U.S. challenger bank Chime, now valued at $5.8 billion, is entering the credit card market with today’s launch of a new card designed to help consumers build their credit history by way of everyday transactions. With the Chime Credit Builder Visa Credit Card, users can control how much they want to spend by transferring funds […] …Continue Reading

Updated Tue, Jan 7 2020 By Alexandria White Credit scores range from 300 to 850. Those three digits might seem arbitrary, but they matter — a lot. A good credit score is key to qualifying for the best credit cards, mortgages and competitive loan rates. When you apply for credit, the lender will review your credit report to determine your eligibility based on this information, which includes that three-digit number known as your credit score. That magic number tells lenders your potential credit risk and ability to repay loans. Credit scores consider various factors, such as payment history and length of credit history from your current…Continue Reading

By Paul Centopani, Kate Berry VantageScore totaled 12.3 billion scores across consumer credit loan categories over a 12-month period between 2018 and 2019, according to a report from consulting firm Oliver Wyman. That figure increased 20% over the same period from the year prior — a rate of annual growth the credit score developer exhibited since 2015. The consumer loan categories included auto, credit card and personal, but not mortgages, giving it a potential to ramp up its use.  ”Having compiled this report for the third year in a row, we see impressive gains in market usage of VantageScore credit…Continue Reading

The “Credit-Score Game” is now live on the Wall Street Journal Online. Gain insight and awareness from the 7-question game on how credit score models account for credit behaviors. Choose a score profile and see how different actions, such as missing a payment, can affect your credit score and by how many points. VantageScore’s data scientists partnered with the Journal’s digital team to develop this interactive game based on VantageScore 3.0 data. A visual of the game is shown below – click on the image itself or click here to play the game. …Continue Reading

JOURNAL REPORTS: WEALTH MANAGEMENT People think they know what causes a credit score to rise or fall. They’re often wrong. By Demetria Gallegos  Everybody wants to have the highest credit score possible. But most people have little idea how to go about getting it. In fact, the opposite is often true: The things that many people believe will help or hurt their score don’t actually help or hurt them at all. Telling fact from myth, though, is crucial, as consumers strive to do what they can to improve their credit score. A higher score can mean better terms on credit cards,…Continue Reading

What Does Creditworthiness Mean? Your credit score only tells part of the story as lenders judge how likely you are to repay debt. US News & World Report/CreditCards.com By Dawn Papandrea Credit worthiness attempts to measure your financial integrity and can determine how potential lenders perceive you. (Getty Images) Creditworthiness, or how likely you are to repay a debt, is a major factor in whether you’ll be approved for a credit card, an auto loan or a mortgage. It accounts for your debt, your credit history and your ability to pay back loans. Although each lender has its own way…Continue Reading

This three-digit number shapes your life in ways you probably don’t realize. VantageScore is a credit scoring model that lenders use to assess your financial responsibility. It’s essentially a grade, ranging from 300 to 850, with a higher number indicating a greater degree of financial responsibility. A good VantageScore increases your odds of credit card and loan approval and helps you secure lower interest rates. A bad score could bar you from securing financing when you need it. But what’s a good VantageScore and how do you know if you have one?  What is a VantageScore? VantageScore is a credit…Continue Reading

Debunking a credit score myth: Forget what you’ve heard. Use much less than 30% of your available credit card limit Washington Post.com Michelle Singletary People like benchmarks, because it helps when they’re trying to reach a goal. For instance, when I talk about saving for retirement, folks want to know how much should they save every year or what percentage of their income should be invested. For the answer to that question read: Want to be a 401(k) millionaire? Here’s what it takes. One of the most frequently asked questions I get is this: How can I improve my credit…Continue Reading

By Sarah O’Brien@SARAHTGOBRIEN         KEY POINTS The two most familiar brands in the credit-scoring world, FICO and VantageScore, use different algorithms to arrive at your score. One mortgage applicant discovered a difference of more than 40 points between his scores from those two models. Consumers often see the biggest discrepancy when they apply for a mortgage, experts say.   Earlier this year, pharmacy technician Curtis Webb thought his credit score was high enough to help him snag good terms on a mortgage. “It was close to 730. I thought it…Continue Reading

8 Things That Won’t Hurt (Whew!) Your Credit By Bev O’Shea, 9/3/19 Pay a credit card a month late, and you can count on it hurting your credit score. But there are some murkier areas you may wonder about: What happens if Pay a credit card a month late, and you can count on it hurting your credit score. But there are some murkier areas you may wonder about: What happens if I marry someone whose credit is a lot worse than mine? Could my library fine from five years ago keep me from getting approved for a car loan?…Continue Reading

On Tuesday (8/12/19) the Federal Housing Finance Agency (FHFA) promulgated a final rule which addresses credit score competition in the mortgage market. The new rule permits all model developers to participate in an application process whereby new credit score models will be assessed by Fannie Mae and Freddie Mac across a number of different parameters such as predictiveness, inclusivity and other potential markers. On Thursday (8/22/19),CNBC interviewed VantageScore President and CEO Barrett Burns regarding the FHFA’s reversal of its previously unfavorable (to VantageScore) rule on credit score competition for Fannie and Freddie Mac.     Watch CNBC Live:  …Continue Reading

By Andrew Ackerman Aug. 13, 2019 2:02 pm ET (WALL STREET JOURNAL ONLINE VERSION) WASHINGTON—One firm’s dominance over the credit scores used to vet many U.S. mortgages is getting a shake-up. Fannie Mae FNMA +3.56% and Freddie Mac , two mortgage-finance firms that back nearly half of U.S. mortgages, will have to consider credit-score alternatives to Fair Isaac Corp.FICO -1.65% ’s FICO score when determining a mortgage applicant’s creditworthiness, under a new rule completed on Tuesday by the mortgage-finance giants’ federal overseer. The move by the Federal Housing Finance Agency is seen as a win for VantageScore, a credit-score system by VantageScore Solutions LLC, which is owned by the three large credit-reporting…Continue Reading

LISTEN TO THE NPR STORY HERE. A new rule from the Federal Housing Finance Agency – which oversees Fannie Mae and Freddie Mac – is requiring those two mortgage financing companies to consider alternatives to FICO when figuring out if borrowers qualify for a loan and at what rate. The idea being that this may help some borrowers to qualify who might not otherwise. In particular, it could mean more use of a FICO competitor – called VantageScore – which uses slightly different criteria and tries to assess creditworthiness of people who may have more limited credit histories….Continue Reading

JoAnn Merrigan SAVANNAH, Ga. (WSAV) – It may be one of the most important numbers that impacts you: your credit score. Many still do not understand what that score means for their finances. A new survey shows consumer knowledge about credit scores has dropped in the last eight years as the economy has improved. Some people may have more disposable income but your credit score still affects you in big and small ways. Even if you think you have plenty of credit, that credit score is a big deal. It affects big purchases like a house or car loan but…Continue Reading

Consumers Can Increase Their Credit Score Knowledge by Taking the Credit Score Quiz (CreditScoreQuiz.org) Washington, D.C. – The ninth annual credit score survey, released today by the Consumer Federation of America (CFA) and VantageScore Solutions, LLC, shows that consumer knowledge about credit scores is at the lowest level in the past eight years. On most knowledge questions (as the enclosed table and charts show), correct scores declined by more than ten percentage points, and sometimes by more than 20 percentage points.  For example: 78% of respondents in 2012, but only 62% in 2019, correctly indicated that people have more…Continue Reading

Marketplace (American Public Media)Amy ScottAUDIO: https://www.marketplace.org/2019/04/30/economy/strong-economy-creating-credit-score-inflation You’ve heard of grade inflation, right? The theory that as teachers have handed out more and more A’s over the years, the grade just doesn’t mean what it used to. Now some analysts are worried about what they’re calling “credit score inflation.” According to Moody’s Analytics, there are about 15 million more people with a FICO score above 740 today than there were before the Great Recession. A 740 FICO score is considered very good. Borrowers who score that high typically qualify for better terms from lenders, such as lower interest rates. At last…Continue Reading

Published February 05 2019, 11:00am EST Young consumers lack the data to support traditional credit scoring, but there’s plenty of payments information that can fill the gap. Alternative data such as rent, utility and telecom payments where the volume of reporting is improving may provide solutions to better assessing millennial credit risk as well. A lender’s own proprietary information can also help bridge the gap. This is just one example of how millennials and their powerful market potential could reshape the consumer credit landscape. To keep pace and grow their businesses, lenders must evaluate their strategies and the models these…Continue Reading

VantageScore study shows that outdated conventional scoring models lead to an increase in marginalized consumers facing unfair hardships when applying for credit VantageScore® Solutions, LLC, the company behind the VantageScore credit scoring models, released the results of an analysis that shows that the population of consumers who are conventionally unscoreable (i.e., those that fail to meet the minimum scoring requirements of widely used conventional credit scoring models) has grown from approximately 30-35 million in 2010 to approximately 40 million in 2018. Through no fault of their own, these consumers would fail to meet the requirements for automated underwriting processes widely…Continue Reading

The Washington Post By Michelle Singletary Lenders are offering a wide variety of help to workers impacted by the partial government shutdown, but one type of assistance in particular can save your credit rating. I’ve heard from some readers who fear that their credit scores will drop if they miss a loan payment due to not getting their paychecks. And they aren’t being paranoid. Your credit score is used as part of the lending process to determine how much of a credit risk you might be. The higher your score, the better borrower you are considered to be. The biggest…Continue Reading

InmanNews.com, by Lew Sichelman This generation has similar income and asset levels as most homebuyers, but they think about carrying credit differently, according to VantageScore Solutions’ latest study Because millennials don’t look at credit the same way generations before them did, lenders — and by association, if nothing else, real estate agents — are missing out on thousands of mortgage fees and sales commissions. According to the latest study by data scientists at VantageScore Solutions, a scoring model still struggling to gain acceptance by the federal agency that regulates the two secondary mortgage giants Fannie Mae and Freddie Mac, millennials…Continue Reading