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.

In the past, the three agencies had used internal proprietary systems for calculating credit scores. This means that even with the same exact data, all three scores could be significantly different. Lenders typically would assign your credit score based on the middle score, not the average. This had been problematic for people in the past, so the agencies sought to make this system more uniform.

Hence, VantageScore was born. Under this system, all the bureaus score your credit based on the same methods. And although the criteria may vary (not all companies report to all three bureaus), the way in which they calculate your score will be all the same, so a more standardized score is achieved.

The new system rates on a scale from 501-990, as compared to the old system of 350-850. As well, the VantageScore ratings are broken down into letter grades, with 901-990 = A, 801-900 = B, 701-800 = C, 601-700 = D, 501-600 = F. Consumer advocacy groups are still unsure about the means for gathering data, saying that this new system could be a little too generalized for true credit measurement. However, the VantageScore method must be tested more in the market to see how or if companies really latch on to it for good. In the meantime, the traditional scoring system will still be utilized.