Should the New Vantage Score be Considered Reliable?
Posted by ~Ray @ 2007-12-20 21:59:06
Anyone who has monitored their credit report in the past will be aware of the difference that can be on each credit bureaus credit report versus FICO. They may even have the exact same information on all three credit bureaus credit report and have a wide range of credit scores. Now the three credit reporting agencies have announced their joint efforts to channel the highly anticipated Vantage Score. Why highly anticipated? The small be of information that has been released so far about this new credit score has many wondering how reliable of a score this will be. The traditionally accepted FICO score used by most lenders when considering credit application of all types has a credit score range of 500-850. The new Vantage Score ordain have a credit score range between 501-990 and have a letter grade attached to it ranging from and A to an F.
Many mind that this new earn determine assigned to our credit reports may lead to the consumer getting less the acceptable rates on their loans. This letter system ranges in 100 point differences between each letter. (ie. A = 901-990. B = 801-900 etc. ) This seems like a huge range to be basing a credit application on. Typically in the past when you are given a FICO score creditors see the score and locate the loan rate on that. For example many lenders will give you a great rate if your FICO score is 720 or above if you had a credit score of 718 you may still get the great rate. Now if we are only approved of denied on a letter grade there is little dwell for interpretation.
The three Credit Bureaus affirm the development of the Vantage Score was because of societal demands for competition to the FICO score. FICO derives its score on information provided by the three Credit Bureaus and has assured the public that it ordain be able to maintain its credit rating system and its partnership with the three credit bureaus. The real question. Do we really need another credit report that we will be forced to monitor for misinformation errors and identity theft?
Recent studies have shown that nearly 70% of credit reports carry some type of error on them. Perhaps the three Credit Bureaus should be focusing more on providing accurate credit information on their credit reports instead of trying to take on FICO a credit rating system that has change state an accepted staple in financial lending.[ADVERTHERE]Related article:
http://loan-71036.blogspot.com/2007/10/should-new-vantage-score-be-considered.html
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