VantageScore refers to a credit score lenders use to evaluate potential borrower candidates. 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 score are used to calculate credit scores, but they are not the same. FICO scores must have at least six months worth of activity in order to be awarded a score. VantageScore does not care about how many accounts you have, or how frequently you use them. VantageScore does NOT require a minimum credit score, but it does require at least one credit account.
VantageScore calculations are complex, and they can differ from one lender to the next. Nevertheless, you can get a better idea of your credit health by keeping both scores in mind. A VantageScore of 623 or higher is considered a good credit score. It is just below the fair credit cutoff.
VantageScore
VantageScore is a credit scoring system for consumers that was developed in 2006 as a joint venture by the three major credit bureaus. Each of three credit bureaus holds 50% of VantageScore's management company. Credit scoring systems are designed to assist consumers in making informed financial decisions.
VantageScore's machine learning is used to assess credit risk. This means it can rate people with limited credit histories. The company claims that it can rate up to 30 million people. You may not see your VantageScore if you are brand new to credit for several months or even one year.
FICO 8
FICO 8 is based on similar calculations. VantageScore, however, differs in the weighting of its factors. FICO scores use information in your credit report to calculate you score. VantageScore, however, relies on more personal details such income and political beliefs. VantageScore does not provide percentages for any factor but instead focuses on the "influential" ones.
Both FICO and VantageScore formulas include payment history as a significant factor. FICO has payment history as the most important component. VantageScore places it third. Your score can also be affected depending on the age of you credit history and what type of credit accounts are open. VantageScore also takes into account credit usage. The VantageScore recommends that your credit limits be kept below 30%.
VantageScore4.0
VantageScore 4.0, an innovative model for credit score scoring, is here. It incorporates machine learning techniques to provide scores with more accuracy. The increased accuracy does NOT necessarily mean a higher score. The new model may have an impact on your score but the fundamental factors that determine your credit score won't change.
This scoring system is used in many financial institutions including banks, credit cards issuers and utilities. This system is being integrated into consumer websites. Your VantageScore will be requested if you're applying to rent a space.
Tenant Data's Score on Tenant Data's Avantage Credit
Tenant Data's new scoring model, VantageScore 3.0, is set to impact the rental industry and tenant screening. The FICO score is still the most popular credit score in the sector, but the new model is more precise and predictory. It mirrors the current FICO credit score range but features several important changes.
VantageScore is between 300 and 800. A score of 661 is considered ideal. A score of 660 or less indicates that you need to make improvements. Tenants may consider paying off their debts and making regular rent payments to improve their VantageScore. These past and future rent payments are then reported to their credit report, which helps improve their credit score.