Created by the three major credit reporting companies (TransUnion, Equifax, and Experian), VantageScore is a new credit reporting number for consumers. Because the Vantage number is calculated using a different model than what we have been used to it is also a better predictor of financial risk. When applying check credit report, the Vantage number will be more reliable.

The Vantage rating was designed to produce a more generic ranking than those provided by TransUnion, Equifax, or Experian. Because the Vantage rating is more accurate and consistent, the loan application and granting process is easier for borrowers and consumers.

Benefiting from the new Vantage rating, consumers who do not frequently use credit will be able to get a better rating than before. Those who started with good credit will remain low-risk as this model does not so heavily rely on past credit use.

The Vantage model was created to predict the likelihood of serious delinquencies on any kind of credit account. Consumers are given a rating between 501 and 990 based primarily on their past 24 months of financial transactions. A higher number indicates a lower risk and better credit. All three major credit reporting companies helped to develop the new scoring system and, as a result, can use a consumer’s Vantage number.

A slightly different conventional ratings among the three major reporting companies may occur for some consumers. Those differences will be minimized with the new Vantage algorithm and will only happen if there is a discrepancy in the data held about the consumer with the different credit reporting agencies. Ultimately, there will be a more reliable and consistent rating across the board. Apply credit check reports to see if the credit companies have consistent information in your files.

The Vantage algorithm was developed because of high consumer demand for more consistent ratings and lender demand for better risk prediction. Because the three credit reporting companies worked together to create the Vantage algorithm, both goals should be met with the new system.

The Vantage rating will not replace the three traditional credit scores. It will be used by the three credit reporting agencies in addition to their conventional ratings. But it will help credit ratings be more consistent, which should assist both consumers and lenders when they apply check credit report.

Information about your Vantage rating can be obtained from TransUnion, Equifax, or Experian and it is advised to get your rating from each of these agencies to check for discrepancies. Again, the scoring range is different (501…#8220;990). Good luck credit hunting!

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