Published: June 2006

Experian’s new credit scores are available to consumers

The three national credit reporting bureaus, Equifax, Experian and TransUnion, announced earlier this year that they have developed a credit score model to compete with the current industry dominant FICO score from Fair Isaacs. The new scoring model, now available to consumers, uses an academic scoring model (A, B, C, etc.) as opposed to the FICO numbers-based model. The first to reach the consumer market, VantageScore from Experian, costs $5.95.

Consumers can now purchase Experian's VantageScore from Experian or just explore the site's associated educational resources.

According to an Experian press release, the new scoring model and interactive tools are designed to help consumers evaluate their credit standing and understand the factors that contribute to the VantageScore, a new credit scoring model launched in competition to the FICO credit score. The VantageScore site also includes a score illustrator to learn how potential actions could impact the score, national VantageScore averages and comprehensive educational reports on credit.

Consumers by law can get free annual copies of their credit reports at Annual Credit Report, but credit scores are not free and are included only if consumers pay extra.

VantageScore was introduced in March 2006 as the credit reporting industry’s first credit score developed jointly by the three national credit reporting companies but until now was available only to businesses and lenders. Experian is the first of the three companies to bring the score to market for consumers.

“VantageScore is a breakthrough in the industry,” said Maxine Sweet, vice president of public education for Experian. “Our goal is to help consumers recognize that their behavior in managing credit obligations influences the financial terms offered by the credit granting community. VantageScore provides consumers with their current score, the factors behind the calculation of the score and an opportunity to explore how future credit activities can help them accomplish their financial objectives."

Experian says that VantageScore was developed as a direct result of market demand for a more consistent and objective approach to credit scoring methodology. Because a score is based on the underlying credit bureau data, Experian will leverage its File One consumer credit database to provide consumers with their VantageScores by Experian based on the most current credit information available.

Experian says its VantageScore provides businesses and lenders with a highly predictive, consistent score that is easy to understand and apply. VantageScore uses a score range from 501 to 990. Many consumers will recognize the score groupings that approximate the familiar academic scale:

• 901–990 A
• 801–900 B
• 701–800 C
• 601–700 D
• 501–600 F

According to the Experian press release, "The new scoring system addresses a potential disadvantage of existing scoring solutions in the marketplace by limiting any variances in credit scores between credit reporting companies to data differences within each of the three consumer credit files, not the structure of the scoring model or interpretation of the data."

For More Information

VantageScore from Experian Frequently Asked Questions

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