Here’s what sets the VantageScore model apart for consumers:
Traditional credit scoring models exclude many consumers, often leaving them unable to get credit. For example, other models do not score consumers who are new to the credit market or who use credit infrequently. The VantageScore 3.0 model, which is the most recently introduced model, provides a score to 30–35 million adult consumers who otherwise would be virtually invisible to mainstream lenders. So when lenders use the VantageScore model, they can provide credit to more consumers at the most appropriate terms.
When consumers buy their credit scores or get them from their lenders, they receive “reason codes.” Reason codes are explanations for why a consumer’s credit score is not higher. Not only did we simplify the explanation for each reason code, we reduced the number of codes provided. Fewer codes, written in clear, plain English, help consumers take action and improve their credit scores.
In an effort to assist consumers and provide more accurate information about reason codes, we created a free website, ReasonCode.org. When borrowers are better informed, they can manage their credit more wisely. Using the information and recommendations available at ReasonCode.org, consumers can have more confidence in their credit decisions, knowing that the information is coming from a reputable, transparent, and unbiased source.
All VantageScore models can be used by lenders across all three credit reporting companies (CRCs). Other score providers develop a specific model for each CRC at different time frames and using different data. This leads to the output of different scores. Because the same VantageScore model can be used at all three CRCs, the only score difference that may exist for a particular consumer is solely attributed to data differences within the three credit files. The data difference could be associated with when the lender “reports” or provides the piece of data (such as a loan’s current balance) to the CRC versus when the lender reports the data to another CRC.
Because the VantageScore model is so highly predictive and consistent, consumers are more appropriately matched with the types of credit and the right terms for credit. With less predictive models, consumers could be charged a higher interest rate than they deserve.
We offer all kinds of tips and tools to help make credit more consumer friendly.
While we can’t comment on individual credit scores, please feel free to let us know what other topics you’d like to see addressed in this section. (Please include an email address so we can respond to your inquiry.)