Ep. 85 - From 3 Credit Reports to 2: How Does it Affect You?
What are you really judged on when you apply for a loan? If you’re applying, there are some changes to the standard model that will affect you. In this episode, we explore the transition from three credit reports (TransUnion, Equifax, and Experian) to two (FICO score and Vantage Score 4.0). You’ll discover how lenders use credit reports to assess potential borrowers and how the transition to two credit reports will affect consumers in the coming year. We also look at the innovative Vantage Score 4.0 model, designed to benefit borrowers who may not have a credit score due to a lack of a mortgage or auto loan. Medical bills, tax liens, and civil judgments will be less influential on credit scores due to the new models.
Join in and understand the circumstances surrounding assessing creditworthiness and find out how the change of credit reports affects you!
[00:01 - 04:06] From three credit reports to two: Exploring the shift in credit scoring models
[04:07 - 10:17] New vantage model offers credit scores to 33 million US citizens and predictive risk performance across consumer products
[10:18 - 15:16] FICO 10: how it influences scores, taking into consideration alternate trade lines and recent credit behavior inquiries
[15:17 - 20:35] FICO and Vantage Score 4.0 removed major credit flaws, less impact on consumers and lenders
[20:36 - 25:30] How the model changes are leading to a significant win for borrowers and prospective buyers
Quotes:
"It's almost like the Wizard of Oz with those repositories. There's really not a place you could go to talk to someone about your credit report at Experian, TransUnion, or Equifax, and good luck calling. That's just been an absolute nightmare." - Quinton Harris
"Borrowers have been programmed over the years not to want to have their credit pooled, but one time, and that's because they have been influenced… I don't really think it's the media in this case.” - Quinton Harris
"I think that's been the biggest flaw of credit reports...there's been no formula." - Quinton Harris
“You can see that these two models… you get the best of both worlds.” - Quinton Harris
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