Chris O'Shea
There are many different credit scoring models out there. It can be confusing until you understand the differences between them. We’ll break down one of those scoring models, VantageScore.
What is VantageScore?
One of the models used by credit bureaus to calculate your credit score is VantageScore. It is a venture created by the three bureaus to use the 300 to 850 scoring model. Here’s what else you should know about VantageScore.
VantageScore 3.0
VantageScore released version 3.0 in 2013. It was the score used by all three bureaus. One big difference between Vantage Score and other scoring models is that 3.0 doesn’t include paid collection accounts. Vantage Score 3.0 is a popular model and is used often by lenders.
VantageScore 4.0
VantageScore 4.0 was released in 2017 and the big addition was something called “trended data.” While VantageScore 3.0 used a financial snapshot at a specific moment in time, 4.0 considers historical trends over time. Let’s say you’ve paid your credit card in full for years, but had one missed payment. 4.0 would consider the missed payment and the positive long-term payment trends in context.
VantageScore 4Plus
The latest model, VantageScore 4Plus, is currently in the testing phase. The biggest difference between 3.0, 4.0, and 4Plus is that 4Plus connects to your bank account.
Do One Thing: The biggest factor in 3.0, 4.0, and 4Plus is payment history. So make sure you are paying your bills on time, every time. That will help boost your VantageScore.
Jean Chatzky
