WHY DID THE THREE CRCS COLLECTIVELY DEVELOP THE VANTAGESCORE MODEL?
The development of the VantageScore model was prompted by market demand. In addition to a credit scoring model that reflected more recent changes in consumer credit behaviors, lenders sought a model that delivered consistent, predictive power across all three CRCs.
Prior to the launch of the VantageScore model, generic credit scores varied across the three CRCs because data was interpreted under different scoring methodologies. While there will still be some score variation with the VantageScore model due to differences in the data provided to the individual CRCs for each consumer file, the gaps among the results generated via the VantageScore model are reduced because the credit scoring model itself and the underlying credit characteristics in the model are the same at all three CRCs.
WILL THERE NOW BE JUST ONE CONSISTENT SCORE PER CONSUMER ACROSS THE THREE CRCS?
No. While the three CRCs can now generate scores using the same underlying credit scoring model, differences in the actual scores are to be expected because each CRC maintains its own consumer credit files, which may vary. Consumers’ files at each CRC can vary because credit grantors can choose which CRC they provide consumer payment data to and the timing for when they provide that information.
DOES THE INTRODUCTION OF VANTAGESCORE MEAN THAT THE CRCS WILL NO LONGER CONTINUE TO INDEPENDENTLY DEVELOP THE PROPRIETARY CREDIT SCORES THEY HAD BEEN MARKETING IN RECENT YEARS?
Although jointly developed, the VantageScore model is marketed and sold independently by each of the CRCs. Each CRC will individually continue to make its own decision regarding proprietary credit scores.
WHAT DOES THIS MEAN FOR THE CONTINUED EXISTENCE OF THE CREDIT SCORES THAT THE THREE CRCS HAVE DEVELOPED AND MARKETED INDIVIDUALLY FOR THE PAST FEW YEARS? WILL THESE SCORES CONTINUE TO BE SOLD?
The VantageScore model provides a new and unique option to the marketplace. There will continue to be multiple scoring solutions in the market designed to meet varying business needs. The VantageScore model will compete on the merits of its consistent, predictive power and its ability to provide a score to more people.
WILL EACH CRC SELL THE SAME SCORE? WILL THERE BE ANY VARIATIONS FROM COMPANY TO COMPANY?
With the VantageScore model, the same model is used across all three CRCs. Differences in scores will occur when the underlying data content is different. Each CRC will sell VantageScore credit scores independently according to its own unique marketing strategy and positioning in the marketplace.
HOW WILL VANTAGESCORE CREDIT SCORES BE PRICED?
The VantageScore model is marketed and sold independently by each of the CRCs through individual licensing arrangements. Each CRC will set its own prices according to its individual business goals and marketplace objectives.
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