Save Money / Consumer News
Credit agencies to debut new VantageScore scoring system in April
LOS ANGELES (KABC) -- No credit or low credit? A new scoring system will help you the next time you're looking for a loan. The three major credit reporting companies are teaming up. The new system could give you a higher rating.
Each time you deal with a mortgage, buy a car or get a credit card the lender looks at your credit score. The higher it is, the easier it is to get a loan and to get lower interest rates.
Now a new credit scoring system could raise your score and help you establish credit if you don't have any. It's called VantageScore 3.0. It was created by the three major credit bureaus, including Experian in Costa Mesa.
"A new score like this is truly reflecting where we are today and how consumers are behaving in the marketplace," said Maxine Sweet, Experian vice president of public education.
Say you're a victim of a disaster, like your home burns down or you're caught in a natural disaster like a hurricane, and you can't make your debt payments. Those events are taken into account by VantageScore, which could improve your credit score.
Or let's say you have no credit history at all.
"In the past, they were shut out of that marketplace because they didn't have enough credit history to score, and the VantageScore 3 scores a great many more of those under-scored consumers," said Sweet.
In the past, paying rent had no effect on your credit score. But with this new credit-scoring system, that's about to change.
"Really has made a huge difference for a lot of consumers, not only to create a score for them, or to let them be scored, but also to raise bad scores," said Sweet. "They can offset some of the negatives in their past because they have this great positive account."
VantageScore will make its full debut in the middle of April. But the most popular scoring system now, the FICO score, will still be around. But not all lenders will necessarily use both.
finance, save money / consumer news, ric romero
- US teacher killed in Benghazi: officials 46 min ago
- The Game raises money for family of slain boy 15 min ago
- Motorcycle officer struck by hit-run driver
- LA council OKs restrictions on e-cig sellers
- LAPD seeing fewer qualified applicants
- UCLA police seek sexual battery suspect
- Cold snap moving across Southern California 6 min ago
- LAX shooting suspect appears in IE court
- Sebastian Ridley-Thomas wins special election
- Stolen truck with radioactive load found
- abcnews: Teen saved after swallowing magnets
- Paul Walker autopsy results released
- Keri Russell's Brooklyn home burglarized
- OTRC: Gal Gadot cast as Wonder Woman in new film