A Vantage score is one of the two scoring methods used by banks and lending institutions as a way of knowing if you are creditworthy. The second one is known as a FICO score.
Your Vantage score relies on information from the credit bureau and does not take into account income, assets, or bank account. It’s also not based on employment history, occupation, location, marital status, or other unrelated personal information. It’s simply a method to predict whether or not you’re likely to pay your bills and financial obligations on time.
Vantage scores are impacted by you and your spending habits. On-time payments, low balances, and staying well within your credit limits means you’ll see a great score in due time.
If you have a smart credit history, both your Vantage and FICO scores remain generally on the positive side. Both use information in relation to the three Credit Reporting Agencies (CRAs) Equifax, TransUnion, and Experian. Most major lenders are accepting of either score. However, you may find that the scoring models between Vantage and FICO are just a little different.
- Though all late payments will damage your score, Vantage penalizes late mortgage payments more than any other type of debt.
- Vantage does not take into consideration paid collection accounts, which helps consumers who are trying to move on from past debts.
- Vantage has more credit-building capabilities, while FICO is more limited in this area.
Vantage scores in the past have ranged from 501 to 990, but you should pay more attention to the latest model called VantageScore3. This model ranges from 300 – 850, just like FICO.
Pulling your Vantage score from different agencies means you may see a slight difference in each. They don’t always match for a number of reasons but don’t let that stop you from increasing your numbers. The higher the score, you more of a chance you have to qualify for mortgages with excellent rates in the future!
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