TomnTex Posted March 11, 2013 Report Share Posted March 11, 2013 This is from CNNMONEY.com. Because they will drop the link in a few days, so I will put it here: A new credit scoring model will potentially boost scores for many credit applicants and help establish credit for millions of people who previously had little or no credit history. The new scoring model will be used in the latest version of the VantageScore, the credit score created by the three major credit bureaus -- Experian (EXPGF), Equifax (EFX) and TransUnion. Currently, debts that go into collections, even if they are paid off, are factored into all credit scores for up to seven years, said John Ulzheimer, president of consumer education for SmartCredit.com. But VantageScore 3.0 will no longer factor these accounts into a consumer's score if the debt was paid in full or settled, just as long as the balance is zero. Also, natural disaster victims will now be able to benefit from good credit behaviors -- like making payments on time, despite the hardship -- but will continue to be protected against negative accounts. Previously, both negative and positive accounts were ignored in the aftermath of natural disasters, making it difficult for victims to improve their credit scores. Related: Employer credit checks keep jobless out of workforce With big natural disasters like Hurricane Sandy hitting thousands of consumers in the Northeast last fall and millions of others with paid collection accounts on their credit reports, many people are likely to see their scores improve under this new model, said Ulzheimer. "Consumers who have a zero-dollar balance on collections and no other negative information on their credit reports should see their VantageScore's increase significantly," he said. But the boost only matters if a lender uses the new VantageScore. While FICO is still the most widely used scoring model, the VantageScore is gaining ground. It's currently used by seven of the top 10 financial institutions, six of the top 10 credit card issuers and four of the leading auto lenders and mortgage lenders, according to its website. Related: Millions of credit reports have errors VantageScore's new model will also weigh rent and utility payment records, and public records like bankruptcies for people with very limited credit histories. This will allow it to score as many as 30 million people who previously couldn't get a credit score, and potentially help them qualify for more competitive credit rates, said Ulzheimer. Other score developers, like FICO, may follow suit. FICO announced Monday that it will begin looking into ways of factoring in alternative records to calculate scores for those without -- or with limited -- credit files. Meanwhile, VantageScore is changing its scoring range to align with FICO's 300 to 850 range. Earlier versions range from 501 to 990, often causing confusion for consumers and lenders since most are more familiar with FICO's range. "This is like changing your speedometer from kilometers per hour to miles per hour, it just makes more sense to American consumers and American lenders," said Ulzheimer. 2 Quote Link to comment Share on other sites More sharing options...
sanchezrc2 Posted March 11, 2013 Report Share Posted March 11, 2013 Wow wonder when that goes into effect Quote Link to comment Share on other sites More sharing options...
Torden Posted March 11, 2013 Report Share Posted March 11, 2013 OTOH, this will encourage CAs/JDBs to put more pressure on debtors and alleged debtors to settle at higher percentages. Quote Link to comment Share on other sites More sharing options...
willingtocope Posted March 11, 2013 Report Share Posted March 11, 2013 And...The Vantage Score has been available for a couple years now. Its the 3 CRAs attempt to cut FICO out of the picture. As it stands right now...nobody who is going to lend you money uses the Vantage score. I don't think that's likely to change... Quote Link to comment Share on other sites More sharing options...
admin Posted March 11, 2013 Report Share Posted March 11, 2013 And...The Vantage Score has been available for a couple years now. Its the 3 CRAs attempt to cut FICO out of the picture. As it stands right now...nobody who is going to lend you money uses the Vantage score. I don't think that's likely to change...I agree. Quote Link to comment Share on other sites More sharing options...
BTO429 Posted March 13, 2013 Report Share Posted March 13, 2013 Plus the cra's do not care or even investigate how a judgment or lien was obtained before they report it, They just report it. There are a lot of consumer, like myself that are dealing with judgments and liens that they did not even know existed until they applied for credit. Quote Link to comment Share on other sites More sharing options...
kutuzov Posted March 13, 2013 Report Share Posted March 13, 2013 Most if not all lenders look at your FICO score, so it won't really change things a lot, but it might help some people if they know such lender uses the Vantage score and they are within those guidelines of bad or no credit history. Quote Link to comment Share on other sites More sharing options...
willingtocope Posted March 13, 2013 Report Share Posted March 13, 2013 As far as I know, there are no reputable lenders who use the Vantage score. There are some mortgage brokers who do (its cheaper), but when the loan is run by a mortgage underwriter, they use FICO. Quote Link to comment Share on other sites More sharing options...
hipsociety Posted January 16, 2014 Report Share Posted January 16, 2014 As far as I know, there are no reputable lenders who use the Vantage score. There are some mortgage brokers who do (its cheaper), but when the loan is run by a mortgage underwriter, they use FICO.What part of this quote didn't you understand? "While FICO is still the most widely used scoring model, the VantageScore is gaining ground. It's currently used by seven of the top 10 financial institutions, six of the top 10 credit card issuers and four of the leading auto lenders and mortgage lenders, according to its website." Seems to me MANY reputable lenders are using VantageScore! Quote Link to comment Share on other sites More sharing options...
willingtocope Posted January 16, 2014 Report Share Posted January 16, 2014 Okay, so since this thread is almost a year old, perhaps things have changed. Tell us which reputable lenders are now using the Vantage Score. Quote Link to comment Share on other sites More sharing options...
VADebtor Posted January 16, 2014 Report Share Posted January 16, 2014 I question whether any lender uses the Vantage Score for credit decisions. They may use it to target offers but even that is doubtful. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted January 16, 2014 Report Share Posted January 16, 2014 Plus the cra's do not care or even investigate how a judgment or lien was obtained before they report it, They just report it. There are a lot of consumer, like myself that are dealing with judgments and liens that they did not even know existed until they applied for credit. Actually the courts do not report judgments. There are web crawler programs that search online dockets and when it gets enough identifying hits it sends a notice to the CRAs of the judgment or lien to your CR. The address is key. Based on the addresses listed on your CR the program searches court dockets in those areas. The way to get rid of them is to remove all old addresses from your CR. The address is the BIGGEST way they find them. If the program doesn't have an old address to search that court database it won't go looking for it. I got 3 tax liens removed from Equifax by deleting old addresses. Of course if you have never moved this won't work. It works when you no longer reside in the county and/or state that the court has the public record in. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted January 16, 2014 Report Share Posted January 16, 2014 What part of this quote didn't you understand? "While FICO is still the most widely used scoring model, the VantageScore is gaining ground. It's currently used by seven of the top 10 financial institutions, six of the top 10 credit card issuers and four of the leading auto lenders and mortgage lenders, according to its website." Seems to me MANY reputable lenders are using VantageScore! This story comes up annually around the beginning of each new year when consumers are making a resolution to improve their financial situation. I have seen an article like this every January or February and so far I have seen no major exodus from FICO to Vantagescore. I have several credit cards and several rejections along with a mortgage broker I am working with at a major bank and NONE are using Vantagescore. I even asked about it and the mortgage broker said it is nice that it is there but as far as he knew there were no major movements to abandon FICO for any other scoring model. 1 Quote Link to comment Share on other sites More sharing options...
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