LendingTree Academy

Why does LendingTree use VantageScore?

Written by

Austin Light

Posted

December 17, 2019

We’ve talked before about how there are hundreds of credit scoring models out there and they’re all a little different. That can be a bit confusing.

Well, there’s a model that aims to take the confusion out of credit scoring.

It’s VantageScore, a credit scoring model developed by the big three credit bureaus: Experian, Equifax and TransUnion. Together, they created VantageScore to make credit scoring more consistent, accurate and easy to understand.

As big fans of consistency and accuracy, we decided to use it in the LendingTree app. So when you sign in and see your credit score, that’s coming from VantageScore. By the way, if you haven’t downloaded the app already, you should. It’s free.

We went with VantageScore for our app three reasons:

No. 1: It’s easier to understand

Just like the other models, your VantageScore credit score is calculated based on your payment history, types of credit, length of your credit history and more. Typically, this information is reported to the credit bureaus, which then render a credit score, so it’s not always obvious to you how those factors break down.

VantageScore makes understanding all of this really easy. They explain the factors that affect your credit without using lots of complicated financial jargon. As someone who hears complicated financial jargon often, that’s a good thing.

I’m sorry financial people, ya boring.

Plus, VantageScore has features like games and simulators to help you get a good grasp on your credit health. Games! The opposite of boring!

Anyway, the takeaway here is that with VantageScore you don’t have to worry about multiple credit scores that are inconsistent with each other. You get one score, and easy-to-understand explanations of the factors that makeup that score.

No. 2: It’s accessible

Some “old school” credit scoring models make it hard for people with limited credit history. That’s not the case with VantageScore, which can provide your credit score with just one month of credit history or at least one account reported within the previous two years.

VantageScore says that’s helped them offer accurate credit scores to about 40 million consumers who previously couldn’t get them. That means more people are getting good loans, which helps them avoid payday lenders and other predatory, high-interest loans.

No. 3: It’s popular

VantageScore first showed up on the scene in 2006. They quickly built trust and now thousands of lenders, landlords and credit card companies use VantageScore credit scores to make financial decisions for borrowers.

Plus a bunch of financial wellness websites and services, including the LendingTree app, are giving people free access to their VantageScore credit score.

If lenders are going to use it to help them determine a loan offer, you should probably use it too.

So there you have it. If you want a better picture of your credit situation, choose VantageScore. And if you want a fast and free way to see your VantageScore credit score, use the LendingTree app. Grab your phone and download it now in whichever App Store you use.

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