Experian Vantagescore

[Sno]

What is exactly Experian vantagescore, and how is it compared to FICO?

[Elvin]

It’s a new Credit Risk Score

Vantagescore (or Vantage Score) is a new risk scoring model that the three major credit bureaus are trying to push into the market to compete with FICO score.

Until 2006 – the 3 major credit bureaus (Equifax, Experian and Trans Union) have offered their customers FICO scores or their own propriety score.

However, since creditors and lenders can’t really compare between the bureaus’ proprietary scores – they are basically useless.

So the credit bureaus have decided to compete with FICO and to create a new standard. The result is the New Vantage Score, released in March 2006. It uses different formula and weights than FICO, and has a different score range – from 501 to 990.

There are more difference between FICO and Vantagescore. For example, while FICO starts scoring only after 6 month’s worth of credit history, the Vantagescore starts scoring immediately, so it benefits people with short, thin or no history at all.

Unfortunately, to this day creditors and lenders prefer to use FICO rather than Vantage. In fact, up to 90% of them still use FICO exclusively.

There are many more differences between the two. See this for a complete comparison between Vantage Score and FICO.

Experian vantagescore is simply the Experian credit bureau’s version of Vantage score. There are also the Equifax Vantagescore and the Trans Union Vantagescore.

[Author]

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