A credit score that has long been ignored by most lenders is gaining appeal.
VantageScore Solutions LLC says its credit scores were used by 16 of the 20 largest credit card issuers and nine of the largest auto lenders during the 12 months ending June. That’s up from 11 and five, respectively, two years prior. It also says that most of the largest 20 credit unions used its scores this year, up from three two years ago.
The company’s credit scores, known as VantageScore, are the brainchild of the three largest credit-reporting firms, Equifax, Experian and TransUnion. The credit bureaus launched VantageScore a decade ago in an attempt to compete against the behemoth in the credit-scoring world, Fair Isaac, better known as FICO, whose credit scores are used by most lenders when deciding whether to approve loan applicants and at what interest rate.
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