Posted by Beth/MD on 3/14/06 8:30pm
Msg #105011

New credit scores

I read a news article concerning a new formula for credit scoring. It's called VantageScore and will be used by all 3 agencies. Will this "straight-forward" scoring change the type of lending we'll see?

Reply by Beth/MD on 3/14/06 8:32pm
Msg #105012

according to the article you are scored A, B, C, etc. 601-700 is a D. D is considered a high risk. I'm curious to know others opinions on the trends we may see -- or not see.

Reply by Premier Signing Services on 3/15/06 7:27am
Msg #105105

If they are considerning 601-700 a high risk, you will see a lot les loans being done or else they will be at a lot higher interest rates. right now, lenders are accepting down to 580 before they are considered high risk or sub-prime. Some of the larger lenders are going down to 620, but this is till well within the range specified as high risk by the new model. If this is true and they are going to be switching to this type of a score instead of a number basis, then all I can say is be prepared for higher rates and less work.

Reply by Beth/MD on 3/15/06 8:09am
Msg #105120

Here's a blurb from the article;

Borrowers with "A" credit will be eligible for the lowest interest rates; those with an "F" will pay high rates, or might even be unable to get credit. Scores will range from 501 to 990, compared with 350 to 850 for FICO scores.

That difference could confuse consumers, Totaro says. For example, 800 is a "C" score under the VantageScore model. But under the FICO system, an 800 score means a borrower has outstanding credit, he says.


and the link:

http://www.usatoday.com/money/perfi/credit/2006-03-14-credit_x.htm

Reply by AngelinaAZ on 3/15/06 4:39pm
Msg #105377

Just experimenting.

//2 //3

Reply by AngelinaAZ on 3/15/06 4:43pm
Msg #105379

Re: Just experimenting.

:0 :p :uhh:

Reply by AngelinaAZ on 3/15/06 4:45pm
Msg #105380

Re: Just experimenting.

:o :p