I'm wondering if V 4. They score things differently like which collections are factored in or VS doesn't factor in closed accounts while FICO does. That's just an example of differences. Another one, in regards to medical collections, both vs 4. While you may not have a collection on your reports, there are other things that they weigh differently.
VS is heavily into trended data. So, if you have a history of carrying a balance or only pay the minimum due, it could affect your score if you've been doing it for a while. When I look at my VS4. This is the breakdown of the factors and their relevance to VS4.
Notice that in this model, utilization is the most important factor, more so than even payment history. Compare these factors and their comparative influence on score with the known FICO pie slices and you can easily see how the two algorithms will come up with vastly different scores. Ahhh, the trended data - Perhaps that explains it. FICO Score Factors: Most influential: Payment history on loans and credit cards Highly influential: Total debt and amounts owed Moderately influential: Length of credit history Less influential: New credit and credit mix the types of accounts you have.
VantageScore Factors: Most influential: Payment history Highly influential: Age and type of credit, percent of credit limit used Moderately influential: Total balances and debt Less influential: Recent credit behavior and inquiries, available credit.
Consumers often see the biggest discrepancy in scores when they apply for a mortgage, experts say. As such, lenders generally follow their guidelines to ensure their loans can be resold to investors. Last month, however, the Federal Housing Finance Agency issued a final rule that allows Fannie and Freddie to employ alternative models— which means VantageScore could be considered by those government-sponsored enterprises.
It's an about-face from the originally proposed version of the rule, released in December, which would have banned Fannie or Freddie from using a model owned in part by the company providing the credit score. That would have eliminated VantageScore due to its ownership by the three largest credit-reporting companies, which provide the scores that end up at Fannie and Freddie.
Whether the policy change would allow VantageScore to gain traction any time soon is uncertain, partly because FICO scores are so embedded in how lenders assess consumers' ability to handle their debt, Bingham said. It's their money at risk. Meanwhile, a VantageScore spokesman said the important thing for consumers to pay attention to is their number and whether it's improving or getting worse. Bingham, however, said that's not always the case. Yet whether it's similar or not, VantageScore does come with an advantage: Consumers can often access it for free.
Checking a FICO score that a lender plans to use can mean paying for it — although lenders also are required to tell you the score they used in their decision if you are either denied a loan or credit, or are offered less favorable terms than other consumers get. With your permission, Credit Karma then accesses your credit reports, compiles a VantageScore, and makes it available to you. They are the two biggest competitors in the business of creating scoring models that are used to rate the creditworthiness of consumers.
To complicate matters, both update their models occasionally, and lenders use different versions with slightly different results. You don't have a credit score. You have many credit scores, each calculated by a lender based on one of many models or versions of models. The important thing is, they should all be in the same range, such as "good" or "very good.
Your score should be roughly the same on either model. One may take longer to record a loan application. But if your credit is "good" or "very good" according to one system, it should be the same in the other. Credit Karma will access your credit information from TransUnion and Equifax, two of the three major consumer credit agencies. The third is Experian. It will come up with its own independent rating based on VantageScore. You will then receive your current VantageScore rating and the more detailed credit reports behind it.
But, besides this free service, Credit Karma has other related services, including a security monitoring service and alerts for new credit checks on you. Outside of Credit Karma, many of the best credit monitoring services provide similar alerts and services.
And, once it has your personal information, you can search for personalized offers for a credit card, a car loan, or a home loan, and your search won't pop up in your credit report on Credit Karma or anywhere else.
A standard section of credit reports is "inquiries," which lists requests for your report from lenders you've applied to for a loan. Credit Karma also offers personalized recommendations on money management. You might be Overpaying! Today, Lin is chief executive officer, Marciano is chief technology officer, and Mustard is chief revenue officer.
Credit Karma's business model is not entirely altruistic. It is a for-profit business that makes money by giving you a free credit score in exchange for learning more about your spending habits and charging companies to serve you targeted advertisements.
Credit Karma places advertisements in front of its users, hoping that they will respond to them by clicking on them. Many of these advertisers are lenders, and Credit Karma may earn a fee if you apply through one of its links.
Your personal data is valuable stuff to advertisers, and they pay more to target it. With more than million users, this is a healthy revenue model for Credit Karma. Investopedia reached out to Credit Karma to ask why consumers should trust Credit Karma to provide them with a score that is an accurate representation of their creditworthiness.
We provide VantageScore credit scores independently from both credit bureaus. The credit scores and reports you see on Credit Karma reflect your credit information as reported by TransUnion and Equifax, two of the major consumer credit bureaus. These scores are not estimates of your credit rating, which makes them accurate and reliable. FICO is a model used to create a score by looking at your files from the three major credit reporting bureaus. VantageScore follows much the same process, except that its scoring model was actually created by the credit bureaus.
Although VantageScore is less known to the public, it claims to score 30 million more people than any other model. If you're young, that could be important. VantageScore and FICO are both software programs that are used to calculate credit ratings based on consumers' spending and payment history. VantageScore, released in , was developed by the three leading consumer credit agencies, Experian, Equifax, and TransUnion. For that matter, you may get a different FICO score from various sources at any given time, depending on whether the source uses a specialized variety of FICO or the most-often-used base model, and which of its many versions is used.
The key point is, your score should be in the same range on any or all of those models. The differences are relatively minor:. But again, keep in mind that the exact impact a specific category will have on your credit scores can vary depending on your individual credit history and the specific credit-scoring model used.
Applying for new lines of credit — such as student loans, credit cards or mortgages — can negatively affect your credit scores. But applying for multiple lines in order to compare rates makes sense if you want to get the best deal. VantageScore counts multiple inquiries, even for different types of loans, within a day period as a single inquiry.
Take note though that according to the Consumer Financial Protection Bureau, mortgage loan inquiries within a day window are recorded as a single hard inquiry. An inquiry is a request for your credit file.
There are two types : hard and soft. Hard inquiries occur when lenders look at your file after you apply for credit.
0コメント