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 in nine of ten banks and credit unions across the country.
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 does NOT require a minimum credit score, but it does require at least one credit account.
VantageScore's calculation process is complex and can vary between lenders. However, both scores can help you get a better picture of your credit score. A VantageScore value of 623 can be considered a good credit score. It is right at 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 uses machine-learning to determine credit risk. This means that it can rate people who have limited credit histories. The company claims to have the ability to rate over 30,000,000 people. 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 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 does NOT offer percentages, but only focuses on "influential".
Both FICO and VantageScore formulas include payment history as a significant factor. FICO places payment history at the top of the list, while VantageScore ranks it as the third-most important. Your score can also be affected depending on the age of you credit history and what type of credit accounts are open. VantageScore also examines credit usage. They recommend that you keep your balances below 30% of the 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. However, the increased accuracy does not necessarily translate to 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.
Many financial institutions, such as banks, credit card issuers, utilities, use the scoring system. The system is also being used by consumer websites. When you apply for a rental property, you will be required to submit your VantageScore.
Tenant Data's Score on Tenant Data's Avantage Credit
TenantData's VantageScore 3.0 new scoring model, TenantData, is poised to make a difference in the rental market and tenant screening. Although the FICO score continues to be the industry's most important credit score, the new model promises to be more accurate and predictive. It is similar to the FICO credit scoring range but has several important improvements.
VantageScore ranges from 300 to 850. An ideal score is 661 or greater. A score of 660 or less indicates that you need to make improvements. For instance, tenants can try paying down their debt and making on-time rent payments to boost their VantageScore. Tenants can report past and future rent payments to their credit reports, which will help improve their credit score.