LENDING SOLUTIONS : BY A. REX JOHNSON, PRESIDENT/CEO, LENDING SOLUTIONS CONSULTING, INC
If you think that understanding credit scores was somewhat difficult, I have bad news for you. It may get a lot more difficult. The Fair Isaac score has been around a long time and is by far the most accepted scoring model out there. Over the years, Fair Isaac has and still is making changes. Fair Isaac has had a relationship with all three credit bureaus. In my opinion, there have been ups and downs in that relationship.
One thing that has always been consistent is how both Fair Isaac and the credit bureaus decide who is entitled to what share of the profits, since both parties want what they believe is their fair share. This is not uncommon when large companies have a relationship and times arise when one party does not agree with the other. This was a big problem several years ago and so the credit bureaus introduced another model to compete against the Fair Isaac model. This new scoring model was called “VantageScore.”