Credit Alert by Clemon G Rogers

CREDIT ALERT
The 3 major credit bureaus, Experian, TransUnion and Equifax have announced today "that they have created a new credit scoring system aimed at simplifying the loan process for both lenders and borrowers."What is it?VantageScoreSM is an innovative consumer credit risk score offering greater consistency and predictability to consumers and credit grantors. Its patent-pending development methodologies enable institutions to rank a consumer's credit worthiness more accurately than other scores currently available in the marketplace.The VantageScore credit model was developed from a national sample of approximately 15 million anonymous consumer credit profiles pulled from across the three major credit reporting companies (five million from each source). The credit information included public record information, tradeline data, and inquiries. What VantageScore Says We Can Expect Consistent - Identical scoring algorithm and leveled credit characteristics across all three national credit reporting companies offer greater consistency Accurate - Deep knowledge of the data ensuring the most accurate scoring algorithm attainable Innovative - Patent-pending applications of statistical modeling techniques enabling enhanced predictiveness ensuring that consumers will receive more appropriate credit terms It's easy to understand and apply This is great news but keep it mind that although the three major bureaus have struck an agreement to all use the same tool, VantageScore, the actual implementation of this agreement is still somewhere in the future. It will take plenty of time to put the plan into action, especially since it involves the credit bureaus necessity to license this program to all of the purchasers of their data.Additionally, while the system will undergo a major overhaul to the benefit of everyone, a credit score is still a credit score. No simplification of the scoring formula will enhance your clients' credit management. As a result, the basics of credit management that I have been teaching my referral partners and clients are still very much in place and as important as ever.As your credit improvement and education resource, I will remain ever vigilant to this, and all developments that impact your ability to achieve and maintain the best credit score so you can live your financial dreams.