Credit Agencies to use VantageScore
March 16, 2006
Equifax, Experian and TransUnion have joined forces and “created a new credit scoring system aimed at simplifying the loan process for both lenders and borrowers,” according to AP Business Writer Eileen Alt Powell. Traditionally, each agency used its own proprietary formula to create scores.
The new system, called VantageScore, will provide “greater consistency and predictability to consumers and credit grantors.” Here’s a breakdown of the new scoring system, which is based on the academic scale:
- A — 901-990
- B — 801-900
- C — 701-800
- D — 601-700
- F — 501-600
The new scores are available immediately for financial institutions, but won’t be rolled out for consumers until later this year.
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