New Credit Model May Confuse Danville Residents.

Comments(0) By Mike Miller •April 29th, 2008

By now most of you know a general ballpark for your FICO score, but do you know your “VantageScore“? Be prepared for that question in the future when the credit companies launch their answer to Fair Issac (FICO). In a not too surprising move, the actual credit repositories, Equifax, Experian, and Transunion, have announced their version of a new credit scoring system which will cut out the middleman (and the fee which they pay to FICO each time their formula is used to come up with the FICO score. Don’t expect the consumer to save any money though, the credit companies want a piece of this big pie, and you will see much more in this in the next year.

The basic model of the ratings is better than FICO, with a standard grading system that is more intuitive.

901-990 equals “A” credit

801-900 equals “B” credit

701-800 equals “C” credit

601-700 equals “D” credit

501-600 equals “F” credit

Simple huh? Compared to the older FICO model which gives you a score of 300-850 this is much more common sense. As a reminder, this score is supposed to give the lender an idea of what risk you have as a borrower but it can potentially change on a daily basis! Adding further frustration is the fact that I have seen clients with absolutely perfect credit have a less than perfect score, due to some technicality. I am able to help California homeowners strategically increase their scores for no additional charge to my loan service. Whether it is FICO or VantageScore, you want the highest number to get the lowest mortgage rate, and I can help you get there!

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Filed Under: Borrower Tips