Experian credit agency was the first to use the new “VantageScore” scoring system this past week. Critics are unimpressed with the new system. They feel that the new system will do nothing more than confuse consumers even further than they already are. They feel that the time wasted on coming up with a new scoring system could have been used better.
The credit companies disagree. They feel that the new system will make all scoring objective, instead of leaving it up to the individual credit companies to come up with their own interpretation of each consumer’s score. They feel that if they no longer rely on the FICO score, and instead use one scoring system, consumers will understand where they stand on the scale for each company – instead of trying to ascertain which of them is correct.
The problem isn’t just with the new system; it is with the holdovers from the old system as well. The old scores were often tabulated using incorrect data that had been reported to the credit companies. The new score does not take that into consideration, all it does is give a score to an already troubled process. ■
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