VantageScore can be described as a credit score that lenders use in order to assess potential borrowers. This score is used by credit card lenders, as well as fintechs. VantageScore credit scores can be found at nine of the ten nation's biggest banks and credit cooperatives.
FICO
Both VantageScore scores and FICO scores can be used to calculate credit score. However, they are different. The FICO score must reflect at least six months of account activity for you to receive a score, while the VantageScore doesn't care about the number of accounts you have or how often 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. Both scores will give you a better idea about your credit health. A VantageScore value of 623 can be considered a good credit score. It is close to the fair-credit cutoff.
VantageScore
VantageScore is the consumer credit scoring system. It was created through a joint venture among three major credit reporting agencies in 2006. Each credit bureau owns half of the VantageScore company. Credit scoring is designed to empower consumers to make financial decisions.
VantageScore's machine learning is used to assess credit risk. This allows it to rate people with low credit histories. According to the company, it can rate approximately 30 million people. But, if credit is not your first, VantageScore might not be available for several months.
FICO 8
The VantageScore credit score is based on the same calculations as the FICO 8. However, VantageScore's weighting system differs from the FICO 8. FICO scores are calculated by information from the credit report. VantageScore is calculated using more personal information such as income, political beliefs and political affiliations. VantageScore is not able to give percentages for each factor. Instead, it focuses only on "influential".
Both FICO, and VantageScore formulas both consider payment history to be a major component. In FICO, payment history is the biggest component, while in VantageScore, it is the third most significant factor. Your score can also be affected depending on the age of you credit history and what type of credit accounts are open. The VantageScore also looks at credit usage, and recommends that you keep balances under 30% of your credit limit.
VantageScore 4
VantageScore® 4.0 is a brand new credit scoring model. It uses machine learning techniques to give scores that are more accurate. But, a higher score does not always mean greater accuracy. 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, such as banks, credit card issuers, utilities, use the scoring system. This system is being integrated into consumer websites. When you apply for a rental property, you will be required to submit your VantageScore.
Tenant Data's vantage credit score
Tenant Data's new scoring model, VantageScore 3.0, is set to impact the rental industry and tenant screening. While the FICO credit score still holds the majority of industry credit scores, the new model is said to be more accurate. It mirrors the current FICO credit score range but features several important changes.
VantageScore refers to a number that is between 300-850. A VantageScore score of 661 or more is considered ideal. A score below 660 indicates that improvements are necessary. Tenants could pay off their debt and make regular rent payments to boost the VantageScore. Tenants can report past and future rent payments to their credit reports, which will help improve their credit score.