""VantageScore Solutions"":http://www.vantagescore.com, a Stamford, Connecticut-based independently managed business created by the three major credit reporting companies to provide consumer credit file scores, has unveiled its new credit score model, VantageScore 2.0.
[IMAGE] The update was brought about by the significant change in consumer credit repayment behavior, said company officials, who added that all credit models should be updated regularly to ensure they remain accurate.
""We've recently experienced a variety of economic scenarios, including an increase in foreclosures in the housing market and changing payment priorities among consumers,"" said Barrett Burns, VantageScore Solutions president and CEO. ""This effort will not stop with the introduction of VantageScore 2.0, and the result will be the strongest, most up-to-date credit score on the market.""
The new model was built using a development sample compiled from two performance timeframes, 2006Ã¢â‚¬"2008 and 2007Ã¢â‚¬"2009, with each timeframe contributing 50 percent of the sample, which reflects more recent credit conditions.
""Developing VantageScore 2.0 over multiple performance windows reduces the model's sensitivity to highly volatile behavior in single timeframe,"" explained Sarah Davies, SVP of product management, analytics, and research for the company.
Lenders can contact any of the credit reporting companies to begin testing VantageScore 2.0, which will be available for use by January 2011. VantageScore is currently available to consumers from Experian and TransUnion.