The Almighty Dollar

Restoring some fiscal sanity in our -- negative savings rate -- lives


New credit scores, but still the same faulty system

Our borrowing power lies in the hands of the 3 major credit bureaus. Today, they announced the creation of a new credit scoring system called VantageScore.

After reading this story, I still don't understand what the differences are:

Our scores will still be 3-digit numbers.
Our scores will still be categorized into ranges, the higher the better.

Only now, these agencies will be grading our credit histories. "A" is for the best among us, and "F" are failures. I guess I won't have to go to grad school to be a student again.

I find this announcement very frustrating, because it doesn't address the main problem with the scoring system.

My score differs by agency, because each one receives selective information about my credit. For example, some agencies have a record of one of my credit cards, but others do not. Thus, one agency has a more comprehensive picture of my credit history than another agency. So how does the new system ensure that every bureau receives all of my credit information in its entirety?