topic Re: Why is VantageScore such a terrible system? in General Credit Topics

Why is VantageScore such a terrible system?

Anonymous — Wed, 20 Jan 2021 06:08:15 GMT

My credit utilization on one of my credit cards went from 91% down to 26% and it dropped my Vantage Score by 31 points. What is this? Why did this happen? Although my FICO went up by 17 points, shouldn't Vantage have also significantly gone up?

Re: Why is VantageScore such a terrible system?

FalconSteve — Wed, 20 Jan 2021 07:21:47 GMT

Even for Vantage, that seems really odd. Did they lower your credit limit (balance chase)? Did anything else change?

I would pull my credit reports to check for an error to be safe

annualcreditreport.com has the truly free reports (available weekly because of the pandemic, instead of yearly)

Re: Why is VantageScore such a terrible system?

MasonK — Wed, 20 Jan 2021 14:12:58 GMT

I see alot of correlation between VS3 and FICO9 so I'm interested in seeing my next 9 score after today.

I had been carrying a 30%+ utilization of about $4k on my CFU card due to 0% APR on a large purchase. I paid it down to just over 1% of the card limit and my TU VS3 went from 771 to 754. No other events would have triggered a drop since it has been rising from about 750 to 771 over the last 6 months that I was carrying that huge balance.

VS3 must consider utilization very differently and the 1% is not optimal for that model.

Re: Why is VantageScore such a terrible system?

Anonymous — Wed, 20 Jan 2021 14:15:15 GMT

No. Nothing else changed. Its funny. Another credit card increased by $5 and I opened a new account and my score went up 30 points. But now that a different card dropped by $230 to a utilization of 26% it went down by 31 points.

Re: Why is VantageScore such a terrible system?

Anonymous — Wed, 20 Jan 2021 17:36:08 GMT

People have been reporting wonky VS score swings both up and down that can't be explained or don't seem to make sense based on the report data changes for probably a decade now. I don't see it changing any time soon. My best advice would be to simply ignore it and focus on your Fico scores which are far more meaningful.