The Vantage Credit Score is again making the news. What is it? It is a credit score that has been developed by the three major credit bureaus: Equifax, Experian and Trans Union.
It was designed by the bureaus to try to solve two problems. One problem was credit scores varying by up to 50 points depending on which credit bureau you used. And to eliminate which credit score you received.
It is a common myth that there is only one credit score. Currently, there are at least three different scores depending on where you requested the score from and what you requested. The most commonly used score is FICO, developed by the Fair Isaac Corp.. All three credit bureaus can provide this score, but two of the bureaus have their own score. Experian and Trans Union have their own credit scores Plus and True Choice respectively. If you request a credit score from Experian, are you getting a FICO credit score or a Plus score?
The other unspoken reason I think the credit bureaus are designing their own credit scores is to cut the Fair Isaac Corp. out of the picture. I do not have information on how the credit industry works, but I would be willing to bet your money that the credit bureaus must be paying the Fair Isaac Corp. to use the FICO formula. If they can stop using their formula, they can stop paying them money.
It's too early to tell if the Vantage Credit Score will catch on and replace FICO as the industry standard. The final decision will be made by the nation's lending institutions. What they decide to use will be what the credit bureaus provide.
Remember, if you’re not working the system, it’s working you.
PapaJoe
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