VantageScore

VantageScore is a credit scoring model that was created collaboratively by the three national credit reporting companies: Equifax, Experian, and TransUnion. It is one of several scoring models used by lenders and other businesses to evaluate credit risk. Like other scoring models, VantageScore uses information from a consumer's credit files to produce a numerical score that estimates the likelihood of certain credit behaviors, such as repaying a loan as agreed. VantageScore has released multiple versions over time, each with its own scoring range and weighting of factors. The model considers a variety of information, including payment history, credit utilization, credit age, and credit mix. It may also consider how recently credit accounts were opened and the presence of any collection accounts. VantageScore is distinct from the FICO scoring model, though both are widely used. Lenders may choose which scoring model to use based on their own policies and the type of credit product being offered. Consumers can obtain their VantageScore from various sources, including some credit reporting company websites and third-party financial websites. These scores are often labeled as educational scores, which means they are provided for consumer education and may not be the same score a specific lender uses for a credit decision. The VantageScore model is governed by the same federal consumer protection laws that apply to other credit scoring models, including the Fair Credit Reporting Act. Under that law, consumers have the right to access their credit reports and to dispute inaccurate information. VantageScore itself is not a credit reporting company; it is a scoring model that is licensed to the three national credit reporting companies and other entities. The model's calculations are proprietary, but the general categories of information that influence the score are publicly described in educational materials.