VantageScore can be described as a credit score that lenders use in order to assess potential borrowers. Many fintechs and loan lenders use it as well, although credit card issuers are known to use it. VantageScore credit scores can be found at nine of the ten nation's biggest banks and credit cooperatives.
FICO
FICO and VantageScore score are used to calculate credit scores, but they are not the same. FICO scores need to reflect at most six months of account activity before you can receive a score. VantageScore doesn’t care about whether you have multiple accounts or how often they are used. VantageScore doesn't require you to have a minimum credit history. However, it does require you to have at least one active credit card 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 is considered a good credit score. It's right at the fair credit limit.
VantageScore
VantageScore, a consumer credit scoring tool, was established in 2006 by a joint venture of the three major credit agencies. Each of the credit bureaus controls 50% of VantageScore. The credit scoring system was created to assist consumers with making financial decisions.
The VantageScore model uses machine learning to determine a person's credit risk. This means it can give a rating to people with very limited credit histories. The company claims to be able to rate around 30 million individuals. Your VantageScore score may not show up if your credit history is new.
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 use information in your credit report to calculate you score. VantageScore, however, relies on more personal details such income and political beliefs. The VantageScore also does not offer percentages for each factor, but focuses on "influential" categories.
Both FICO and VantageScore formulas include payment history as a significant factor. In FICO, payment history is the biggest component, while in VantageScore, it is the third most significant factor. The age of your credit history and the type of credit accounts you have also influence your score. VantageScore also considers credit usage and recommends keeping balances below 30% of your credit limit.
VantageScore 4.
VantageScore4.0, a revolutionary new model in credit scoring, is now available. It incorporates machinelearning techniques to give you more accurate scores. But, a higher score does not always mean greater accuracy. While switching to this new model may affect your score, the main underlying factors that affect your credit score will not change.
This scoring system is used by many financial institutions, including banks, credit card issuers, and utilities. The system is also being used by 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 VantageScore 3.0 is a new scoring system that will have a major impact on tenant screening and the rental sector. While the FICO score remains the dominant credit score in the industry, the new model is touted as a more accurate and predictive model. It mirrors the current FICO credit score range but features several important changes.
VantageScore ranges from 300 to 850. An ideal score is 661 or greater. Scores below 660 indicate that there are improvements needed. For instance, tenants can try paying down their debt and making on-time rent payments to boost their VantageScore. These past and future rent payments are then reported to their credit report, which helps improve their credit score.