VantageScore now a rival to FICO scores

When shopping around for a new line of credit, you know the drill: Check credit reports, fix any errors and purchase your FICO scores; until recently, that was all you needed to find out which interest rates lenders might offer you. Now, add the VantageScore to your credit vocabulary.

In March, the three major credit bureaus — Equifax, Experian and TransUnion — jointly announced the launch of the VantageScore, a new credit worthiness measurement tool to rival Fair Isaac's FICO score. While the VantageScore was immediately made available to lenders, Experian was the first to offer consumers access to their scores last month.

VantageScores may vary from bureau to bureau, depending on what information each has compiled on a consumer's credit activity.

Like FICO (founded in 1956), VantageScore uses a numeric scale in the hundreds — 501-990 vs. FICO's 300-850 — but also assigns a grade: 901-990 = A, 801-900 = B, 701-800 = C, 601-700 = D, 501-600 =F. It weighs aspects of the credit profile differently. However, for both scores, payment history remains the No. 1 factor.

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