I learned very early on that vantage is effectively useless, they are extremely volatile, almost no lenders use them. Yet somehow they own almost all of the market for credit card companies that offer free scores with their product. That's no surprise because VS is crazy cheap, to buy a new 3B report from FICO is like 50 bucks, and to get a 3B report from vantage is $9.99.
don't get me wrong credit karma itself can be useful for monitoring things and seeing changes. But how is it possible that so many people use these scores. Most people don't even know what the difference between FICO and VS is.
I almost think all high schools should offer a class for learning about credit. It could save people a lot of trouble.
b/c VantageScore sounds legit and people are gullible. I can't tell you a single lender that uses VS, but if the credit uneducated see the score ranges from 300-850, then by golly *that's my score*.
It goes back to why public schools don't offer objectively good classes on public policy, government, and financial behavior, because the less educated the populous is about those, the less is taken away from those in power (politicians, FIs, etc.).
It's in the big FI's interest (pun not intended) to have customers that are credit gullible because they'll overspend and the FI will gain money off of them via a carried balance.
My parallel to your last sentence is that high schools should offer a longer course on $$ pertaining to a lot of things: auto-buying/lending, mortgages, credit (of all types), CUs vs banks, live on < than you make, among other things. I've got a lot more criticism for public secondary schools and the state/Federal requirements b/c 4 yrs of school, 5 days of week can teach a lot...yet graduate's walk knowing little useful to real world situations. For the amount of relevant stuff taught at the high-school level, classes should be held for no more than 3 days a week...but I digress.
It goes back to why public schools don't offer objectively good classes on public policy, government, and financial behavior, because the less educated the populous is about those, the less is taken away from those in power (politicians, FIs, etc.).
It's in the big FI's interest (pun not intended) to have customers that are credit gullible because they'll overspend and the FI will gain money off of them via a carried balance.
My parallel to your last sentence is that high schools should offer a longer course on $$ pertaining to a lot of things: auto-buying/lending, mortgages, credit (of all types), CUs vs banks, live on < than you make, among other things. I've got a lot more criticism for public secondary schools and the state/Federal requirements b/c 4 yrs of school, 5 days of week can teach a lot...yet graduate's walk knowing little useful to real world situations. For the amount of relevant stuff taught at the high-school level, classes should be held for no more than 3 days a week...but I digress.
Exactly my point,
in high school I remember one time In one of my classes we had to take a computer test where they gave you a blank map, and you had to drag and drop the correct country into the correct spot on the map. Can that make you appear very knowledgeable about geography and impress a co worker or to at a party? Maybe?
does it have any real world application for 99.9% of people? No.
More than that, more and more schools have stopped teaching sex ed, because parents don't like it. I mean work at a place in which I deal with kids in the 15-22 year old age group and I have literally met kids who think you can't get pregnant if you pull out....
I actually can't think of 1 thing I learned in school that has any real world use in my life today, except maybe Spanish? In which I've retained little anyways.
Could school work if they made you choose a career early on and then only taught you stuff that pertained to that career( similar to choosing a major) yes, but that would never work. People would want to change their career choice just like kids change their major multiple times and come of out college with a bit of knowledge on 4 different things, but mastering none of them. And that is why I think college is one of the worlds biggest scams. Society tells me that I can't be a therapist unless I spend a ton of money getting a degree, yet I have over 10 years of experience helping people with all sorts of issues. But that doesn't count? I even have co workers and friends come to me instead of their actual therapist, because they say I help more than any "real" therapist they have ever had.
in any case I don't want to make this thread into a knock on the school system, it was meant to be about vantage score and why the vast majority of adults have no idea what that scene means.
they go to a dealership and the dealer says you credit score is 650, and they say " but credit karma says it's 720?" Then they wonder why they can't buy a car.
While VS 3.0 is barely used by lenders (there's a VERY small number of local banks and CUs that use it, and a few other lenders give it a look but it's not a signifcant factor), VS 4.0 is looking like it will have more widespread usage in the future. Along with FICO 10T, VS 4.0 was approved by the FHA to replace the currently used FICO 5, 4, 2 scores for mortage usage. Curently there aren't a lot of lenders that use VS 4.0, but it's used moreso than VS 3.0. Synchrony is the most well known of lenders using VS 4.0 and like FICO 10T it considers trended data.
In terms of companies using vs4/10T for applications, do you see vs4 getting any sort of decent mark share over the next 5 years?
what about FICO 10/10T?
i Think anything over 10% for either would be impressive. I think fico currently has well over 90% of the market. Of that 90%, fico 8 seems to be the most widely used.
I don't know what that actual percentages are. But I would guess 60% of issuers that use FICO for applicants use FICO 8, and the other 40% would be split between FICO 9,10,10T, 3,4, and 5., (again, speaking in terms of companies that pull them when applicants apply). If anyone knows the actual percentages I would be very curious to know.
if we are talking about the % companies that give our vantage score for their "free monthly credit score". VS has the larger piece of the market.
I really hope vs4 never gets any decent market share, there's a lot of things I don't like about it.
for example: they ding you for how much available credit you have. So people with lower limits get their scores dinged even if their util ratio is very good.And it's especially bad if you have high util because then you get hit for high util and you get hit for not having much available credit left.
They also don't factor in closed accounts into their age metrics.
