VantageScoreSM Solutions, LLC, is a joint venture between the three powerhouse credit scoring bureaus, Experian®, Equifax, and TransUnion®. Launched in March 2006, VantageScore has two very ambitious goals: 1) to reduce credit score inconsistencies across the three companies, and 2) to help consumers better assess and interpret their credit scores. In the past, credit scores could vary significantly across these three companies, creating inconsistencies that made it difficult for lenders to interpret and for consumers to understand.
To accomplish these goals, VantageScore offers credit-score calculation based on a standardized algorithm used by all three parent companies. With this uniform system in place to calculate credit scores, variation across the three companies is now limited to any discrepancies in the specific credit information collected by each company. VantageScore also offers an overall credit score and grade based on the level of predictive credit risk calculated by their standard model. Utilizing the familiar A through F grading scale used by educational institutions, VantageScore helps consumers understand the significance of their overall number score by attaching a letter grade.
It's unknown if VantageScore will be a success or what affect it will have on the current Fair Isaac Corporation (FICO) system. FICO, however, is presently pursuing legal action against VantageScore Solutions, citing anti-trust and unfair competition violations.
This article is provided by Brian Brady of World Wide Credit Corporation and is reprinted with permission from the the Loan Toolbox. World Wide Credit Corporation is a San Diego-based mortgage firm. World Wide Credit Corporation has Spanish-speaking loan consultants available to homeowners and home buyers needing mortgage advice.
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Brian,
I read about this, it's sounds like their ultimate Goal is to help, so it sounds good to me!!
Thanks for this,
Tom Weiss