New Credit Scoring Available to Consumers and Lenders
This is pretty exciting news for those of us who prefer not to use credit cards and prefer to pay cash for what we buy. You will now have a number and a grade A, B, C, D or F to determine you credit worthiness.
While it still remains important to have and use credit VantageScore will evaluate credit worthiness by taking into account consumers’ bill payment histories and how much debt they are have.
FICO Scoring factors contributing to a credit score:
- 35% Payment history
- 30% Amount owed
- 15% Length of credit history
- 10% Types of credit
- 10% New credit
VantageScores, the contributing factors to a credit score are:
- 32% Payment history
- 23% Utilization of available credit
- 15% Credit balances
- 13% Length & depth of credit history
- 10% Recently opened credit accounts
- 7% Available credit
You credit scores will vary if the credit reporting bureaus have different data on file. Information reported by lenders is not always accurate or consistent when reported to each of the three bureaus.
VantageScore credit rating system is currently being tested by over 200 lenders for 6 months to a year before using it to make credit granting decisions.
We are looking forward to seeing other options to rating credit worthiness.