A VantageScore is a credit score that lenders use to evaluate potential borrowers. It is often used by credit card issuers, but it is also used by many fintechs as well as installment loan lenders. VantageScore credit scores are used by nine of the ten largest credit unions and banks in the country.
FICO
FICO and VantageScore scores are used to calculate your credit rating. FICO scores require at least six months of account activity to get a score. VantageScore scores don't consider the number of accounts or frequency with which you use them. VantageScore also doesn't require any minimum credit history, though it does require that you have one active credit account.
The calculation method behind the VantageScore is very complicated, and it differs between different lenders. The VantageScore can give you an idea of your credit status. Keep both scores in view. A VantageScore of 623 or higher is considered a good credit score. It's right at the fair credit limit.
VantageScore
VantageScore is the consumer credit scoring system. It was created through a joint venture among three major credit reporting agencies in 2006. Each of the credit bureaus controls 50% of VantageScore. Credit scoring systems are designed to assist consumers in making informed financial decisions.
The VantageScore model uses machine learning to determine a person's credit risk. This means it can rate people with limited credit histories. The company claims it is able to rate about 30 million individuals. Your VantageScore score may not show up if your credit history is new.
FICO 8
FICO 8 is based on similar calculations. VantageScore, however, differs in the weighting of its factors. FICO uses credit reports to calculate your score. VantageScore relies more on personal information like income and political opinions. VantageScore is not able to give percentages for each factor. Instead, it focuses only on "influential".
Both FICO as VantageScore formulas consider payment history a major factor. FICO has payment history as the most important component. VantageScore places it third. Your score can be affected by how old you are and the types of accounts you have. VantageScore also considers credit usage and recommends keeping balances below 30% of your credit limit.
VantageScore 4.0
VantageScore 4.0 is an exciting new model for credit scoring. It incorporates machine learning techniques that provide higher accuracy scores. The increased accuracy does NOT necessarily mean a higher score. While the accuracy of this new model may impact your credit score, the main factors that affect credit scores will not change.
Many financial institutions use this scoring system, including banks, credit card issuers and utilities. The system is also being used by consumer websites. You will be asked for your VantageScore if you want to rent a house.
Tenant Data's vantage score on credit
TenantData's VantageScore 30.0 scoring model, which TenantData has developed, will impact tenant screening and the rental industry. The FICO credit score remains the industry's dominant credit score. However, the new model claims to be more accurate. It mirrors the current FICO credit score range but features several important changes.
The VantageScore is a number between 300 and 850, and a score of 661 or higher is considered ideal. A score below 660 indicates that improvements are necessary. Tenants can pay down their debt or make on-time rent payments to increase their VantageScore. These past and potential rent payments are reported to the tenant's credit report. This helps them improve their credit scores.