New Credit Scoring System... link to this post
In case you haven't seen it already, there's an article on usatoday.com about a new credit scoring system...I guess this is a good thing...Does that mean FICO score will be putting on the chopping block? I thought this was interesting since it gives us a look into a snippet of the credit scoring algorithm. Yeah, a little obvious but hey...
The scores are important because they measure how much debt a consumer is carrying and how well the consumer keeps up with bills.And here's the credit scale:
In a separate statement, Experian said the scores will be grouped on "the familiar academic scale." Experian gave these groupings: A - 901-990 B - 801-900 C - 701-800 D - 601-700 F - 501-600 Experian said it hopes that "as consumers increase their awareness of the importance of credit scores and credit reporting, the consistency of VantageScore will provide the type of information they need to evaluate their credit standing and make sound financial decisions."