This was what the credit bureaus were looking to standardize with the new Vantage Score system. The Vantage Score uses the exact same algorithm to compute the score for all three credit bureaus. Also, the score scale is exactly the same for all three bureaus.
Here is a brief explanation of the Vantage Score system. The Vantage Score system will be on a scale ranging from 501-990 (the lower the score the higher the risk to potential lenders). The Vantage Score also has adopted the classical academic scale to make it easier for consumers and lenders alike to understand where they rank with their score. This academic scale is grouped by the following:
The Vantage Score just like the FICO score will be based off the information that is reported on the credit report. It will reflect how often a consumer borrows money, how responsible borrowers are at paying back their debt on time, as well as other file content. Unfortunately the credit bureaus did not divulge how these factors would be weighted in the new Vantage Score. The new Vantage Score will also be more accurate when rating a consumer who has a limited credit history. This is one area in which the FICO scoring system was not very accurate.
The FICO scoring system will not be done away with; in fact it will still be used by many borrowers to evaluate those who are looking to get a line of credit. It will be up to the credit industry and the individual lenders to decide which score they use. In fact the rate of adoption of this new score will be set primarily by lenders themselves. As new information is presented about the new Vantage Score system, we will make sure to keep you updated.
Additional information is located on these pages: