Major Credit Agencies Adopt Uniform Score to Simplify Loan Process
The three major consumer credit reporting agencies, Equifax, Experian and TransUnion, announced Tuesday that they have created a new credit scoring system, "VantageScore", aimed at simplifying the loan process for both lenders and borrowers. The agencies in the past each used their own proprietary formulas to create their own scores, meaning that a lender dealing with a consumer's application for a credit card or a mortgage might have to reconcile three widely different scores. With the new system, a single methodology will be used to create the scores.
The scores will range from 501 to 990, and will be grouped on "the familiar academic scale." Experian gave these groupings:
A -- 901-990
B -- 801-900
C -- 701-800
D -- 601-700
F -- 501-600
It said the new scores would be available immediately.
Yahoo! Finance has the full story.