“New” VantageScore: Same Dance, Different Tune
The credit bureaus have recently announced they are adopting a new scoring method for consumer credit histories in order to have “more uniform” scores across the three bureaus and provide better “predictors” of credit risk. Yeah, right! A Waltz is a waltz, whether the tune is Blue Danube or not.
Bottom line, just because they are claiming to adopt this “new” system for the consumer’s benefit, doesn’t mean that consumers will—benefit, that is!
Once again, with the classic misdirection of every, even slightly talented, magician, the credit bureaus are trying to take the focus off their real issues and focus consumers on something else. Quick—look over there while I switch things over here.
If Honda, Toyota and BMW all announced that they have “adopted” the same exact plan for building a car so they they will be uniform for the public, most people would immediately ask—what’s up with that?
The same goes for the credit bureaus. There are three because they, in competition with each other, came up with different scoring methods for determining consumer credit scores. If they are going to use the same model now for the “public good” then why would we need three bureaus???? One should be be sufficient, shouldn’t it?