Credit Score War! FICO Credit Score vs Vantage 3.0 Credit Score… who will survive?
Credit Score War! FICO Credit Score vs Vantage 3.0 Credit Score who will win? Another shot has been fired at the industry standard FICO Credit Score by the upstart with big pockets Vantage. Vantage has just introduced the newest version of it’s Credit Score called Vantage 3.0. They have done away with the often confusing range of 501-990 and adopted the FICO range of 300 to 850! This is a big win for consumers, who will no longer be confused about the different ranges and it will help Vantage 3.0 start getting acceptance with Fannie and Freddie. I am going to make a prediction…. “if they get to keep this scoring range (300-850) Vantage 3.0 will take FICO out of the mortgage business.” I am sure that FICO realizes this and will make their lawyers very wealthy defending one of their trademarks. Expect delays in rolling this out. Although, this is a big win for consumers and Vantage (and the three major repositories that own Vantage LLC) but no so much for FICO. Although wile Vantage 3.0 may have won this Credit Score Battle they have not yet won the Credit Score War. If you see Fannie or Freddie accept Vantage 3.0 then the credit score war will be over. RIP FICO
From the Vantage 3.0 information
Highlights and features of Vantage 3.0
• More predictive: Utilizes more granular data about consumers’ credit histories than other traditional models, so the results are more accurate.
• More consistent results: Nearly identical risk alignment when pulling scores from multiple CRCs.
• Scores 27 to 30 million more people: Analyzes at least 24 months of consumers’ credit histories, rather than six, so it scores a broader population of borrowers.
• A more familiar scale: VantageScore 3.0 credit scores now use a range from 300 to 850.
• Clearer and fewer reason codes: The number of reason codes has been cut by almost half, and each has been rewritten with a clear, easy-to-understand explanation.
Plus, there’s now an online resource (ReasonCode.org) to help consumers understand the codes impacting their credit scores.
• Optimized for origination and account management: Each scorecard is optimized to
provide maximum performance for origination and account management requirements.