Vantage Score is using similar criteria to weigh your credit worthiness as does FICO. The primary differences are the weighting that they place on the different components and the fact that they pull data from all three credit reporting bureaus in determining your score. We look at their six scoring components next.
1. Payment History – Highest Weighting
The top forecaster of risk for you with Vantage Score is your payment history. Their model assigns a 40 percent weighting to this, making it twice as important as their next most important category, or as important as the second and third categories combined.
Late payments must be avoided at all costs. These can stay on your credit report for as long as seven years.
2. Age/Type of Credit – Extreme Weighting
This category is the combination of credit history length and your kinds of credit. If you are able to make on time payments on a five year auto loan while you are paying 30 year mortgage payments and monthly credit card bills, then Vantage Score considers you exceptional in this category.
It counts for 21 percent, making it the second most important part of the algorithm.
3. Credit Utilization – Extreme Weighting
To come up with this figure, you simply divide your total balances by your available credit. You should maintain this level at less than 30 percent. Ten percent is even better.
4. Total Balances – Medium Weighting
Vantage Score gives 11 percent weighting to your total debt category (whether it is current or delinquent). By lowering your total debt, you will achieve a higher score in this category.
5. Recent Behavior – Low Weighting
This category gets five percent. It looks into how many recently opened accounts you have as well as the quantities of hard inquiries. It is considered higher risk when you have a larger number of hard inquiries since you could be taking on significantly more debt.
6. Available Credit – Extremely Low Weighting
This category counts for three percent. Available credit refers to the amount in credit that you have available for use at any given point. The more credit you have available, the more points they will assign you in this least important category.
Credit Karma is the biggest name using Vantage Score’s model these days. They offer a completely free service (giving you your credit report and a credit score) that is subscribed to by over a hundred million consumers. You can also get credit monitoring from them.
Vantage Score is also on revised versions now. In 2017, they changed their model in the trended data. Now if you are making larger payments to pay down your debt, then you will get more points than an individual who only makes the minimum monthly payments and one who is gradually increasing credit card debt.
Something else that sets Vantage Score apart from FICO and other credit scoring models is that they ignore collections if they are under $250. They also provide dispensation for people who have suffered from natural disasters. Vantage Score also gives a letter grade of A through F alongside their credit score so that consumers are better able to comprehend what their credit score signifies.
Several elements are not covered by your credit scores. One of these is if you have been turned down for credit. Another is your marital status. Your income does not show on your credit reports either. Since this information does not appear in your credit reports, it is not directly reflected in your credit scores.