VantageScore is the American credit bureaus' consumer credit scoring system. VantageScore Solutions, LLC, is the company that manages the model. The LLC was founded in 2006. Since 2006, VantageScore has been owned by all three bureaus. It is a free and anonymous system that helps consumers determine their credit worthiness.
VantageScore 3.0
VantageScore 30.0 is a credit scoring tool that differs from FICO. Although it is different from FICO in certain ways, the core principles are the same. These principles include paying your bills on time, limiting new credit, and keeping your credit utilization at low levels. These strategies will help you improve credit scores.
Payment history is the biggest factor in VantageScore 3.0 credit scores. This is typically expressed as a percentage. Missed or late payments can really impact your credit score. Lenders are looking for evidence that you've used credit responsibly in the past.
Credit mix
Credit mix scores are credit scores that combine several factors. One of these factors is payment history. The length of time that you have had credit accounts is also considered in the calculation. Another factor is the composition of your credit accounts. This includes installments as well as revolving line of credit. A healthy credit score is a good thing.
10% of FICO scores are affected by credit mix factors. This factor considers many types of credit accounts (such as lines of credit card), and then adds them together to give you the VantageScore. A healthy credit mix will include both installment and revolving credit accounts.
Credit utilization
The amount of your credit card debt can have an impact on your credit score. A few lenders will let you have multiple credit card accounts, which can reduce your utilization ratio. Another factor is the age of your credit line. Too many credit cards can make managing your spending difficult. It can also damage your credit score to add new lines.
It is important to understand the differences between total and per card usage when it comes to credit utilization. Per-card usage is the ratio of credit available to each card's total balance. Total utilization measures how much credit you're using relative to the credit you have. Your credit score will improve the lower your overall usage.
Public records
Public records can affect a person’s credit score. They are generally considered to be very bad and can lower a person’s score. Public records are not the only information that a credit report may contain. Public records include judgments and taxliens. Bankruptcy means that a person has defaulted on his or her credit obligations.