what is the purpose of a PLUS score?

[quest208]

what is the purpose of a PLUS score or VANTAGE score?

if fico is the standard, and nobody uses PLUS scores, why sell them?

lets take USAA for example.  they offer a credit monitering service with 3 plus scores.  if they wanted to approve me for a credit product, why cant they just take that same plus score and report when deciding to approve me for credit.  why would they sell me scores that they themselves dont use?

i was reading the lassuit between FICO and the CRA and was just wondering where in this country plus scores fit in.

[fused]

Why? Well, there is a fortune to be made by the CRA's. Most Americans don't know about "FAKO" scores, they just see any score and they believe its a score that all or most  lenders look at.

[quest208]

im surprised nobody has sued the cra over the plus scores.

 they all think its fico

[GregB]

Value is created by supply and demand. Increased demand can be created by marketing. There are a variety of opinions on the value of any given item.

There is very little that is misleading about the Plus Score. They are very clear that no lenders use it.

In the case of the Vantage Score, there are some lenders that use it even if there are very few. I am sure that companies providing it hope it will become more widely used. They certainly aren't going to promote it by saying that it is almost completely worthless.

Lots of people want to buy items that many people know to be worthless. It is up to each person to educate themselves and make an informed choice.

[Anonymous]

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@GregB wrote:

Value is created by supply and demand. Increased demand can be created by marketing. There are a variety of opinions on the value of any given item.

There is very little that is misleading about the Plus Score. They are very clear that no lenders use it.

In the case of the Vantage Score, there are some lenders that use it even if there are very few. I am sure that companies providing it hope it will become more widely used. They certainly aren't going to promote it by saying that it is almost completely worthless.

Lots of people want to buy items that many people know to be worthless. It is up to each person to educate themselves and make an informed choice.

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They bury that fact in the fine print.

[pizzadude]

It is MUCH more profitable for the CRAs to sell you their own scores, vantage, plus, etc.... rather than selling you a FICO score.   Fair Issac owns the FICO formulas, so a portion of the payment for FICO scores is sent to them, hence less profit for the CRAs.

[quest208]

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@GregB wrote:

Value is created by supply and demand. Increased demand can be created by marketing. There are a variety of opinions on the value of any given item.

There is very little that is misleading about the Plus Score. They are very clear that no lenders use it.

In the case of the Vantage Score, there are some lenders that use it even if there are very few. I am sure that companies providing it hope it will become more widely used. They certainly aren't going to promote it by saying that it is almost completely worthless.

Lots of people want to buy items that many people know to be worthless. It is up to each person to educate themselves and make an informed choice.

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where do they say that?

i know on their website they say, and i quote:

"CREDIT SCORES RANGE FROM 330 TO 830 AND THE HIGHER YOUR CREDIT SCORE RATING, THE LESS OF A CREDIT RISK YOU ARE."

this is not true, and leads to the confusion.  doesnt FICO score range differently...?

not only that, they say this:

"A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they give a person a loan or a credit card. Your personal credit score is built on your credit history. Credit scores range from 330 to 830. A decent credit score is essential for your financial well-being because the higher it is, the less of a credit risk you are."

how does someone know that a FICO score exists and that most lenders pull a FICO score, and not a plus or vantage score?

 same applies to Equifax.

they say "pull your score" but nobody says "its different from FICO score"

[MarineVietVet]

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@quest208 wrote:

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@GregB wrote:

Value is created by supply and demand. Increased demand can be created by marketing. There are a variety of opinions on the value of any given item.

There is very little that is misleading about the Plus Score. They are very clear that no lenders use it.

In the case of the Vantage Score, there are some lenders that use it even if there are very few. I am sure that companies providing it hope it will become more widely used. They certainly aren't going to promote it by saying that it is almost completely worthless.

Lots of people want to buy items that many people know to be worthless. It is up to each person to educate themselves and make an informed choice.

---

where do they say that?

i know on their website they say, and i quote:

"CREDIT SCORES RANGE FROM 330 TO 830 AND THE HIGHER YOUR CREDIT SCORE RATING, THE LESS OF A CREDIT RISK YOU ARE."

this is not true, and leads to the confusion.  doesnt FICO score range differently...?

not only that, they say this:

"A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they give a person a loan or a credit card. Your personal credit score is built on your credit history. Credit scores range from 330 to 830. A decent credit score is essential for your financial well-being because the higher it is, the less of a credit risk you are."

how does someone know that a FICO score exists and that most lenders pull a FICO score, and not a plus or vantage score?

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Near the bottom of the first page of the Experian website it says: Calculated on the PLUS Score model, your Experian Credit Score indicates your relative credit risk level for educational purposes and is not the score used by lenders.

From a BK years ago to: EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[GregB]

It is also on every report next to your score. I pull my EX report regularly when I expect an account to update. They are far faster than the other two CRAs at updates. This report included an account where the statement closed just 4 hours before this. It says "for educational purposes and is not the score used by lenders" followed by a link that gives you even more detail.

[Anonymous]

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@GregB wrote:

It is also on every report next to your score. I pull my EX report regularly when I expect an account to update. They are far faster than the other two CRAs at updates. This report included an account where the statement closed just 4 hours before this. It says "for educational purposes and is not the score used by lenders" followed by a link that gives you even more detail.

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I think that Experian's honesty is either recent, or better highlighted on their own site. Here's what the free Amex report and score looked like in 9/2010:

PLUS Score® Report
A PLUS Score is a numerical representation of your credit worthiness. The majority of lenders use some sort of credit scoring model to help predict what kind of credit risk you may be.

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About your PLUS Score:
Your PLUS Score is formulated using the information in your credit file. Your PLUS Score can range between 330 and 830, with a higher score indicating a lower risk. There are many scoring models used in the marketplace. The type of score used, and its associated risk levels, may vary from lender to lender. But regardless of what scoring model is used, they all have one purpose: to summarize your creditworthiness. Keep in mind that your score is just one factor used in the application process. Other factors, such as your annual salary and length of employment, may also be considered by lenders when you apply for a loan.

What your PLUS Score means:
Factors in your credit file indicate you have excellent credit. Lenders will likely offer you the best rates and terms.

What this means to you:
Credit scoring can help you understand your overall credit rating and help companies better understand how to serve you. Overall benefits of credit scoring have included faster credit approvals, reduction in human error and bias, consistency, and better terms and rates for American consumers through reduced costs and losses for lenders. While lenders may use different scoring models to determine how you score, and each major credit bureau has its own method for calculating credit scores, the scoring models have been fairly well standardized so that a score at one bureau is roughly equivalent to the same score at another.

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DISCLAIMER

The PLUS ScoreSM, developed by Experian, is not an endorsement or guarantee of your credit worthiness as seen by lenders. The different risk levels presented here are for educational use only. Your PLUS Score can help you understand what factors impact your credit score.

Please be aware that there are many scoring models used in the marketplace, and each lender´s scoring model has its own set of factors. How each lender weighs their chosen factors may vary, but the exact formula used to calculate your score is proprietary. In general, the higher your score, the better your chances are of obtaining favorable rates and terms.

Your PLUS Score was calculated using your actual data from your credit file on the day that you requested your report, making it comparable to most scoring models in the industry. Keep in mind however that other factors, such as length of employment and annual salary, are often taken into consideration by lenders when making decisions about you.

Also note that each bureau has its own set of data, resulting in a separate PLUS Score for each of your credit files.