VantageScore can be described as a credit score that lenders use in order to assess potential borrowers. This score is used by credit card lenders, as well as fintechs. In fact, nine out of ten of the nation's largest banks and credit unions use VantageScore credit scores.
FICO
FICO and VantageScore score are used to calculate credit scores, but they are not the same. FICO scores must have at least six months worth of activity in order to be awarded a score. VantageScore does not care about how many accounts you have, or how frequently 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. The VantageScore can give you an idea of your credit status. Keep both scores in view. A VantageScore 623 is considered to be a high credit score. It is just below the fair credit cutoff.
VantageScore
VantageScore is the consumer credit scoring system. It was created through a joint venture among three major credit reporting agencies in 2006. Each of the three major credit bureaus owns 50% of the VantageScore management company. Credit scoring is designed to empower consumers to make financial decisions.
VantageScore uses machine learning to assess a person's credit risk. It can also rate people with poor credit histories. The company claims to have the ability to rate over 30,000,000 people. But, if credit is not your first, VantageScore might not be available for several months.
FICO 8
The VantageScore credit score is based on the same calculations as the FICO 8. However, VantageScore's weighting system differs from the FICO 8. 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.
Payment history is an important factor in both VantageScore and FICO formulas. FICO has payment history as the most important component. VantageScore places it third. Your score will also be affected by the age of your credit history, and the types of credit accounts that you have. VantageScore also evaluates your credit usage. It recommends that credit balances not exceed 30% of your credit limit.
VantageScore 4
VantageScore4.0 is a new model for credit scoring. It uses machine learning techniques to give scores that are more accurate. However, higher scores do not necessarily come with greater accuracy. 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. Consumer websites are also incorporating the system into their websites. Your VantageScore will be requested if you're applying to rent a space.
Tenant Data vantage credit score
TenantData's VantageScore 30.0 scoring model, which TenantData has developed, will impact tenant screening and the rental industry. Although the FICO score continues to be the industry's most important credit score, the new model promises to be more accurate and predictive. It features many important changes that are not only compatible with the current FICO credit scores range.
VantageScore ranges from 300 to 850. An ideal score is 661 or greater. If the score is below 660, it means that improvements are needed. Tenants can pay down their debt or make on-time rent payments to increase their VantageScore. Tenants can report past and future rent payments to their credit reports, which will help improve their credit score.