Do You Know Your VantageScore?

For over fifty years, your credit score is calculated by Fair Isaac and Co-score system, and it is generally described as FICO. Now there's a new system known VantageScore. This has been a little over one years old in March 2006 launched. So why a new system was needed, and how does it differ from FICO? What are the advantages of the VantageScore, and more importantly, what are the drawbacks? And finally, how you can find outYour VantageScore?

It is a known fact that the three reporting bureaus, Experian, TransUnion and Equifax a different credit score for an individual on the basis of the records that considers each company. VantageScore was with the intention to develop a greater coherence between the three offices, so that these differences would create fixed.

The two systems differ in the way that will calculate the credit score and in the way, the result ispresented. Both systems use the same five factors in the calculation, but as places most emphasis on FICO and payment history, amount owed, so that by 65% score, these factors only 47% of the VantageScore count. For the results FICO is a number from 500 to 850 used with more than 720 regarded as a prime. VantageScore ranges from 501 to 990 produces an additional classification of letters AF for each group of a hundred. A is 901-990, whichregarded as super-prime, with C 701-800 flight and the other extreme are. F 501-600, treated as high risk.

A critique of the FICO is that while a score of 720 and a clear green light to a potential lender, there is no universally accepted classification of the lower numbers. This problem is to enable the VantageScore by the letters A through F which allows you at a glance, in which category a borrower is to say solved. However, there are critics of this systemThat suggest that, within each category there are big differences. For example, a value of 698 is only three points behind the best years, when 603 just two points clear of high risk, but they both fall into the category D.

The main reason why FICO credit scores vary between the three offices is to change the data received by everyone. While supporters say the VantageScore that their system will produce more consistent results, will admit that they, that this ultimately dependsthe quality of the data.

Your current FICO credit score from each of the three credit bureaus can be obtained, but so far only be with your Experian VantageScore offer and it costs $ 5.95.