer payment data.

Posted by Russell Rowe on May 2nd, 2010 9:23 PMPost a Comment (0)

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