Credit-score game :VantageScore gears up to knock out Fair Isaac

For the banking professionals,credit-card companys,auto lenders,mortgage outfit and the respective clientele till now lost in the plethora of credit figures provided by the sector’ credit-reporting companies the world seems to be much more simpler now.With the trade’ chief credit-reporting mammoths Equifax,Experian and TransUnion collaborated effort- VantageScore,a newborn credit scoring schema ranging from a sterling 990 down to a bankrupt 501 the change will cut down on the differences between the scores by 30%.

The VantageScore hearted on raw data of millions of people follows a standard way to categorizing borrowers, as well as to create standard recipe to determine creditworthiness The bureaus won't share data. Instead, each will use the recipe on its own data to produce a credit score.
The difference and the drawback here lays in the missing or inaccurate information raw data for which the infant score system has no solution.As said Stephen Brobeck, executive director of the Consumer Federation of America, said the new score will create problems"It's a terrible idea. At a time when consumers are just beginning to understand the traditional credit score scale, to change it radically will greatly increase consumer confusion." However the Vintage’ bureaus hope that lenders will see that this new score does such a good job of showing which consumers are good risks and which ones not so good that they'll buy this one instead.
The scoring business till now had Fair Isaac's FICO as the most accredited bureau with FICO scores range from 850 to 300 where as the rival three bureaus offered their homegrown credit scores for sale to lenders and directly to consumers.Commenting on the upcoming of latest rivals in the reign Fair Isaac Chief Executive Tom Grudnowski said in an interview that FICO scores are deeply embedded in the way lenders evaluate loan applications. The biggest challenge for the credit bureaus, he says, will be to prove that their score is so much better that it justifies ripping up the way they do things now.
Meanwhile the Federal Trade Commission and justice dept. till now are holding silence on the issue of the VantageScore’ advent as a move to raise prices and muffle antagonism.Fair Isaac shares fell nearly 7% on the news of the competing system.