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FICO Versus Vantage: A Cutting Edge Battle

By Andy Snyder
Published: Wednesday, November 18th, 2009

It is not only the age of cyber world these days. A lot of new things surfaces every single day from cellular phones to a new type of cancer to Vantage scores. Yes! You heard that right. There is a new way of calculating your credit score called the Vantage Scoring Method. A good credit report advice says – take advantage of it.

The Vantage Score is created by the 3 major credit reporting companies. It uses both collective and analytic techniques, providing the consumers with highly consistent and predictive scores. A good credit report advice will tell you that its advantage from the FICO score is that Vantage is easy  to understand as compared to FICO because of its greater access both to consumers with thin(short credit history) or full file(long credit history).

 Vantage Scoring Method was created late 2005 but was launched in the market only 2006. It is a method of getting your credit score by the 3 major credit reporting companies namely, Experian, Equifax and TransUnion. One of its difference from a FICO score is its range.  Vantage has a credit score range of 990 to be the highest while FICO s’ maximum score range is just 850. A good credit report advice will tell you that the difference between the score range of the two will make a lot of impact when it comes to your credit score.

The reason behind the big difference in Vantage and FICO’s score range are their variables. The latter uses only 5 variables (payment history, amounts owed, length of credit, new credits and types of credit used) while the other one uses 6 (payment history, depth of credit, recent credit, available credit, balances and utilization) as its basis in determining your credit score. The one variable that separates the two is also the main reason Vantage is receiving lots of thumbs-up these days, according a to credit report advice, because it increases a consumers potential to “score”.

Another credit report advice to consider is the determiner of the credit scores. FICO determines scores on a 12-month basis, which can be considered “short” especially if you are one who is on the verge of ”repairing” your credit scores. On the other hand, Vantage determines your credit scores on a 24-monthe period, giving you the advantage to correct and repair unsightly data (delayed payments, etc.) Not only that, The Vantage Scoring Method is reflective of the present economic situation, meaning, it can give or allow considerations on a case to case basis.

The differences of the 2 credit scoring methods discussed above are good credit report advice to keep in mind. The aim of presenting both is to give you an option. It is to let you know that you hold the key to your credit score. Giving it an upgrade will not only be advantageous to you but to your career as well. Take note that some employers go as far as using credit scores to get to know your potential. Knowing that you now have an edge to your score will take you miles after miles of success.

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