VantageScore is changing the way credit scores are calculated as early as July 1, 2017. So, we want to get information to our readers about possible ways to raise your credit score once these changes roll out.
As a warning, though, don’t make changes to your behavior in an attempt to game the latest credit scoring model until we know how the new model affects consumers. VantageScore is just one of several companies producing scoring models for lenders. FICO is another company that produces a scoring model that is reportedly used by more lenders, especially for home loans.
How are Credit Scores Changing?
Your credit score produced by VantageScore will be calculated differently once the changes are rolled out.
The changes focus on several industry firsts, which will be implemented to obtain a more accurate and transparent credit score. Here is what VatageScore says in their announcement of these changes:
- First tri-bureau credit scoring model to be built in anticipation of the data suppression associated with the CRCs’ National Consumer Assistance Plan (NCAP) and their efforts to make credit reports more accurate, transparent and understandable.
- First tri-bureau credit scoring model to incorporate trended credit data attributes.
- VantageScore 4.0 leverages machine learning techniques in the development of scorecards for consumers with sparse credit histories.
How to Raise Your Credit Score
It’s worth considering changes in the VantageScore scoring model because VatageScore is a firm created through a joint venture by Experian, TransUnion, and Equifax.
Furthermore, your VantageScore could become significantly more important if laws are passed allowing government-sponsored enterprises like Fannie Mae and Freddie Mac to use VantageScore for mortgages.
So, here are some things to watch for as the VantageScore changes roll out:
- Lowering your debt month-over-month could improve your credit score because VantageScore will be using trended data.
- Having a lot of available credit could negatively affect your credit score, which is a major difference in the way credit scores are currently calculated.
- Civil judgments, medical debts, and tax liens will be less likely to negatively affect your credit score.
Remember, these changes only relate to VantageScore. Making changes to raise your VantageScore credit score could hurt your FICO score, which could, in turn, make it more difficult to get a home mortgage, at least in the near term.
Improve Your Credit Score
Although changing your behavior to improve your VantageScore could lower your FICO score, here are some things you can do today to raise your overall credit score.
- Check your credit report for any mistakes and correct them.
- Use credit, and different types of credit.
- Don’t apply for new credit unless it is absolutely necessary.
- Keep balances low.
- Don’t close your old, unused credit accounts.
- Pay your bills on time.
Why You Need a High Credit Score
Having a high credit score is increasingly important in today’s world. It’s used by lenders when you borrow money for things like a house or car. It’s also used when you rent property, apply for insurance, and much more.
Generally speaking, borrowers who have a higher credit score get a better interest rate and pay a lower monthly payment. As a result, they have more buying power and can save more money.
So when it comes to buying a home, borrowers with a higher credit score:
- Can purchase a more expensive home, because they can qualify for a mortgage with a lower interest rate.
- Or, they can buy a less expensive home and save money every month, because of their lower interest rate.
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Marimark Mortgage
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers and homeowners in Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.
To get started with a mortgage to buy your next home, or to refinance your existing home, please fill out our Quick Mortgage Application, or contact us direct.

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