VantageScores provides clearer explanations to help consumers understand why their credit score aren’t harder by providing reason codes, which are published online at ReasonCode.org. Consumers can type in a reason code received with their credit score or from a lender and receive an explanation and a suggestion for improving.
VantageScore 4.0
In Fall 2017, VantageScore 4.0 was introduced with an improved ability to score consumers with limited credit history. The updated credit score also placed less importance on certain negative credit reporting entries like medical-collections accounts, tax liens, and public records. VantageScore 4.0 calculates credit scores based on these factors:
Payment history: 41%Age/mix of credit: 20%Utilization: 20%New Credit: 11%Balance: 6%Available credit: 2%
VantageScore 3.0
In 2013, VantageScore released the 3.0 version of its credit score, which improved the predictiveness of the score and generated scores for millions of consumers who were previously unscoreable. The VantageScore 3.0 also adopted a 300 to 850 range similar to that of the FICO score. VantageScore 3.0 calculates credit scores based on the following factors:
Payment history: 40%Age and type of credit: 21%Percent of credit used: 20%Total balances/debt: 11%Recent credit behavior and inquiries: 5%Available credit: 3%
Additionally, VantageScore 3.0 forgives consumers for delinquencies during natural disasters, rewards “high quality” consumers for paid off mortgages, excludes paid collections, and minimizes superficial boosting from authorized user piggybacking.
VantageScore 2.0 and Previous Models
Scores calculated using VantageScore 2.0 and previous models ranged from 501 to 990, with higher scores being better. VantageScore assigns a letter grade to each consumer’s credit score. The letter grade takes the guesswork out of figuring out what’s a good credit score.
901 – 990 = A, Super Prime, 11% of consumers are Super Prime.801 – 900 = B, Prime Plus, 29%701 – 800 = C, Prime, 21%601 – 700 = D, Non-Prime, 20%501 – 600 = F, High Risk, 19%
The VantageScore 2.0 and models before it weighed credit score factors as follows:
28% Payment history—whether your payments are satisfactory, delinquent, or derogatory23% Utilization—the amount of credit you’ve used9% Balances—the amount of recently reported current and delinquent balances9% Depth of credit—the length of your credit history and types of accounts you have30%: Recent credit—the number of recently opened credit accounts and credit inquiries1% Available credit—the amount of available credit on your credit card accounts
VantageScore vs. FICO Score
The VantageScore formula is similar to the FICO score five-factor formula (payment history, level of debt, age of credit history, type of accounts, inquiries), but the categories are divided differently. For example, VantageScore combines age and mix of credit into a single category. In addition to credit utilization (30% of your FICO score), the VantageScore also considers credit card and loan balances and available credit, but separately.
Credit Inquiries and VantageScore
You can check your VantageScore without having your credit score drop since this type of soft credit report inquiry doesn’t affect your credit. Your VantageScore is impacted by inquiries that result from your application for a loan, credit card, or other services.
How to View Your Vantage Score
You can get a free versions of the VantageScore through a number of providers including Credit Karma, Credit Sesame, and Capital One’s Credit Wise.
