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LaToya Irby

New VantageScore Removes Penalty for Paid Collections

By March 14, 2013

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Good news for consumers who have paid collections on their credit reports: the newest version of the VantageScore will no longer penalize consumers for paid collections. That means if you have a collection with a $0 balance - whether it was paid or settled - it won't affect your VantageScore, at least not the latest 3.0 version of the score. Here's a little extra motivation to pay off any outstanding collections you've been avoiding.

However, be aware that this is new credit score model may not be used by all lenders. The scoring model your lender uses may still consider both paid and unpaid collections.

Updated VantageScore Range

Scores under the new VantageScore 3.0 will range from 300 to 850, more like the FICO score, instead of the previous 501 to 990 range. The updated credit scoring range will make it much easier to understand your VantageScore.

New Website for Explaining Reason Codes

When you receive your VantageScore (or another credit sc0re), you'll notice that you have a list of 4-5 factors that influence your credit score. Sometimes these reasons appear as alphanumeric characters that don't make much sense. VantageScore has put together a website for helping you understand the reason codes that come along with your credit score. Enter the code into ReasonCode.org to get more details about the factors influencing your credit score. Some reason codes may not be available because they're not used by VantageScore.

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