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.

BREAKING DOWN '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.

RELATED TERMS
  1. Credit Mix

    The types of accounts that make up a consumer’s credit report. ...
  2. Good Credit

    A qualification of an individual's credit history that indicates ...
  3. Precision Score

    A number used by the TransUnion Credit Bureau to quantify the ...
  4. Prime Credit

    A credit score that falls into the range that is one step down ...
  5. Credit Rating

    An assessment of the creditworthiness of a borrower in general ...
  6. Cut-Off Score

    The lowest possible credit score one can have and still qualify ...
Related Articles
  1. Personal Finance

    FICO Or FAKO? The Limitations of Free Credit Scores

    There's something you should know about the scores you get from free credit scoring services: They usually are not the same FICO scores lenders pull.
  2. Investing

    How Your VantageScore Credit Report Is Calculated

    Deficiencies in the FICO credit report have led to the creation of a new credit scoring system - the Vantagescore. Find out what factors determine this credit score, and how the model can benefit ...
  3. Personal Finance

    Meet The Company Behind Your FICO Score

    There are other credit scores that evaluate lending risk, but FICO is still the choice of most U.S. lenders.
  4. Personal Finance

    Understanding Your FICO Score

    Lenders use the FICO score to assess a loan applicant’s credit risk.
  5. Personal Finance

    Top Places To Get A Free Credit Score Or Report

    When's the last time you checked your credit report? With all the hacking out there, don't wait for the car dealer to find problems when you need a loan.
  6. Personal Finance

    How FICO Scores Are Calculated

    Lenders look at this to determine your credit risk. We explain what it is and how it's figured out.
  7. Personal Finance

    Is It Worth Paying To Check Your Credit Score?

    Generally, a free credit report is all you need. If you've had some credit issues, it may be worth buying your credit score to get a finer level of detail.
  8. Personal Finance

    What Credit Score Should You Have?

    We break down credit scores by age to see what your score should be and how it will affect your major purchases.
  9. Investing

    The Top Credit Reporting Bureaus: How Different?

    Consumers who compare their credit scores across the three agencies may find that the numbers don’t always match.
  10. Personal Finance

    What Do Credit Score Ranges Mean?

    Take a closer look at what credit scores in each range mean for your financial future.
RELATED FAQS
  1. How does the number of credit card accounts I have affect my credit score?

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential ... Read Answer >>
  2. How to Find Mortgage Lenders That Use VantageScore

    Understand the difference between VantageScore and FICO, and learn how to locate a mortgage lender that uses VantageScore ... Read Answer >>
  3. What's the difference between a credit rating and a credit score?

    Learn about the differences between credit ratings and credit scores, and review how these expressions of creditworthiness ... Read Answer >>
  4. What's the difference between credit score and credit history?

    Check out the differences between credit score and credit history, and learn how your credit history is used to create your ... Read Answer >>
  5. What are the biggest factors that can affect my credit score?

    A credit score is a numeric expression that helps lenders estimate the risk of extending credit or loaning money to people. ... Read Answer >>
Trading Center