If you know much about credit scores, you are probably familiar with the FICO score. It is the credit score that lenders use more than any other, and there are many ways to get it for free.
Another credit score — the VantageScore — is less well-known. However, that might be about to change.
Recently, the Federal Housing Finance Agency announced that it will now allow mortgage lenders to use the VantageScore 4.0 model credit score for loans backed by both Fannie Mae and Freddie Mac. Such loans account for about half of all recent mortgage originations, according to the Wall Street Journal.
What is the VantageScore?
So, what is the VantageScore credit score? As Money Talks News founder Stacy Johnson explains in “What’s the Difference Between FICO and VantageScore?“:
“In 2006, the three major credit-reporting agencies — Equifax, Experian and TransUnion — got together and launched the VantageScore. They began providing their new score to websites like Credit Karma, Credit Sesame and NerdWallet, and those sites began giving it away free to attract subscribers.”
Unlike traditional FICO scores, the VantageScore incorporates alternative data — such as your rent, utility and telecom payment histories — in calculating its scores, according to the Wall Street Journal report.
However, it is worth noting that newer FICO models have started to incorporate such alternative data.
Today, you can select among 12 companies that will provide your VantageScore without asking you to pay for the privilege. To get your gratis score this way, simply stop by the official VantageScore site and look over the list of these companies.
They currently include:
- Chase
- Credit Karma
- Credit Sesame
- LendingTree
- Nav
- NerdWallet
- OneMain Financial
- SavvyMoney
- Self
- Synchrony Bank
- U.S. Bank
- WalletHub
Some of these companies offer more VantageScore-related perks than others, so read through the list at the VantageScore website to find the right choice for you.
Why you need to check your score
A healthy credit score is crucial if you hope to land the best terms on a mortgage or auto loan. A bad credit score might even prevent you from landing a job, as we note in “8 Types of Companies That Are Looking at Your Credit Report.”
So, it can make sense to use these free offers to check your VantageScore credit score. Just remember to also check your FICO score, as this credit score carries more weight with a greater number of lenders.
Hoping to improve your credit score? Check out “7 Ways to Boost Your Credit Score Fast.”
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