What Is VantageScore

What is VantageScore Credit Score?

As you might well be aware by now there are many different credit scoring systems which use different scales to measure what is a good credit score. Your credit rating will depend on the system being used as well as the parameters that it uses to measure. The VantageScore is used to measure your credit worthiness as well. It is one such credit scoring model among many others such as fico credit score.

What makes VantageScore different from other credit scores? What makes the VantageScore different is that this is the first and the only credit score that has been developed in cooperation between the three national credit reporting agencies, Experian, trans-Union and Equifax. The result is that this is one credit score that is consistent between the three different national bureaus because it is built on the uniform platform and calculated on information shared by the three credit bureaus. Usually what happens is that your credit score from any one credit scoring models such as fico credit score or any other, differs from each of the different credit bureaus because the information in your credit file with each bureau might differ.

How a VantageScore is calculated

Just like any other credit scoring model, the developers of the VantageScore review a set of consumers which number more than 1 million in most cases. The historical credit profiles of these consumers are examined carefully and some labels are identified. While the exact formula and the algorithm of calculating credit score for any scoring model is not known exactly, it is now believed that the credit score is comprised of five major factors or five major credit vehicles that are thought to be most predictive of future credit risk. These five different factors are assigned different risk and weight to calculate your credit score. This is of course a very simplified explanation of the calculation of the credit score. The calculation itself is highly complex and also a trade secret with the developers of each credit were. The breakup of the information used in credit score calculation was first supplied by fair Isaac Corp. for their fico credit score. The credit score is influenced by the following factors:

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Knowing exactly what your credit is by using VantageScore

Another obvious advantage of the VantageScore is that you get a consistent, predictable and a more accurate credit score since the three credit bureaus share information and build it on a common platform. You can maintain a good financial history and make informed decisions and have the result sure positively in your good credit score. Normally, one would be led to believe that a consistent credit scoring system is preferable to one that is not. Consumers find it frustrating many times to have different credit scores from different credit bureaus where the difference sometimes can be large. It is common to find the difference of 20 – 50 points amongst different credit agencies. This can be frustrating. If you have a consistent credit score, you are in a better position to negotiate with the lenders. Knowing your credit score beforehand can put you in a strong position which can save you thousands of dollars over the installment of loan, insurance premium payments etc.

Understanding VantageScore rating.

The VantageScore is based on the traditional A., B., C., D. and F. rating. These letters are affixed to a credit score that is also measured numerically and ranges between 501 to 990. The alphabetical Association are just gives the quick and a general idea of in which range your credit score is. Going back to a typical grading system, you will know that A grade means the best whereas an F. is a bad rating. A more exact picture of your VantageScore is represented by the numerical score.

3 Credit Scores from 3 Credit Bureaus – Why they can be different

Why there are 3 credit scores from 3 credit bureaus, why are they different.

The first thing to understand is that your credit score will depend on 2 things – first, the credit scoring model used to calculate it and second, the information in your credit file with a credit bureau. Since each of the 3 credit bureaus have their own file for the consumer, this results in creation of 3 credit scores for any credit scoring model, be it FICO, PLUS™ or the VantageScore credit score.

When you order your credit score from any source, you usually get a score from 3 credit bureaus. Whether you order it from Experian, Equifax, Trans Union or myFICO.com, you will always get 3 credit scores based on the information contained on your credit file with each of the 3 credit bureau.

Why Are the 3 Credit Scores Different?

Credit scores differ for two reason, credit scoring model used and the credit bureau report used for the calculation. FICO, VantageScore (TransUnion credit score), PLUS™ (Experian credit scores), are all different credit scores. Since they are different scoring models, using different algorithms, one will obviously differ from another. So if your credit scores from TransUnion are going to different from your FICO credit scores.

Now even within the same scoring model, such as FICO (from myFICO.com) or VantageScore (from TransUnion), you are going to have 3 credit scores, each one based on the same model but each one using a different credit file from each of the 3 credit bureaus. The result is that you have 3 fico credit score, 3 VantageScore credit score, 3 PLUS™ credit score and so on and so forth, from Experian, Trans Union and Equifax.

In order to understand why your credit score from each of the 3 credit bureaus is different, you should understand why the information on your credit report with each credit bureau is different as well.

Since not all lenders are both equally to all the 3 credit bureaus, the information on your credit file also differs with each of them. This results in a disparity and difference between your 3 credit scores.

3 Credit Score Can Differ by 50 Points

Many people get perturbed by the fact that there is as much as a 50 point difference between one credit score from one credit bureau to another. However, this can happen.

Credit bureaus now share information that comes to calculating your credit score. Whereas earlier if you bought your credit score from any one credit bureau you either received their proprietary credit score or the fico credit score based on the information that they had on your credit report. Now however, all 3 credit bureaus provide 3 different credit scores based on the information on all 3 credit files with Experian, Equifax and Trans Union. The only difference is that different credit bureaus will use different credit scoring models.

It is important to note that the propriety credit scoring model used by either of the 3 credit bureaus is not really used by any of the lenders. A majority of lenders still use the fico credit score. So if you want to order your 3 credit scores in order to see what your lender might see and you apply for credit, getting your credit scores from MyFICO.com is the best option. As mentioned before, even myFICO.com will give you 3 FICO Credit Scores, each one from Trans Union, Experian and Equifax.

Understanding Your Different Credit Scores Before Buying

Different Credit Bureaus Offer Different Credit Score. Find Out More.

Which credit score to buy? Which credit bureau offers what credit score? Where can you get your FICO credit score? Which is the best credit score to use?

All these questions plague the minds of someone trying to get his hands on his credit score. Read this article in its entirety to understand the different credit scores available to you and which credit bureau uses what credit scoring model.

There is a lot of confusion in the minds regarding their credit scores, at least the first time that they are trying to access it. While at one point of time there used to be only the FICO credit score, there are now many credit scores in use. When you look for your credit score you are presented with credit scores from 4 main sources,

  • The 3 credit bureaus Experian, TransUnion and Equifax
  • And myFICO.com.

Compounding this problem is that fact that things keep changing as well. When a certain credit bureau could have been giving you your FICO credit score earlier, they may be only giving you their specialized score now. So before you order or buy your credit score, or get your score for free as a part of some trial program, you should know the difference between all the credit scores being offered from various sources and which credit score you get where.

Mostly, all websites will offer you your 3 credit scores. The question is which ones are they?

Always remember, for any one credit scoring model, you will have 3 different credit scores depending on the different information in each of your credit file with 3 credit bureaus. This is why you can see the offers for 3 credit scores on the websites.

FICO Credit Score

Let us start with the FICO credit score first. This is perhaps the most widely used credit score even today. Majority of lenders use this. At one time this was the ONLY credit score to be had. The first thing to understand about the FICO credit score is that you have 3 DIFFERENT FICO CREDIT SCORES. Each FICO score is based on information in your credit file from each credit bureau.

You have three FICO scores, one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you So, in a nut shell you have:

  • Equifax FICO Score
  • Experian FICO Score and
  • TransUnion FICO Score.

All of these 3 can be had by visiting www.myFICO.com

FICO scores are also known by different names across different credit bureaus.

Other Names for FICO Scores

FICO scores have different names at each of the credit reporting agencies. All of these scores, however, are developed using the same methods by Fair Isaac.

Equifax – BEACON® Score

Experian – Experian/Fair Isaac Risk Model

TransUnion – EMPIRICA®

For your three FICO scores to be calculated, each of your three credit reports must contain at least one account which has been open for at least six months. In addition, each report must contain at least one account that has been updated in the past six months. This ensures that there is enough information – and enough recent information – in your report on which to base a FICO score on each report.

What You Should Know About the FICO Credit Score

Credit bureau scores are not the only scores used. Many lenders use their own credit scores, which often will include the FICO score as well as other information about you. FICO scores are not the only credit bureau scores.

There are other credit bureau scores, although FICO scores are by far the most commonly used. Other credit bureau scores may evaluate your credit report differently than FICO scores, and in some cases a higher score may mean more risk, not less risk as with FICO scores.

Your credit score may be different at each of the main credit reporting agencies. The FICO score from each credit reporting agency considers only the data in your credit report at that agency. If your current scores from the credit reporting agencies are different, it’s probably because the information those agencies have on you differs.

Your FICO score changes over time. As your data changes at the credit reporting agency, so will any new credit score based on your credit report. So your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today.

Let us move on to other credit score that you usually get from the credit bureaus.

Equifax Credit Score

The credit score provided under the offers described on the website of Equifax make use of the Equifax Credit Score™ which is a proprietary credit model developed by Equifax. It may be calculated using the information in your Equifax, Experian and TransUnion credit files. This score is intended for your own educational use. There are numerous credit scores and models available in the marketplace and lenders are likely to use a different score when evaluating your creditworthiness.

Experian Credit Score

The PLUS Score, with scores ranging from 330 to 830, is a user-friendly credit score model developed by Experian to help you see and understand how lenders view your credit worthiness. It is not used by lenders, but it is indicative of your overall credit risk. Higher scores represent a greater likelihood that you’ll pay back your debts so you are viewed as being a lower credit risk to lenders. A lower score indicates to lenders that you may be a higher credit risk.

TransUnion Credit Score

TransUnion also gives you a free credit score trial from all 3 credit bureaus. It gives you a credit score that is known as VantageScore.

What is the VantageScore credit score?

The big three credit bureaus, TransUnion, Equifax, and Experian, offer their own proprietary models but usually provide the FICO score to lenders. So they created the VantageScore model to create a consistent credit score model across the three bureaus to compete with the FICO score. Thus, they can offer lenders a more “standardized” score from the bureaus and cut out the Fair Isaacs Company.

Comparison / Difference Between VantageScore and FICO

VantageScore

  • Score range is from 501 to 990
  • VantageScore uses letter grades to spell out your credit health: 901-990 = A or Super Prime, 801-900 = B or Prime Plus, 701-800 = C or Prime, 601-700 = D or Non-Prime, and 501-600 = F or High Risk.
  • Takes into account 6 components of your credit report: payment history, utilization, balances, depth of credit, recent credit, and available credit.
  • VantageScore claims to score thin file consumers more accurately by providing predicative scores for consumers with limited histories

Additional features:

VantageScore is based primarily on the last 24 months of actions on a consumer’s credit file. Always remember that any credit score model will give you 3 different credit scores across the 3 credit bureaus depending on the different information present on your credit file with each of them.

FICO Credit Score

  • FICO range is from 300 to 850 No letter grades for FICO
  • Takes into account 5 components of credit report: payment history, amount of debt, credit history, types of accounts, and inquiries.
  • Thin file consumers often cannot generate a credit score at all, or are scored with inflated, high scores because they have few credit actions on file

Free Credit Scores from www.creditkarma.com

Credit Karma provides users with their TransRisk New Account Score, VantageScore, and Auto Insurance Score as supplied by TransUnion. The TransRisk score is calculated by TransUnion using their proprietary scoring model and is the original credit score provided on Credit Karma.

The VantageScore is calculated by TransUnion using the VantageScore model, developed jointly by all three major credit bureaus. This model introduces the first, consistent scoring methodology shared by all three bureaus. The Auto Insurance Score is a numerical measurement of the risk a consumer may pose to an insurance company. This score is calculated from data derived from a consumer’s credit report.

Why Consumers Can Have More Than One And Different Credit Scores

If you have ever checked your credit scores from the three different credit bureaus you may have noticed that your credit scores are different with each credit bureau. While the same credit score could differ with different credit bureaus the fact is that there are different kinds of credit scores in use today as well. There is a reason for both.

Credit Bureaus Use Different Credit Scoring Models

Each of the different credit bureaus can use a different credit scoring model of the purpose of calculating your credit score. Although the FICO score is the most commonly used credit score and is still widely in use by all the three credit bureaus, Experian, Equifax and TransUnion have also developed their own credit scoring models. To fool.com Equifax is the only credit bureau that sells FICO scores consumers. Apart from this the three credit bureaus have different developed their own versions of credit scores that are in fact based on the FICO credit scoring models.

Equifax uses the term BEACON of the credit scores that it sells to the businesses. This is score ranges from 352 850.

Both Experian and TransUnion have also developed their own credit score calculation models.

The Experian credit score is known as PLUS score and ranges from 332 830.

The TransUnion score is known as EMPIRICA and ranges from 300 to 850.

That’s pretty much explains why there are different credit scoring models among the three different credit bureaus. One must understand that apart from having a utility value credit scores are also a business. Credit bureaus make money out of selling credit reports, credit scores and related services. This is why they would be keen to develop their own credit scoring models that they can sell individually. Before new credit scoring models were developed FICO was the only credit score that was available and being sold to the consumer is both by myFICO.com as well as the credit bureaus.

Credit bureaus have different information on the credit files.

Now reconsider why the same FICO score may be different when you view it with different credit bureaus. The three credit bureaus work independently and in competition with each other. This means that you do not share information that they have. Apart from that the lenders are not obligated to report data to any of the credit bureaus. A lender might report to one credit bureau might report what three. In order to report data to a credit bureau the lender has two become a part of the programme of the credit bureau which means that they have to take part in the information sharing. While one lender might choose to share information what one credit bureau and not the other some might decide to use the databanks of all three credit bureaus. This means that the information with the three credit bureaus is different. While one of your accounts may be reported to one credit bureau and not to be other some accounts may not be reported at all. Because one credit bureau may have different list of your accounts than the other the information that is being used by the credit bureau in order to calculate your credit score is or is different. Different information will of costs result in a different credit score being calculated.

Lenders use different credit scores.

While the FICO credit score is the commonest and most widely used credit score lenders can use more than one or a completely different credit score. The lender can use the credit score provided by the credit bureau or they can take the service of specialized scores suited to their business such as Mortgage scores and insurance scores which are different from the regular FICO scores. If you’re concerned with your credit application with one particular lender for a major loan such as a home loan you can ask the lender which credit score it uses and you can review the same in order to know how your credit rating stands in consideration of that lender.

If your lender is like several other lenders and uses the FICO score developed by FICO, formerly known as fair Isaac Corporation, you can purchase your FICO score based on Equifax and TransUnion credit reports from myFICO.com. Unfortunately consumers can no longer purchase their FICO score is based on your Experian credit report although the lenders still continue to use the Experian FICO scores. This will give will with and of

Where All You Get Your Credit Report and Fico Score

A need to order your credit report may arise in many situations a many people. Because a credit report is used for sowing different purposes and why so many different people that of using and checking your credit report is an important activity that every person must do at least once every year. Credit score credit report today is checked not only by lenders and creditors but by utility services, mobile phone operators, employers landlords and even hospitals. There are many ways in which you can access your credit report from a legitimate source.

Getting Your Free Annual credit report from AnnualCreditReport.com

This is the only legitimate way to get a free copy of your personal credit report from each of the three credit bureaus. You have been granted a right by the fair and accurate credit transactions act which is a federal law to access your credit report for free from each of the three major credit bureaus without any obligation Experian, TransUnion and Equifax.

Getting Your Credit Report Directly from the Credit Bureaus

You can also buy your credit report directly from the credit bureau. Each credit bureau has its own products and services to offer which includes a three in one report offer. Subscribing to 3 in one credit report offer means that you can view your credit report from all three national credit bureaus in one place and for one subscription fee. You can also get your credit report for free when you sign up for trial offer for one of the subscription services service. Commonly, a credit monitoring service is what the subscription is for.

Getting Your Fico Credit Scores From MyFICO.com

MyFICO.com is the only websites that sells fico credit scores. Fico scores were developed by fair Isaac Corporation over the creamy is in developing a method to calculate credit scores. MyFICO also sells and allows you to order your credit reports from the myFICO website. You can purchase individual credit reports or the three in one credit report containing all three credit reports and your credit score is.

Extra Free credit reports Every Year As per the Federal Law

Apart from the credit reports that is granted to you for free by the FACT act, there are other circumstances which are also gone by the same law under which you can order a credit report for free. These circumstances are:

If you have ever been denied credit based on the information present on a credit report — you’re unemployed and planning to look for work the next 60 days, you are on welfare assistance or you have been a victim of identity theft.

Under these circumstances you can also access your credit report for free from the credit bureaus.

Watch out for Impostor Websites When Trying to Get Your Credit Reports

There are many fishing scams related to credit notes. Apparently there are about almost hundred imposter websites for annual credit report.com. These websites either want to steal your personal information or want to trick you into signing up for a paid subscription service. In order to avoid such scams it is important that you visit only trusted websites to get your credit report, do not click on links in e-mails, if you do click a link on an e-mail check to see the address in your browser is the address you expected, enter personal information only into secure sites that have a URL beginning with HTTPs or with a lock in the lower right side of the browser or both.

Free Credit Score from myFICO Score Estimator

It’s true that government laws provide for a free annual consumer credit report to all citizens of the USA. Each individual who has a credit history can request a free copy of their credit report from each of the three national credit bureaus. However, the credit score is another matter altogether 

In order to see your FICO credit score, you have to buy one from the credit bureaus or directly from myFico.com

It is sometimes crucial and always advisable that a person be aware of what his or her credit score is. Especially if that person is going to be making an application for credit soon.

However, if you do not wish to pay a fee to see your exact credit score there are ways to get a close estimate of what your actual credit score is for free.

The most popular of these credit score estimators is the myFICO credit score estimator. It is available for free on the myFICO.com website. If you cannot locate a link for it, just do a search engine search with the terms ‘myfico score estimator’.

There are services online that can calculate an estimate of your credit score based on a series of questions. These questions are similar to the ones used to calculate your credit score by the credit bureaus and myFICO.com. They are aimed to get an idea about your payment history, credit utilization ratio, length of credit history, mix of kinds of credit etc.

An example of the question that you can be asked is:

  • Do you have a credit card?

Depending upon the answer to the above question, more follow up questions may follow such as:

  • How many credit cards do you have?
  • What is the total limit of all the credit cards combined?
  • How much balance do you carry on all the credit cards combined?
  • What is the balance on each individual card? And so on.

In order to get a fair estimate, you will need to provide accurate answers. It is a good idea to have your credit report with you since it can get hard to remember things like how long back your credit history goes and when was the last time you were late on a payment.

If you answer the questions accurately, the FICO score estimator will provide you with a credit score. However, remember that this is just an estimate and there is no guarantee of how accurate it is. Since it is not based on actual information from your credit report but on the information that you provide, you might notice a difference between the estimated score and the actual credit score.

It is strongly advised that you buy a copy of your actual FICO score before making any application for credit of importance. In fact, you should order a credit score at least once just for the educational purpose.  A credit score report is usually accompanied by detailed explanation of how your score has been calculated, what information on your credit score is influencing it both positively and negatively and how you can improve upon it.

Since you are reading this article, we can assume that you are interested in checking your credit score for free. There is another great resource that actually provides your with your Vantage credit score for free. You just have to sign up with your social security number. Visit CreditKarma.com to avail of their free score services. If you want to learn more about CreditKarma.com you can also read this post that we have written on them. You will get a fair idea of how they function and provide your with a free copy of your credit score.

3 Ways To Get Your Credit Report and FICO Scores

A credit report has become an extremely important document for a consumer.  Since lenders make lending decisions based on the information present on the credit report on, employers use it to assimilate the responsibility and character of potential employees, landlords use it to verify their future tenants and even certain utility services crosscheck the credit report before activating the service.  For this reason the federal law gives the consumer to write to view their own credit report for free from each of the National credit bureaus once every 12 months.  You had to make full use of this long to ensure that the information present on your credit report is accurate and that no suspicious activity has occurred under your identity due to identity theft or fraud.

There are three major ways in which you can access your credit report.

Get it Credit Report Free from annualcreditreport.com

Annualcreditreport.com is sites that has been established as a joint venture by the a national credit bureaus.  You can access your credit reporting for free from each of the three national credit bureaus that is Experian, TransUnion and Equifax once every 12 months.  This is the centralised site that consumer your free credit report according to the fair and accurate credit transactions act and is the only place where you can get a free credit report from the three major credit bureaus without any obligation.

Getting the Credit Report from the Credit Bureaus

You can also order your credit report from each of the three credit bureaus individually.  These reports will typically be chargeable.  The amount of money that you need to pay to access your credit report depends upon the state that you live in.  The view more complete information about the charges that are applicable in the state that you reside in, visit www.crediaid.com/free-credit-report.htm
the credit bureaus typically offer various different packages to sue different consumer needs.  You can sign up to the access a single individual credit report, a 3-in-1 package that gives you access to the credit report on from all the three national credit bureaus in one place or a credit monitoring service that allows you to check your credit report on as many times as you like not just for yourself but your entire family.

·    Equifax credit report products <http://www.equifax.com/credit-product-list/>
·    Experian credit report products <http://www.experian.com/consumer_online_products/index.html>
·    TransUnion (True Credit) <http://www.truecredit.com>

Getting Your Credit Report and Your Credit Score from My FICO.com

Fair Isaacs Corporation is the company that is credited with initially developing the first credit scoring model known as the FICO credit score.  Not only can you order your FICO credit score from the website of my FICO.com but also purchase credit reports either individually or 3-in-1 report containing reports from all the three national credit bureaus.

Qualifying for More Than Three Free Credit Reports

Even every eligible to receive a free credit report apart from the one that you access from www.annualcreditreport.com.  These circumstances include having been denied credit based on the information present or credit report, being unemployed and planning to look for a job in the next 60 days, being on welfare assistance or being a victim of identity theft. Under the circumstances you were entitled to a free credit report as well. Visit http://crediaid.com/info/03/free-credit-report-under-fcra-and-fact-act/ for more information on your free credit reports under the FCRA and the FACT act.

Warning For Ordering Your Credit Reports

At any given point of time be extremely careful where you order your credit report from.  There are several phishing and scan websites operating under the gimmick of providing credit reports.  Reports are that there are almost 100 imposter websites trying to misrepresent themselves as annualcreditreport.com.  These websites will either steal your personal information or trick you into signing up for paid subscription service.
Only was it trusted Web sites to get your credit report.  Do not take on offers and links sending e-mails.  Always check the address of the website in the address bar and if it is exactly where you went into to go.  Always fill in your personal details on secured websites that have their countries beginning with an HTTPS://.

Plus Score, VantageScore Now Available from Experian

You can purchase your Experian plus score from www.nationalscore.com.  You also get information about various other scoring models from across the country.  You can compare your score to different states and urban areas.

Since all lenders do not use the same credit score it becomes important to know which credit score your lender is using in order to be to be precisely informed as to what information the lender will be evaluating while considering your credit application.

However it is not always possible access to credit score that the lender uses for the reason that that information may not be available to you.  Even if the lender tells you of the credit scoring models that he uses in order to gauge the credit risk of borrowers that credit scoring may not be available to you at all.  There are several specialized credit scoring models that have been developed in order to provide services to different businesses with different needs.  For example mortgage lender uses a third-party company to provide what is called a tri merged credit report.  This is a credit report created by merging the reports from all three national credit bureaus.  Such third-party companies can also provide a specialized credit score based solely for the requirements of the lender which would be to approve or deny a person for a mortgage loan.
A regular consumer might not have access to these specialized business reports.

However any major credit scoring models such as VantageScore or plus score is meant to represent the same information and credit risk that any other credit scoring model which showed even though the numbers might differ.
If one credit score indicates you as a favorable risk and it is likely then whatever credit score the lender uses, that score will also reflects the same positive information.
You can access your credit report and your credit scores were subscribing to experience credit monitoring service such as the Triple Advantage.
One of the biggest advantages of purchasing a credit score is the additional information and educational value associated with it.  You usually get a complete breakdown of all the factors affecting your credit score both positively and negatively.  You can then use this information to better your credit rating of the future.  Once you implement methods and practices to improve one particular credit score all your credit scores with different credit scoring models are likely to improve as well as they would reflect a better control of your debt and credit accounts.

Experian and Other Credit Bureaus Make VantageScore Available to Consumers

A new scoring model has been introduced apart from the FICO scoring model that is called the VantageScore.  VantageScore has been developed with corporation between the three credit credit reporting bureau Experian, Equifax and TransUnion.

This means that your VantageScore credit score will be the same in all the three credit bureaus provided that the information present with them is identical.  Any change in your credit score with the three credit bureaus as far as VantageScore is concerned will be due to the difference in the information present but not due to the algorithm used in the credit score calculation.

The VantageScore is meant to offer several advantages over traditional credit scoring models in terms of providing the businesses with a better clarity and protect ability in terms of consumer risk.  For the consumer the benefit lies in the fact that the VantageScore is meant to give the lender greater transparency for approving the credit application for an applicant even if the person does not have an extensive credit history.  This will help a person who is recently trying to build a credit history or does not have a depth in his report.

You can purchase your VantageScore credit score from www.VantageScore.Experian.com.  You will also be able to read more about what it is, why it was introduced and how it works.

The VantageScore makes it easier for an individual to understand their credit score by associating the grade in terms of alphabets that range from a to F. just like the grading model in the academics.  While AA is a top-notch credit score, and F. will mean that your credit score is in dire straits.  Whenever you buy a VantageScore credit score report you will also get a thorough explanation of what factors of your credit history affecting your VantageScore both positively and negativity.  Armed with this knowledge you will know which factors to address in order to improve your credit rating.

How Good Is VantageScore ‘D’ Credit Score

The VantageScore credit scoring model uses numbers as well as alphabets to assign you were credit score.  The alphabet is used to give you a more familiar reference to whether your credit score is good or not.  In school or college a ‘D’ means that you are down in your grades.  If the same holds true when you get it in your VantageScore credit score.  The alphabet that the VantageScore assigns to credit score is called the risk great and ‘D’ is considered to be a nonprime risk.  In credit lending decisions prime is supposed to be good. So a nonprime risk great means that you are not viewed by lenders as a potential borrower.  Owing to the information present in your credit report you are high risk potential for further credit or loans.

However, when you put your credit score and that the great description you should have also received a summary and description of the factors that are affecting your credit score especially the ones that are affecting it negatively.  Those are the key risk factors specifically credit report and the ones that you should work on.  If you have missed payments in the past or have delinquent accounts on your credit report and that is the information that you cannot change as of now.  It will only go away with time.  But what you can do starting today is to become a responsible user of credit by spending carefully and making your payments on a regular basis.  Using credit in a moderate way and being done the balance every month will serve to enhance your credit rating.  Follow credit behaviour that would have opposed to the impact on your credit report.  In time you will enhance your risk great to a ‘C, ‘B’ or even an ‘A’.

While the credit score may differ from one credit scoring model to another due to different systems and algorithms being used to calculate it, the risks significance of the different credit scores from different sources are usually the same.  Since the risk factors are consistent from one credit score to another you will find that when your credit score with vantage score becomes better, so will you credit score with other credit scoring models.