Here’s how a credit score is supposed to work:

A credit score, according to the Web site of a company that sells them,
“is simply a number that represents the likelihood that you will repay
a debt as agreed. Credit scores are calculated using information from
your credit report at the moment it is requested by a lender.”
With a high credit score, you can line your wallet with plastic and use
the equity in your home to buy a new car, renovate the kitchen or take
that dream vacation.
Earn a low score by defaulting on a loan, paying your cards late or
filing for bankruptcy, and it’s cash on the barrelhead - no new cards
for you.

Read the article below for how it may be in the future. It talks about the FICO and VantageScore.

-Adam

Settling the scores (Stamford Advocate)

Stamford-based company gives FICO some competition A credit score, according to the Web site of a company that sells them, “is simply a number that represents the likelihood that you will repay a debt as agreed. Credit scores are calculated using information from your credit report at the moment it is requested by a lender.”

technorati tags:fico+and+vantagescore

Fico scores better than VantageScores at least to mortgage lenders
People in the mortgage industry say there’s no chance that home lenders will adopt VantageScore.

They will stick with the FICO score because it has proven to be accurate.

“With billions and billions of pieces of data, it’s becoming more and more refined with each transaction,” says Dan Green, mortgage planner with Mobium Mortgage in Chicago.

The credit bureaus are aware that VantageScore won’t be accepted by mortgage companies any time soon, but they are marketing it to other industries, such as the credit card and auto industries.

A little history: For a long time, the credit bureaus resisted letting consumers see their FICO scores.

In 2001, California passed a law requiring the bureaus to disclose credit scores to residents of that state.

It was easier to make the scores available to everyone rather than only Californians, so the bureaus flung open the doors.

They quickly discovered that millions of consumers were willing to pay to see their scores.

But, the FICO scoring scale was counterintuitive, and bureaus had to share revenues with Fair Isaac.

Conflicting credit scores cause confusion (Bankrate.com)

When you buy your credit score, it’s almost certainly not the same number your mortgage lender will see.

technorati tags:VantageScore, FICO+Score