VantageScore refers to a credit score lenders use to evaluate potential borrower candidates. This score is used by credit card lenders, as well as fintechs. VantageScore credit scores have been used by nine out of ten national banks and credit unions.
FICO
While both VantageScore and FICO scores are used to calculate your credit score, they are not exactly the same. The FICO score must reflect at least six months of account activity for you to receive a score, while the VantageScore doesn't care about the number of accounts you have or how often you use them. VantageScore does NOT require a minimum credit score, but it does require at least one credit account.
VantageScore calculations are complex, and they can differ from one lender to the next. Nevertheless, you can get a better idea of your credit health by keeping both scores in mind. A VantageScore of 623 or higher is considered a good credit score. It's right at the fair credit limit.
VantageScore
VantageScore is the consumer credit scoring system. It was created through a joint venture among three major credit reporting agencies in 2006. Each credit bureau owns half of the VantageScore company. The credit scoring system was created to assist consumers with making financial decisions.
VantageScore uses machine-learning to determine credit risk. This allows it to rate people with low credit histories. The company claims to be able to rate around 30 million individuals. However, if you are new to credit, you may not see your VantageScore for several months or even a year.
FICO 8
While the FICO 8 and VantageScore credit scores are based on similar calculations, the VantageScore differs in how its factors are weighted. FICO scores are calculated using information from your credit report. VantageScore uses more personal details such as income and political views to calculate your score. The VantageScore also does not offer percentages for each factor, but focuses on "influential" categories.
Both FICO and VantageScore formulas include payment history as a significant factor. Payment history is the most important factor in FICO. In VantageScore it is the third. The age of your credit history and the type of credit accounts you have also influence your score. VantageScore also takes into account credit usage. The VantageScore recommends that your credit limits be kept below 30%.
VantageScore 4.0
VantageScore 4.0 is an exciting new model for credit scoring. It incorporates machine learning techniques that provide higher accuracy scores. The increased accuracy does NOT necessarily mean a higher score. While switching to this new model may affect your score, the main underlying factors that affect your credit score will not change.
This scoring system is used by many financial institutions, including banks, credit card issuers, and utilities. Websites for consumers are now incorporating this system. When you apply for a rental property, you will be required to submit your VantageScore.
Tenant Data's credit score for vantage
Tenant Data's new scoring model, VantageScore 3.0, is set to impact the rental industry and tenant screening. While the FICO credit score still holds the majority of industry credit scores, the new model is said to be more accurate. It has many important changes, while it mirrors the FICO credit score range.
VantageScore is between 300 and 800. A score of 661 is considered ideal. A score lower than 660 means that improvements need to be made. Tenants might consider making timely rent payments and paying down their outstanding debt to boost their VantageScore. These past and potential rent payments are reported to the tenant's credit report. This helps them improve their credit scores.