I don't have an answer to your question. I never bothered figuring out the VantageScore algorithm because the majority of lenders use some version of FICO.
For your reading pleasure from Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20
It's actually a lot different. Vantagescore seems to only factor in open accounts, and it's VERY sensitive to balance changes. I honestly wouldn't worry too much about why. It's an almost meaningless score, as very few, if any, lenders use them.
My vantage scores are in the upper 670s while my FICOs hover around 580. Go figure.
@Anonymous wrote:For some background, In 2016 I defaulted on all of my open accounts but one (12-14 accounts closed) after losing my job and I've since settled and/or paid $10,000 in collections and re-established a couple of revolving tradelines. My credit report now shows zero collections, zero revolving balance, only debt remaining is $16k in student loans that are still in deferment because I haven't graduated yet.
So I'm aware that VantageScore model is a bit different from the FICO8 model, but most people I talk to have FICO8 scores that are actually higher than their VantageScore. Or at least relatively close. Mine is the opposite.
Current VantageScore from CK: 680-687
Current EX FICO8: 618
It's been this way since I started tracking both over a year ago. FICO is always MUCH lower. I really don't understand it at all. Any insight would be appreciated.
If I'm reading this correctly, you have no revolvers open? Or is it no revolving balance? Either way you are leaving points on the table with FICO. You should be seeing a negative reason code on Experian. Something like, you show no use of revolving credit. Look up AZEO and try to implement that. That should give you some points in FICO. Also, how many revolvers do you have? Ideally you want 3 revolvers and a loan reporting.
Goal Scores: 700 across all three
If all of your charge offs/ collections are paid, they should be reporting 0 balances. They should not be affecting your utilization. How long ago did you pay them off.
@Anonymous wrote:I have five revolving accounts open totaling $2,750 in available credit, all with current zero balances, plus my federal student loans in enrolled deferment totaling 16k.
Experian shows four detractors (in order): 6 serious delinquencies, showing my ratio of revolving balances to credit limits at 60%, bad payment history on 6 accounts, and a detractor because I haven't paid anything on my student loans yet.
All of the accounts with delinquencies or balances have been closed and/or paid, and yet, FICO is still taking those into account it seems. My true credit usage is zero. Is there anything I can do about this at all, or am I just at the mercy of time and allow the 7-year clock to continue ticking?
It counts COd accounts only if they have outstanding balances. If they're closed and showing zero balance, they still hurt because they're derogs and will remain the full 7 years, but the sting lessens over time after they're paid off. I second the poster above, are those derogs reflecting zero balance? If so, their utilization shouldn't be counting against you anymore.
Also, as mentioned above, you can't have all open revolvers showing zero balance. You incur a FICO scoring penalty that way for showing no credit use. You must let 1 report a small, <8.9% balance and the others report zero. Note reporting isn't the same as carrying a balance. Reporting means just let the statement cut with a small balance and then pay in full immediately after statement cut.