Tuesday, May 07, 2013
Vantage credit scores try to give consumers a fairer shake on debts in collection that get paid
That “other” credit scoring company, Vantage is trying to give customers a fairer shake by discounting accounts that went into collections but ultimately got paid. Tara Siegel Bernard has an article in the May 3 New York Times comparing the way Vantage and FICO (Fair Isaacs, which is more popular with lenders) works. FICO does consider anything over $100 that went into collections. The link is (website url) here.
The article gives a case where a $750 medical bill left unpaid for a while because of a mix-up wound up in collections and cost a homeowner an extra $30000 in interest on her loan.
Medical collections, even relatively smaller ones, cause a disproportionate effect on many credit scores.
I wonder if parking tickets affect scores. I got a ticket from another city (Ellicott City. MD) in the mail, 30 days delinquent, from a collection agency specializing in tickets, when I had never seen the ticket placed on my car. I don’t know what I did that was illegal. I paid it online *$48) to clean it up. But this sounds like a touch of extortion.
When I worked for RMA ten years ago in St. Paul, it did have a medical collections department. Since I did have health care in my background, I wonder if I might have migrated there had I stayed.
The Vantage credit score has nothing to do with the Vantage information system product that insurance companies use.