Home > Personal Finance > This Week in Credit News: The New VantageScore 3.0

Comments 1 Comment

Credit NewsThe biggest news this week is all about the announcement from VantageScore Solutions that its newest version of its signature credit score would include some very consumer-friendly updates.

Did Credit Scores Just Get Fairer?

As one of the first news organizations to report that VantageScore would be releasing the new version of its brand-name credit score, we took a look first at how the new credit scoring model might impact the industry.

Currently, the FICO score is known as the dominant credit score used by lenders. Vantage is hoping to change that by creating a new model that improves predictability by up to 25% for lenders, according to the company. The new score mirrors the current FICO credit score range, but has several important changes to make the VantageScore 3.0 a possible game-changer in the market.

@schreibot @CreditExperts

Free Credit Check & Monitoring3 Big Changes Coming to Credit Scores

Gerri Detweiler, Credit.com’s Director of Consumer Education, takes an in-depth look at the three major changes that VantageScore has made to create VantageScore 3.0, and what that might mean for consumers.

One of VantageScore 3.0’s biggest changes is how the scoring model treats collection accounts. These accounts, which occur when a lender or a business reports that a debt has not been paid and has been sent to a collection agency, have previously been treated as a very bad sign on credit reports. However, the new VantageScore model does not fault consumers if they have paid off a collection account.

This change could be a major game changer, especially for consumers who have been hurt by unexpected medical debts. As Gerri has previously reported, Credit.com receives many questions from consumers who have had a medical bill for, for example, a copay they didn’t know about or a doctor’s bill they never received, sent to collections. That one missed bill would affect their credit score for years. Once that bill is paid, the VantageScore 3.0 won’t penalize consumers for it.

@GerriDetweiler @CreditExperts

Michelle Obama, Other Celebrities’ Credit Reports Hacked

Hackers have gone on the offensive the past few weeks, accessing and publishing the financial information of several celebrities, including Beyonce, Jay-Z and most notably, First Lady Michelle Obama.

The FBI, the Secret Service and other authorities are all involved in the hunt to find the hackers, who exposed many pieces of identifying information of these public figures such as their Social Security numbers, mortgage information and credit card accounts.

@GerriDetweiler @CreditExperts

Image: NS Newsflash, via Flickr

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • Kenneth Page

    Please write about collection agencies unscrupulously re-aging debts, and how consumers can fight back. I have a couple of these on my credit report, and despite the fact that the statute of limitations have run out, the companies re-aged the old debts to make them appear much newer, keep my scores low; and basically hold me hostage. Thank you.

Certain credit cards and other financial products mentioned in this and other sponsored content on Credit.com are Partners with Credit.com. Credit.com receives compensation if our users apply for and ultimately sign up for any financial products or cards offered.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team