A key distinction between VantageScore and competing developers is the fact that VantageScore credit scoring models operate identically on data from all three national credit reporting companies (CRCs—Equifax, Experian and TransUnion). Competing developers tailor their models to each CRC’s database, an approach that introduces an inherent degree of inconsistency to the scoring process. The result is an unclear determination of risk.
VantageScore employs a single, uniform model and a patented characteristic leveling process to treat pieces of data from each CRC the same. That means less variation in scores pulled simultaneously from multiple CRCs. It also means those variations can be chalked up to differences in credit-file content, rather than the scoring process itself. Importantly, VantageScore credit scores can be pulled and used independently, i.e., it is not a “tri-merge” report.
To yield consistent and equitable attribute definitions across multiple sources of information, the VantageScore 3.0 model uses a patented characteristic leveling process. Simply put, this ensures that when the same data is present in multiple sources — at least two CRCs — it is interpreted the same way, even though there may be differences in how the data is defined.
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