New Credit Risk Company ... How will FICO be affected?

[mshheaddoc]

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I had been meaning to post this and a user asked me about this so here is the information. For those of you who didn't know, VantageScore is a new credit scoring system some are hoping to replace FICO. The major three companies are using it now apparently.

Anyone had any feedback about it? I have yet to use it!

FICO's reaction

 

[Miami_med]

Interesting.

I must be a little bit out of the loop.

 

[etf]

one of the reasons why berkshire hathaway bought moody's is that companies that evaluate credit risk have a pretty wide moat with their proprietary models, and it will take a lot to cross that moat. the "vantage score" will probably undergo the ipod effect; it may tout more features and might be considered more sophisticated, but people will prefer fico because it's what they're used to.