New Credit Scoring System

The three credit reporting agencies, Equifax, TransUnion and Experian jointly unveiled a new credit score - the VantageScore system. According to their press release, it is "designed to simplify and enhance the credit process for both consumers and credit grantors...Under the new scoring system, credit score variance between credit reporting companies will be attributed to data differences within each of the three consumer credit files and not to the structure of the scoring model or data interpretation." Using a rating ranging from 501 to 900, VantageScore claims that it "will provide consumers and businesses with a highly predictive, consistent score that is easy to understand and apply."Expect to hear more about this in the coming weeks!To read more: VantageScore.