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. FICO Score

    A type of credit score that makes up a substantial portion of ...
  2. Beacon Score

    A number generated by the Equifax Credit Bureau to rank an individual's ...
  3. Bad Credit

    A qualification of an individual's credit history that indicates ...
  4. Credit Scoring

    A statistical analysis performed by lenders and financial institutions ...
  5. FICO (Fair Isaac)

    A major analytics software company that provides products and ...
  6. Good Credit

    A qualification of an individual's credit history that indicates ...
Related Articles
  1. 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 ...
  2. Personal Finance

    What Is the Lowest Credit Score?

    Learn about the different types of credit scores available to borrowers, and find out about the lowest scores under each one of those credit scores.
  3. Personal Finance

    New Credit Score Changes: Whom They Help, Whom They Hurt

    New credit scoring guidelines at VantageScore that incorporate trended data may impact your credit score in a big way.
  4. 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.
  5. Personal Finance

    Fico vs. Experian vs. Equifax: their Pros and Cons (FICO, EFX)

    FICO, Experian and Equifax all provide information about a borrower's credit history. However, important differences exist between the three companies.
  6. Personal Finance

    Common Things That Improve And Lower Credit Scores

    Credit scores are used by lenders to estimate credit risk. Find out how you can better earn the trust of lenders and reap the benefits.
  7. Personal Finance

    More Banks Offer Free (Actual) FICO Scores

    Lenders overwhelmingly use the FICO credit score when it comes to determining creditworthiness. And thanks to a new initiative, consumers can see it too.
  8. Managing Wealth

    Can You Hit The Highest Credit Score?

    Yes – getting the maximum credit score is doable. But the real question is, does it matter?
  9. Personal Finance

    How ‘Real’ Is Your Free Score From Credit Karma?

    A free credit score sounds good, but is it worth giving up your personal information to get one online?
  10. Personal Finance

    Getting Your Credit Score from a Bank

    That all-important, once-secret number is now easy to obtain from financial institutions and credit card companies.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  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 >>
Trading Center