So if the same data is presented by different credit bureaus, it should yield the same result, or credit score.
“The ability to use a common score across the three CRCs minimizes consumer and lender confusion,” said VantageScore Solutions President and Chief Executive Officer Barrett Burns, in a press release.
“Because of VantageScore’s consistency across all three CRCs, lenders who use it will be better able to delineate risk in a predictive manner.”
This is pretty important because many banks and mortgage lenders currently rely on the middle of our 3 credit scores when making a decision to extend credit.
And borrowers have to worry about disparities between their credit scores, which are often the result of different reporting by bureaus using the same data.
The hope is that with characteristic leveling in place, differences in credit score will only be attributable to different data sets, as opposed to differing scoring algorithms.
This increased consistency could lure more creditors over to VantageScore, which is currently a small fish compared to the all-powerful Fico score.