pizzadude wrote:
It's a risk thing. Companies have used FICO scores as the basis for evaluating borrorowers for many years, and have built their business models around this, based on it being a **somewhat** stable system of predictive behaviour of consumers.
The vast majority of FAKO scores have no such track record, and as such, lenders are not motivated to switch.
Yep. And FICO scores have been historically used to evaluate securitized mortgage instruments and even things like the quality of assets banks carry on the books. So FICO isn't just an important part of deciding whether to extend consumer credit but indirectly it can affect even a bank's creditworthiness. Even if VantageScore could prove that it was every bit as predictive as FICO the costs of conversion and associated risks dictate against it.
In the business world these attributes are called "barriers to entry" and is what allows businesses to maintain an edge. At least to a point. Competition will take over if a score proves substantially more predictive and/or substantially cheaper but even then it still takes time. And Fair Isaac continues to refine its scores.
I have reestablished credit over the last couple years
Just to give you an idea of how far off the Vantage and the TransRisk scores can be.............
My TU FICO is 799
My Vantage score is 889
My TransRisk score is 771
I pay no attention to any score other than FICO.
I use CMS to monitor my reports and that's it.
EDIT to add: FreeCreditReport.com gave me a free three bureau score and report because I was unable to log into my FCR.com account the other day.
EX Plus score 774
EQ Plus score 776
TU Plus score 776
Just another example of why you should not pay attention to any scores other than FICO's
Starting Score: 583
Mustanglvr2006 wrote:Just to give you an idea of how far off the Vantage and the TransRisk scores can be.............
My TU FICO is 799
My Vantage score is 889
My TransRisk score is 771
I pay no attention to any score other than FICO.
I use CMS to monitor my reports and that's it.
EDIT to add: FreeCreditReport.com gave me a free three bureau score and report because I was unable to log into my FCR.com account the other day.
EX Plus score 774
EQ Plus score 776
TU Plus score 776
Just another example of why you should not pay attention to any scores other than FICO's
Your VantageScore and FICO are actually pretty close. You can't compare the numbers since the ranges are different. To compare scores you have to compare where you are on the rank order histograms. Based on my knowledge of the different scoring distributions your scores, when normalized to rank order are closer than most. Needless to say, this isn't that easy but here's more info (see method 3)
http://www.vantagescore.com/research/achievingsame
That said, your scores are closer to each other than mine were last year. I had a tax lien that dropped my FICO to around 707 which is about the 45% rank ordering position. Vantage Score, OTOH, had me at about 900, the 90% when rank ordered. ScorePlus was around 98% rank ordered. So even using rank ordering to compare scores stiil produced a wide variance from FICO. The difference was the way the paid tax lien was factored in. After the lien was removed my scores are still different but much closer.
And few lenders use VantageScore and no one uses ScorePlus or most of the other generic scores sold only to consumers.
cashnocredit wrote:
Mustanglvr2006 wrote:Just to give you an idea of how far off the Vantage and the TransRisk scores can be.............
My TU FICO is 799
My Vantage score is 889
My TransRisk score is 771
I pay no attention to any score other than FICO.
I use CMS to monitor my reports and that's it.
EDIT to add: FreeCreditReport.com gave me a free three bureau score and report because I was unable to log into my FCR.com account the other day.
EX Plus score 774
EQ Plus score 776
TU Plus score 776
Just another example of why you should not pay attention to any scores other than FICO's
Your VantageScore and FICO are actually pretty close. You can't compare the numbers since the ranges are different. To compare scores you have to compare where you are on the rank order histograms. Based on my knowledge of the different scoring distributions your scores, when normalized to rank order are closer than most. Needless to say, this isn't that easy but here's more info (see method 3)
http://www.vantagescore.com/research/achievingsame
risk/
That said, your scores are closer to each other than mine were last year. I had a tax lien that dropped my FICO to around 707 which is about the 45% rank ordering position. Vantage Score, OTOH, had me at about 900, the 90% when rank ordered. ScorePlus was around 98% rank ordered. So even using rank ordering to compare scores stiil produced a wide variance from FICO. The difference was the way the paid tax lien was factored in. After the lien was removed my scores are still different but much closer.
And few lenders use VantageScore and no one uses ScorePlus or most of the other generic scores sold only to consumers.
Thank you for the link, I will look into it.
I also would like to thank you for your detailed reply, I greatly appreciate it.
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