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Latest Version of Credit Scoring Model Launched

By Faye Mergel
Published: Sunday, March 17th, 2013

The VantageScore model comes with amazing features, among which the most noteworthy one is that collection accounts that have been paid off or settled will be not be reflected in the score. Many credit consumers are unaware of the fact that paying off or settling a collection account cannot necessarily improve the score. According to other prevalent scoring models in the market, collection accounts are treated as a predictive factor of a person’s likelihood to pay off the debts in future. However, the new scoring model launched by VantageScore Solutions can efficiently exclude information of all collected data being settled or paid off, and provide accurate and reliable predictions.

Till date, millions of consumers are struggling to cope up with erroneous or misrepresented credit information, or simply a one-time mistake of missing a payment due to a hospital visit, resulting in denying credit or higher interest rates. The prime concern has always been to keep the credit scores as much predictive as possible to enable the lenders rely on them. VantageScore Solutions is owned by major credit bureaus such as Transunion, Equifax, and Experian. It has strived to improve the predictability element in its latest model by incorporating finer details into the data, which can be utilized to provide an accurate score.

VantageScore has built its innovative credit scoring model by using credit information of 45 million Americans anonymously, and thoroughly examined such data across two year time frames of 2009-2011 and 2010-2012. The new model is posing a stiff competition to the market leader FICO, incorporating the same score range as the latter, 300-850. With this feature, VantageScore tries to eliminate the consumers’ confusion of seeing different credit scores across different ranges. The new model is expected to make a real impact on the credit industry in the United States.

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