VantageScore Frequently Asked Questions

What is a VantageScore?
A VantageScore is a term that you may hear about in the upcoming months regarding your credit score. So what is a VantageScore exactly? Well, it's a new form for your traditional credit score, but streamlined in a number of ways. Your credit score will definitely look different (odds are it will be higher in number), but it will essentially remain the same in status and purchasing power.

Why was VantageScore Introduced?
In March of 2006, VantageScore was introduced as the newest credit scoring system in the financial market. Why? The three major credit reporting bureaus, Experian, Equifax, and TransUnion, all felt that they needed to streamline their scoring methods to all get on the same page, figuratively speaking.

Why is a VantageScore Important?
The new VantageScore is a direct product of the collaboration between the three major credit reporting agencies: Experian, Equifax, and TransUnion. In March of 2006, these companies unveiled a new, unified credit scoring system that they hope will eventually replace the traditional FICO system. Before Vantage Score, each credit bureau used different proprietary methods for determining credit scores, which often resulted in quite a divergence among the three.

How are Vantage Credit Score and FICO Credit Score Different?
Recently, the credit market has been abuzz with news of a new credit scoring system called VantageScore. But wait! You just figured out what your FICO score meant, and now you have to learn a new one? For many people, credit ratings are confusing enough, why do we need another one?

How is the New VantageScore Calculated?
So do you know your credit score? For many people, issues of identity theft and securing lending opportunities have made them much more conscious of this number. Under the FICO credit scoring system, the major three credit reporting bureaus--Experian, TransUnion, and Equifax--all calculate a number from 300-850 and assign it to you as your credit score.