NEW KIND OF CREDIT SCORE
The three credit bureaus have announced the creation of a new kind of credit score, which they say will simplify the process. The bureaus say there are two variables in calculating a credit score: the data (your credit history as reported by each bureau) and the scoring methodology (the math used to calculate your score). In what the bureaus say is an attempt to make credit scoring easier to understand and more consistent, they've created a new credit score, called VantageScore. To calculate the score, which can range from 501 to 990 (the higher the score, the better), the bureaus each use the same methodology. For example, each bureau collects credit information independently, so it is possible that the exact same information may not be on all three files. With other scores, the bureaus say even if the same information is in your files, your credit score could be different because of the different calculations used. They say with VantageScore, if the same information were on each file, the scores would be identical all because they'll use the same calculations to get your credit score.
The bureaus say consumers who have a short credit history often end up with low scores under other credit-scoring models. They say VantageScore will give "more predictive scores" on consumers with limited credit histories, which would reduce the need for creditors to go through a manual review process and impose their own personal methodology to determine credit worthiness.
Because VantageScore is so new, at this time of this posting the pricing for these scores, which will be sold separately by each credit bureau, was not available. The average VantageScore was not yet available either. But if lenders start using these new credit scores as they currently use FICO scores, you should be able to find the prices at each of the three credit bureaus both online and via telephone.