Credit Reporting Agencies Announce New Credit Scoring System
The three largest credit reporting agencies in America have teamed up to create the Vantage Score. According to vantagescore.com, consumers will be rated on a scale of 501 to 990, with the higher numbers representing the best score. This system competes with the FICO score, which has a range of 350 to 850.
Getting a debt consolidation loan has always been a leading bankruptcy alternative. Will this new system make it harder or easier to qualify for a debt consolidation loan? We will not know until the system has been in place for a year or two.
The new system will use credit information from the three major credit reporting agencies (Equifax, Experion, and Trans Union), VantageScore will apparently return more predictive scores on consumers with limited credit histories, which should reduce the need for lenders to go through a manual review process and impose their own in-house rules to determine who gets a debt consolidation loan.
The Vantage Score will include a letter grade as follows:
901 to 990 = A
801 to 900 = B
701 to 800 = C
601 to 700 = D
501 to 600 = F
If bad credit is causing you to consider your bankruptcy alternatives, research your options, and be prepared to defend any negative items on your credit report.
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