http://www.vantagescore.com/businessinfo.html
My take on this shift to a new VantageScore system is ...
- it creates standardized formula for calculating credit rating which all of the credit rating agencies will share (which probably will work against self-employed persons because the formulas don't allow for inclusion of individual factors)
- it is based on a 24 month payment history (which can be good or bad compared to the current system, depending on the fine print)
- is intended to reduce 'manual review' of new loan applicants' credit histories by bank / financial institution personnel with personal factors taken into consideration, versus automatic X credit score needed for approval or automatic X disapproved, Y approved at high interest rate, Z approved at low interest rate (which probably will also work against self-employed persons)
- the timing is probably directly related to expectations in the banking industry that the credit ratings of many Americans are likely to undergo major changes very soon.
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