Tuesday, March 14, 2006
Stay AWAY from the CRAs’ new Vantage Scores
The CRAs announced a new “joint credit score” by VantageScore Solutions.
It’s apparently geared towards stupid people:
901-990 - A
801-900 - B
701-800 - C
601-700 - D
501-600 - F
Note that the scores are much higher than the real FICO scores. Of course the idea is DECEPTION, to mislead consumers into thinking that their scores are GREAT when they are above 700 and to keep consumers from analyzing the scores and reports so they can increase their credit rating.
It’s the win win win situation for the CRAs:
Revenue from the sales of scores AND fewer disputes AND happy clients (creditors) who buy lots of reports because they can charge consumers with less than perfect credit MORE.
Don’t waste your money on this score and don’t bother me with questions about it until these VantageScore are used to rate MORTGAGES. Of course there will be idiots who purchase these scores and discuss their VantageScore scores in the credit forums on the web. Ignore them.
Rather than having MORE scores that don’t work, we need to get back to manual credit underwriting using common sense. While there are problems with FICO scoring itself (such as lowering scores for inquiries), the main problem is the INCORRECT and INCOMPLETE data on the CRA reports. No score can be accurate while the reported data is so screwed up.
After 3 years in federal court my credit reports are STILL incomplete and incorrect.
Here’s the press release:
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Credit - Collection - Economic News • (3) Comments • Permalink
