VantageScore is a consumer credit-scoring system in the United States, created through a joint venture of the three major credit bureaus (Equifax, Experian, and TransUnion).
The model is managed and maintained by an independent company, VantageScore Solutions, LLC, that was formed in 2006 and is jointly owned by the three bureaus.
[5] The development of VantageScore was also driven by a desire to: Create a model that could adapt more quickly to changes in consumer credit behavior and economic conditions.
The original VantageScore model, introduced in 2006, used a scale range of 501 to 990 and assigned letter grades to various score bands.
According to TransUnion, the letter grades corresponded to the following score ranges: VantageScore 3.0, released in 2013, marked a significant change by adopting a scale of 300 to 850.
This change aligned VantageScore with the scale range used by FICO models, making it easier for consumers to understand and for lenders to implement.
Introduction of trended data analysis, examining a consumer's credit utilization rates over time rather than just the most recent billing cycle.
As the credit scoring landscape continues to evolve, VantageScore is likely to face both opportunities and challenges: Increased competition with FICO, particularly in the mortgage lending sector.