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New credit score adopted today
Reuters reports that Equifax, Experian and TransUnion have adopted a new scoring system designed to be more intuitive. In US credit agencies adopt common reporting score it is said that the new “VantageScore” will range from 501 to 990, whereas the current “FICO” scores range from 350 to 850.
For consumers, it will create some confusion,” said Greg McBride, senior financial analyst at Bankrate.com, a provider of financial data and advice. “Saying you have a credit score of 750, for example, takes on a whole new meaning. It was a good score on the old system but is only fair in the new one.”
Experian and TransUnion said lenders and borrowers may interpret the new scores as though they were grades awarded in school.
A 901-990 score will be considered an “A,” for example. “B” would equate to an 801-900 score, “C” to 701-800, “D” to 601-700, and “F” to 501-600.
There will, of course, still be differences in the scores reported by each company because each credit file usually has different information.
