Vantage Score

Joined: 03 Nov 2007 Posts: 4007 1224 Magic Points

I am not sure what a vantage score is, have never heard of it before.

Joined: 27 Jun 2006 Posts: 1362 29592 Magic Points

Hi msburton-welch

Vantage Score is new credit score model prepared by the three major CRAs (Equifax, Experian and TransUnion ) to provide a consistent and predictive score for more people. This score will for the first time provide a consistent algorithm across the three CRAs and will be based on a 24-month review of a consumer's credit file. This Score uses the numerical range of 501 to 990 to represent the credit score of the borrowers, - higher score representing lower likelihood of risk and hence more creditworthiness.

Joined: 17 Jul 2006 Posts: 1298 28935 Magic Points

Hi msburton-welch

The major respect in which vantage score differs from FICO score is that Vantage Score is based on six variables (payment history, utilization, balances, depth of credit, recent credit and available credit) while FICO score is based on five variables (payment history, length of credit history, amounts owed, types of credit uses, and new credit). Moreover Vantage score offers a highly predictive and consistent interpretation of consumer's credit files across the three CRA's. According to Vantage Score, a score of 901 to 990 is an "A" grade score, 801 to 900 is a "B" grade score, 701 to 800 is a "C" grade score, 601 to 700 is a "D" grade score and finally a score of 501 to 600 is an "F” grade score.

Joined: 13 Aug 2007 Posts: 1498 111 Magic Points

Ya know...that doesn't seem 'fair' ( and I know ALOT of credit scoring isn't). You can have the most WONDERFUL people, seperated, divorced, windowed, etc. and falling behind in bills...trying to deal with them, like everyone else. A piece of paper ( or a 'Score' in this matter, is SUPPOSELY telling somone what kind of person you are?

Joined: 17 Apr 2007 Posts: 601 11 Magic Points

If credit reports/scoring are not fair, perhaps you can come up with a way to lend money to people that doesn't take into account a person's race, gender, age (because these are prohibited by law). Test it by loaning out all of your money...if it works, you should end up quite wealthy in a few years. If it doesn't, well, at least you were fair, right?

Joined: 08 May 2008 Posts: 382 4435 Magic Points

You have to understand that companys can't afford to take chances on peoples credit anymore than you can take a chance on the really friendly looking hitchhicker carrying an ax..... As flawed as the credit system is we NEED it. Look at what all of those Sub prime loans did to out economy. Not that the banks gave the loans to these ppl to be fair but, they did give big loans to ppl who had poor credit and well, the rest is history.

Joined: 13 Aug 2007 Posts: 1498 111 Magic Points

Yea............this is understandable. Banks and Credit Unions take chances. If the person can't pay it back OR just fails to sends anymore payments, well.........i guess 'you' can do so much. THAT just means you wouldn't want to take a chance on 'these' people anymore ( speaking with 'personal experience', too) If I loaned someone money, and they din't pay me back and I din't hear from them in a long time, i would be 'cautious', too. And, no,.....I DON'T think i would loan money to a " hitchhiker with an ax." LOL.......even if he DID have PERFECT credit. LOL

Joined: 26 Feb 2008 Posts: 4500 8812 Magic Points

All good points but I think that credit reports save us all in the long run. If they just lent to anyone and people didn't pay..we would all pay for it in the end with higher prices and interest rates. I know life puts good people in bad situations but eventually the good people work it all out and get back on track. Whoever said life was easy?

Joined: 17 Jul 2006 Posts: 1298 28935 Magic Points

I do agree with fireyone. Credit reports give us a view of the borrowers credit history which shows how much the person is eligible for the loan and his capability of repaying the loan. If lenders lend money to anybody even to people who are not capable of repaying, the economy would end up with high inflation rates. So I think that lending should always be made after taking into account the person's credit report.

Joined: 08 May 2008 Posts: 382 4435 Magic Points

LOL, I was refering to giving the hitchhiker with an ax a ride.....I'm pretty sure if I gave him money I'd consider it a robbery! ANyway, one thing I do dislike about the credit system is the way my car insurance company whom I have had for 8 years and never had a ticket or accident can raise my rates b/c I had a bump in my credit as a teenager! What does that have to do with my driving!

Joined: 13 Aug 2007 Posts: 1498 111 Magic Points

WHAT!! REALLY?? Your car insurance went up because of your credit? WOW!! Do car insurance companies check your credit? I thought they just checked your driving record. That's news to me. Actually......my car insurance actually went down, again. I have Nationwide.

Joined: 08 May 2008 Posts: 382 4435 Magic Points

Yeah, thats why they cant give you a proper quote without your SS#

Joined: 27 Jun 2006 Posts: 1362 29592 Magic Points

It is really sad if the insurance companies pull up the credit report to determine car insurance rates. I too don't find any reason of linking insurance rates with credit report. These two are totally different issues altogether.

Joined: 08 May 2008 Posts: 382 4435 Magic Points

When I got married and went to start my own Allstate policy after being on one with my father for 6 years with no accidents or late payments. They told me that my rates would triple and I would have to give a downpayment. When I asked why I was told that my husband and I were considered a high risk b/c of our combined credit score. I called every large company and was told they do the same thing.

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