On March 14, 2006, the three major credit unions, Equifax, Experion and TransUnion, announced they would now all be using the same credit scoring system. This would enable to loan process to become a much easier one for both the lender and the borrower. This new scoring process is called “VantageScore.”
Before the new system, all three credit unions could conceivably give a different score for each loan run by them. This would then leave the lender trying to figure out what a borrower’s true score was. With the new system, all three companies will use the same methodology to determine the score, hence leaving no room for confusion.
The new scores will range from 501 to 990, using an academic scale as its reference. Experian gave the following groupings:
- A - 901-990
- B - 801-900
- C - 701-800
- D - 601-700
- F - 501-600
This should not only make it easier for lenders, but also for consumers who are currently unaware of where they sit on the financial score chart. ■
SIGN UP
