LoansForPoorCredit.net Explains Meaning of New Alternative Credit Scoring System
Following the announcement of a newly launched competitor to the traditional credit score, LoansForPoorCredit has published an explanation of the new system and what it can mean for consumers struggling with poor scores.
SPRINGFIELD, Illinois, May 2, 2013 /PRNewswire/ --
VantageScore 3.0 was unveiled this week as a contender to challenge the FICO model of credit scoring. The new system will be made available to consumers in the summer of 2013. Consumer finance site and bad credit loan aggregator site, LoansForPoorCredit, often receives comments from consumers dissatisfied with their FICO scores and unsure what steps to take to drive the numbers up and receive more favorable interest rates. As such, the site has assessed the VantageScore system and decided to share some of its findings that it claims will make substantial changes to the credit scoring industry.
LoansFoorPoorCredit.net made the announcement in the following statement that was released to the press.
"LoansForPoorCredit was intrigued to hear about the new VantageScore 3.0 credit scoring methodology, not least because this new system claims to evaluate data in a way that is more appealing to consumers. We await the full launch of the program with interest and look forward to consumers receiving a fair assessment of their financial activities that can help lead more individuals out of poor credit and toward better scores and better fiscal futures."
Some of the more notable changes to the FICO system present in VantageScore include a difference in the way the system evaluates and assesses collection accounts. With VantageScore, a bill that goes to collection but gets paid or settled will not hurt a consumer's credit score. Once paid, it will be removed. With the current FICO model, the record of the collection stays on the consumer's credit file for seven and a half years.
In addition, VantageScore believes it can provide credit scores to 27-30 million more people than the current system used. This will give a credit reporting history to many consumers who are currently "under the credit radar" and annexed off from finance products as a result. With a new credit score that gives them a starting point, those consumers can build their histories up and eventually preferential rates for mortgages, loans and credit cards.
LoansForPoorCredit.net is a loan aggregator specialist for individuals with poor credit. It offers a free loan comparison and introduction platform. Apply at: http://www.loansforpoorcredit.net/loans-for-bad-credit
Sam Malka:
+1-305-424-8313
[email protected]
SOURCE LoansForPoorCredit.net
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