VantageScore is a consumer credit scoring system developed by the three major credit bureaus in the United States. VantageScore Solutions, LLC, founded in 2006, manages the model. Since 2006, VantageScore has been owned by all three bureaus. It is an anonymous and free service that allows consumers to assess their creditworthiness.
VantageScore 3.0
VantageScore 3.0 is a credit scoring model that differs from FICO. While VantageScore 3.0 is different than FICO in some respects, the basic principles of credit scoring remain the same. These principles include paying all your bills on-time, limiting new credit, keeping your credit utilization low, and not allowing you to open any new accounts. These strategies will help you improve credit scores.
Paying history is the most important factor in VantageScore3.0 credit scores. This is often expressed in percentages. Late payments or missed payments can have a significant impact on your credit score. Lenders would like to see proof that you have used credit responsibly for a long time.
Credit mix
A credit mix score is a credit score that is based on several factors. The most important factor is your payment history. The calculation also considers the length of credit accounts you have held. A second factor is your credit mix, which includes installments and flexible credit lines. Your credit score will improve if you have a healthy credit mix.
The credit mix factor accounts for 10% of a consumer's FICO score. This factor considers several credit accounts, including lines of credit cards. It then combines them to give the VantageScore. A healthy credit mix includes both revolving and installment accounts.
Credit utilization
A credit score can be affected by many factors, including the amount of credit card debt you have. Some lenders will allow you to have several credit cards, which can lower your utilization ratio. Age of your credit line is another important factor. Too many credit cards can make managing your spending difficult. It can also damage your credit score to add new lines.
When it comes to credit utilization, it's important to know the difference between total and per-card usage. Per-card utilization is the percentage of available credit compared to the total balance on each card. Total utilization refers to how much credit you're using in relation to the amount you have. Your credit score will rise if your total utilization is lower than your available credit.
Public records
Public credit reports can have a negative impact on credit scores. They are usually considered a very negative event that will lower a person's credit score significantly. But public records are not all that credit reports can include. Public records can also include judgments or tax liens. Bankruptcy refers to a person who has failed to pay his or her credit obligations.