VantageScore
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Definition of 'VantageScore'A consumer credit rating product developed by three credit rating agencies - Equifax, TransUnion and Experian - as an alternative to the FICO Score. VantageScore uses a different rating scale (501 to 990) than FICO (300 to 850), and is branded as a score that provides lending institutions and banks information related to subprime financing. The score is calculated through a weighted average of a consumer's available credit, recent credit, payment history, credit utilization, depth of credit and credit balances. It was launched in 2006. |
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Investopedia explains 'VantageScore'VantageScore places the greatest weight on payment history and credit utilization, just as the FICO Score does. As a parallel to its numerical score VantageScore also has an alphabetical score ranging from A to F, with a determination of "A" meaning that a consumer is the most credit worthy. Most lending institutions continue to use the FICO Score as it has been around much longer, since 1956. |
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