A credit score is a number derived through statistical means that predicts the likelihood of
whether or not a consumer will have serious delinquencies (90 days late or greater) on a credit
account in the future. It is generated from a variety of credit history-related elements, such as
a person's history of payment punctuality, the total amount of available credit, the total amount
and type of debt, the number of open and active accounts, and the longevity of relationships with
creditors. Banks, credit card companies, and other lenders use credit scores to assess a
borrower's loan eligibility and set loan/credit terms.
• • How can I determine whether the information used to generate my score is
accurate?
The Fair Credit Reporting Act grants consumers the right to a free copy of their credit report
once a year from each of the three national credit reporting companies. VantageScore Solutions
encourages consumers to review the information in their credit files on a regular basis.
• • How do I get a copy of my credit report?
Consumers can obtain a free copy of their credit reports once a year from each of the three
national credit reporting companies at annualcreditreport.com or by calling
1-877-322-8228.
• • Who should I contact if there are errors on my credit report?
Each of the three major credit reporting companies (CRCs) - Equifax, Experian, TransUnion, has a
system in place for addressing errors contained in consumer credit files. Consumers should
contact the CRC that provided the report in question.
It is important to note that there are many credit scoring models available to lenders on the
market, all of which generate unique consumer scores. Each of the three CRCs makes scores
available for a fee.
• • Why do I have more than one credit score?
The primary reason that consumers do not have one universal credit score is that there is more
than one credit scoring model on the market being used by lenders and the three CRCs. Simply put,
different models have different scoring criteria, which ultimately generate different results.
Also, the consumer credit data maintained at each of the three CRCs is not the same due, in part,
to the fact that not all lenders report information to all three and if they do, information may
not be reported at the same time to all three. Since credit scores are based on the information
in your credit file, your score may vary from each. VantageScore will minimize score variance
because the underlying scoring model itself is consistent across the three CRCs.
• • How can consumers obtain their VantageScore results?
Consumers interested in obtaining their VantageScore should contact the CRCs directly for additional information:
A consumer's VantageScore is derived from a mathematical formula that evaluates a
multitude of credit-related characteristics. Among these characteristics are:
Payment history Have you consistently paid your accounts in a timely manner?
Depth of credit How long is your credit history and is there a varied mix of credit types?
Recent credit How many recently opened credit accounts and credit inquiries do you have?
Available credit What is the total amount of credit that you currently have access to?
Balances What is the total of your current and delinquent account balances?
Utilization How much of the total credit available to you are currently using?
• • How do I interpret my VantageScore?
The VantageScore scale is a three digit numerical value that
ranges between 501 and 990. Consumers with a higher
VantageScore indicate a lower likelihood of risk to lenders.
• • What can I do to improve my VantageScore?
Improving your credit score can be achieved over time by
regularly practicing these sound financial management
techniques:
Pay your bills on time.
Apply for credit only when it's needed; do not open new accounts frequently or open multiple accounts within a short time span.
Keep your outstanding balances low - a good rule of thumb is not to exceed 30% of your available credit limit with each account.
Pay any delinquent accounts as soon as possible and then keep them current.
• •Will requesting a copy of my credit report impact my VantageScore?
No, requesting copies of your credit reports will not impact your VantageScore.
• • Do other parties' inquiries impact my VantageScore?
Other parties' inquiries can have a potential impact, but are generally not significant,
particularly in the case of a consumer with a strong credit history. Inquiries that are not
related to new debt requests (such as those for employment purposes) or were not
consumer-initiated (such as a lender looking to make a preapproved credit offer) have no adverse
impact on an individual's VantageScore.