A Guide to Credit Scoring Models\Credit Bureau Data

The three credit bureaus – Experian, Equifax and TransUnion – collect data on consumers’ payment histories, collections activities, outstanding balances and other factors that feed into their credit score. “There are three versions of the base FICO score based on the data at the three different credit bureaus,” Sprauve says. “Each bureau has different data, and most of the data is common, but there is some unique data. The base score is optimized to take advantage of the unique data at each bureau.” In addition to FICO, VantageScore is another credit rating product that factors in unique information from all three bureaus. VantageScore, which was created by the bureaus, has several iterations, such as VantageScoare 2.0 or 3.0. FICO scores range from 300 to 850, while VantageScores range from 501 to 990. Letter grades also accompany VantageScores to help consumers contextualize how they’ll be viewed by lenders, explains Ken Chaplin, senior vice president at credit bureau TransUnion. “It helps guide [consumers] to the sorts of things that they can improve their scores,” he adds.