A good Vantage Credit Score is any score over 700, with scores over 750 considered “excellent” credit. This differs from traditional FICO scoring system in that the stipulation for “good” credit skews higher. Under FICO, a good score would have been in the 670-739 range, but Vantage Score is stricter in how it determines good credit.
A Vantage Score is a proprietary scoring model that was designed by the credit bureaus themselves. Most landlords and property managers are more familiar with the FICO scoring system, which was the main system before 2006, when Vantage was introduced. Unlike FICO, which offers a range from 300 to 850, the Vantage range is from 501 to 990. Customers are scored using some different criteria than a traditional credit report, so it’s important to familiarize oneself with these differences to properly read a Vantage Score.
How Do FICO and Vantage Differ
Historically, FICO based much of its scoring criteria on payment history and how an individual applies for and uses credit, while Vantage places more weight on recent credit activity such as newly opened accounts and inquiries. The impact is that a potential tenant that opens several new accounts or makes multiple inquiries in a short period of time could see more of a negative impact on their Vantage score, which is important to keep in mind when you’re renting to someone who may have been house hunting or seeking additional credit for a move.
As with FICO, Vantage Score compares individuals against other people to determine score averages. By looking at the worst credit users and the best credit users, the system determines which scores should be considered poor, fair, good, and excellent. If multiple people are listed on an account, Vantage Score will only consider the primary account holder, which is worth consideration if you’re looking at an application from a couple.
Our recommendation is not to put all the eggs in one basket by considering credit score the be-all and end-all determinant in whether you rent your property to a prospective tenant. There are other factors worth considering that will tell you a lot about a person, from employment and criminal history to previous evictions. A person with an excellent credit score could still be a nightmare tenant. When you do look at credit history, it’s important to know how Vantage Score differs from FICO Score.
To better help you make the right decision, try our RentalConnect program, which offers property owners and landlords a great alternative to the expense of full tenant screening. This service requires no on-site visit, sign-up, or membership fees, making it extra convenient. The $34.95 service fee is paid by the applicant. Available 24/7, RentalConnect is fast, easy, secure, and delivers reports needed to make an informed decision, including a credit report, a national criminal search, and a national eviction search. Reach out to us for more details!
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