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No more Fico Scoring system. Vantage is taken over! Be prepared!

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Just to let you know that they are fazing out FIco and will introduce vantage, so get your game up!

Even this website has mentioned the new scoring system toohttp://www.creditinfocenter.com/creditreports/scoring/FairIsaacReaction2VantageScore.shtml

Fico score is between 300-850

The new vantage is between 501-900

Now the lenders have a choice between the 2 but which one do you think their going to use?? their going to use Vantage because they can get a higher Interest rate out of you

See it is very narrow, which means if you good credit now, its going to be bad next year.

Also there will be no piggy backing anymore

http://carolinanewswire.com/news/News.cgi?database=columns.db&command=viewone&id=331

http://searchwarp.com/swa49884.htm

http://www.consumeraffairs.com/news04/2006/03/vantage_score.html

Just food for thought. They are phazing out Fico starting next year and vantage will take over Fico. Vantage system score is on a narrower range then Fico so if you think you got good credit now it may not be good with vantage and if your credit is bad, its going to get really bad!!!!!!!!!!

Banks and creditors are already starting to use the vantage system because they can get a higher interest rate out of you. Do a google search on "Vantage Score" and find out yourself. Don't get caught up when its too late.

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No , Its called Vantage! Since Fico was getting outdated and Vantage was about to take Fico by storm, Fico quickly tried to come up with a new system too, but most creditors and CA stated they will be using the new Vantage scoring system since they can get more interest out of us..

Fico has lost its rep. their are not respected too much anymore due to the abuse of the system..

Oh and also there will be no piggy backing anymore

http://www.stopfico.com/faq-1-Seasoned+Trade+Lines.html

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I dont know what your trying to say Adam but if you do some reading you will know that Vantage score is in direct competition with Fico. My brother works at a CB and thats how I found out. Vatge score is independant of Fico. Be prepared, I know I will

"It's also a direct challenge to the Fair Isaac Corporation's FICO score, which provides the most commonly used credit scoring for mortgage lenders and other agencies.

The FICO score has, until now, been the model for the three bureaus -- Equifax, Experian, and Trans Union -- to directly gauge customer credit worthiness, or to develop their own scores.

With the arrival of the Vantage Score, the major players in the credit industry are claiming that they "will provide consumers and businesses with a highly predictive, consistent score that is easy to understand and apply."

But some observers say that the new scoring model won't change the biggest problem consumers face when it comes to credit scoring -- inaccurate or incomplete data in their individual reports."

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But some observers say that the new scoring model won't change the biggest problem consumers face when it comes to credit scoring -- inaccurate or incomplete data in their individual reports."

I don't really see the big deal. The scoring system is changing and the creditors will adjust their requirements for lending. Nothing is really changing. Bad credit is still bad credit and good credit is still good credit!

The scores mean nothing if the CRA's continue to report so much inaccurate information!

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wrong. If your borderline between good and bad your going to be effected by this. If you have okay credit is going to be bad. I urge you all to read the the links I posted.. Like I said Vantage is on a more narrow range then Fico. Alot people is going to be mad when this hit.

banks and lenders like Vantage because they can get more interest out of you because of lower score..

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Just to let you know that they are fazing out FIco and will introduce vantage, so get your game up!

Fico score is between 300-850

The new vantage is between 501-900

See it is very narrow, which means if you good credit now, its going to be bad next year.

Also there will be no piggy backing anymore

http://carolinanewswire.com/news/News.cgi?database=columns.db&command=viewone&id=331

http://searchwarp.com/swa49884.htm

http://www.consumeraffairs.com/news04/2006/03/vantage_score.html

Just food for thought. They are phazing out Fico starting next year and vantage will take over Fico. Vantage system score is on a narrower range then Fico so if you think you got good credit now it may not be good with vantage and if your credit is bad, its going to get really bad!!!!!!!!!!

Banks and creditors are already starting to use the vantage system because they can get a higher interest rate out of you. Do a google search on "Vantage Score" and find out yourself. Don't get caught up when its too late.

The first link you provided, does not even mention Vantage. It's just talking about no more piggy backing...nothing new that most of this forum hasn't already heard at least ten times.

The second link you provided, is dated March 15, 2006. It's a little outdated.

The third link you provided, is also dated March 15, 2006. Also a little outdated.

Was your purpose to come here to spread panic among the forum readers?

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How is that spreading panic?? Its the truth. Vantage was 1st introduced last year and the article was written then to prepare people for whats to come.

even this website has mentioned it too http://www.creditinfocenter.com/creditreports/scoring/FairIsaacReaction2VantageScore.shtml

Anyway I know someone who works for th CB and they told me Vantage will be the number 1 scoring system by the end of next year, and some banks are already using Vantage. Just call some lenders and find out.

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Heres My 2 cents

Why is it assumed that if you have a 800 FICO now that it will remain an 800 on the new scoring system when in actuality since the new scoring system has a broader range you may be a 900 on the new system. and remain in the "A" group.

I saw nothing in all those articles stating that your fico score would remain the same during the transition.

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You are implying the world is going to come to and end when Vantage rolls out ... when ever that may be. I doubt that is going to happen.

That aside, how should we "prepare" ourselves for this as you mentioned? There is nothing we can do, that most of are already doing...removing inaccurate information from my credit report.

Are you implying you know an insider who we can give a sawbuck to, who will then in turn improve our new vantage score?

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I'm surprised at the previous posters claiming that Vantage is fico?:confused:

Its independent through the 3 CRA's.

My friend just received a TU report with a Vantage score in the high 600's described as Bad. I have also recently read about Mortgage lenders looking at Vantage scores....so it's being used to some degree.

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Vantage is going to be a competitor of FICO. Meaning, we will have to pay for our FICO score from the BIG 3 and our Vantage score from the BIG 3. It's just another way to get money out of the consumer. I think it's good to have competitor's offering the same product but these are two different calculations envolved and in my opinion two different products. It's like paying for an orange from one store and getting Vitamin C from the orange and paying for an apple from one store and getting whatever an apple gives you...good teeth maybe? lol

But like one of the previous posters said...good credit is still good credit and bad credit is still bad credit.

Vantage hasn't had a press release since 09/06 regarding this matter.

http://www.vantagescore.com/pressreleases.html

Here is an article from bankrate released in 03/06.

http://www.bankrate.com/brm/news/debt/debtmanageguide/vantage-scores1.asp?caret=40

New credit score now online

By Joanna Glasner • Bankrate.com

A new credit scoring system that rivals the traditional FICO score is now available to consumers.

For $5.95, Internet users now are able to check their VantageScores online through Experian, one of three U.S. credit-reporting bureaus that jointly developed the system. The site also includes a simulation showing how potential actions, such as closing a credit-card account or making a late payment, could affect a person's score.

Unlike FICO, which is solely a numerical score, a VantageScore consists of both a number and the letter grade A, B, C, D or F. While the two scoring systems may look different, the behaviors leading to high or low scores are similar.

"The same traditional truths hold," said Stan Oliai, vice president of consulting and analytics for Experian. "It's good to have credit, but not too much. It's good to use credit, but not too much."

VantageScore was introduced in March by credit-reporting agencies Experian, Equifax and TransUnion, which touted it as a simpler scoring method because it uses a single formula to evaluate consumers' debt risk profile. Under FICO, each credit bureau uses a different method for calculating credit risk.

Neither the credit bureaus nor Fair Isaac Corp., which markets FICO, make public the exact formulas they use, although they do disclose the main components. People who score high on FICO, credit bureaus representatives say, should also fare well using VantageScore.

Oliai also claims that VantageScore does a superior job of evaluating the credit of so-called "thin files," or consumers with short credit histories. The system segments people in a particular category, such as individuals with a short credit history or a bankruptcy filing, into high- and low-risk groupings. Such information is particularly sought after for subprime lenders, who lend to people with tarnished credit records at above-market interest rates.

Consumer confusion ahead

Consumer advocates say credit seekers could be at some disadvantage if VantageScore gains acceptance. The advent of competing credit scoring systems, they say, could make the already confusing task of understanding one's credit score even more bewildering.

"Until now, if you were given a 720, you knew that was a good score," said Gail Hillebrand, an attorney at Consumers Union. "Now, in evaluating your score, you need to know what the grading range is, and that's a new question consumers didn't have to ask before."

Under VantageScore, credit scores range from a low of 501 to a high of 990. Each 100-point interval corresponds to a letter grade, in ascending order. A score of 501 to 600, for example, would translate into a grade of "F", while someone with a score greater than 900 would receive an "A." More than two-thirds of all consumers qualify for a grade of "C" or higher. FICO scores, by contrast, range from 300 to 850, with 85 percent of Americans coming in at higher than 600.

What's in the formula?

In most respects, VantageScores are calculated along the same lines as FICO scores. The creditworthiness formula takes into account consumers' bill-payment histories and how much debt they are carrying.

Under VantageScore, the factors contributing to a high or low score include:

VantageScores

With VantageScore, the factors contributing to the score include:

• 32% payment history

• 23% utilization of available credit

• 15% credit balances

• 13% length and depth of credit history

• 10% recently opened credit accounts

• 7% available credit

FICO scores

For FICO, factors contributing to the score are:

• 35% payment history

• 30% amount owed

• 10% types of credit in use

• 15% length of credit history

• 10% new credit

Credit scores from vary from bureau to bureau due to differences in scoring methods and data.

Because VantageScore is touted as using the same algorithm to calculate scores across all the credit-reporting companies, numbers should vary only if the bureaus have different data on file. Data variances sometimes occur because lenders report credit activity to only one or two bureaus. Credit records often also contain inaccurate information.

Who's using VantageScore?

Today, more than 200 lenders are testing VantageScore as a primary scoring method, says Experian's Oliai, who says he expects lenders will test the three-month-old system for at least six months to a year before using it to make credit-granting decisions.

To date, no lenders have announced that they're switching to VantageScore. Credit bureaus expect that smaller lending institutions will be earlier adopters of the scoring system and that large banks will wait longer and perform wider testing before considering a switch.

While the credit bureaus have not disclosed how much they will charge lenders to use VantageScore, Oliai says the amount is competitive with the cost of tracking credit scores through FICO. Although lenders can implement both FICO and VantageScore, he expects that the vast majority eventually will pick one or the other. Each credit bureau prices and markets VantageScore independently.

FICO also employs scorecards developed to be predictive of consumers with limited credit histories, says Tom Quinn, vice president of scoring for Fair Isaac Corp. In general, Quinn says, the procedures used to determine the risks of lending to "thin-file" consumers are quite similar to those used for evaluating people with lengthy credit histories.

Who benefits from VantageScore?

While VantageScore will be confusing at first, it's unlikely to change much in the way consumers apply for and receive credit, says Matt Fellowes, author of a Brookings Institution study on credit scores and financial mobility.

"It's clear this is a business-driven decision. This isn't a consumer-driven decision," Fellowes says, regarding the credit bureaus' collaboration on VantageScore. "It's clear that FICO has the major market share, and the bureaus have always been hurt that they each have their own scores."

Fair Isaac Corp., the Minneapolis financial-services firm that introduced FICO in 1989, stands to lose the most if VantageScore gains market acceptance. Its stock fell 6 percent the day TransUnion introduced VantageScore. The credit bureaus stand to profit the most if VantageScore succeeds.

For consumers, Fellowes says, VantageScore falls short of addressing a primary concern: mistakes in credit records.

Currently, credit bureaus are not required to publicly report assessments of the accuracy of their information, although they do track such data internally. Fellowes also sees risks associated with using a single creditworthiness formula at all three credit bureaus.

"I'd much rather take the average between three different scoring methodologies than to take the exact same methodology across all three bureaus," he says.

-- Posted: July 1, 2006

PS: I'm not sure why, but this thread has my blood pressure high.

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I'm surprised at the previous posters claiming that Vantage is fico?:confused:

Its independent through the 3 CRA's.

My friend just received a TU report with a Vantage score in the high 600's described as Bad. I have also recently read about Mortgage lenders looking at Vantage scores....so it's being used to some degree.

Thank you. Someone knows about whats to come

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What is to come? You're making a huge deal out of nothing. Some creditors will use Vantage, some will use FICO. Some will pull TU, Some will pull EX. Some will pull EQ. Hell, some will even pull Innovis. That is how it has always been and it will always be that way. So to come here and act as though the entire industry is going to be turned upside down is just stupid.:roll:

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