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Who do you think owns VantageScore? https://vantagescore.com/company/about-vantagescore/ https://vantagescore.com/company/about-vantagescore/

• judge2020 4y ago
  The point is that it's standard. Credit rating agencies have their own formulas and risk assessment profiles, and typically assess a debtor's ability to pay back a debt in aggregate with other debtors. When companies are shuffling around and selling debt on the backend, they ask a credit rating agency to assess the debt, since a FICO/Vantage score isn't a full picture on how likely a debtor is to pay back a loan. The only difference between the 3 credit reporting agencies are how good their contracts are with lenders in terms of aggregating the most accurate and up-to-date data.
  • nerdponx 4y ago
    When you say "credit rating", are you talking about companies like Moody's? Or is there yet another layer of companies processing individual consumers' data behind the scenes? I definitely meant to write "credit reporting" in my original comment, but I never considered how credit rating and credit reporting companies might interact. Glad I made that mistake because I learned something from your comments.
    • judge2020 4y ago
      Yes, Moody's and the like that caused the 2008 financial crisis. It was indeed a mostly pedantic point, but even the OP there (cwkoss) said 'rating' when they meant 'reporting' since it wouldn't be hard for the government to run a data aggregation platform with a few backends dedicated to calculating FICO or Vantage scores. (Technically the Government already backs the entire credit rating agency and their loan ratings, since they gave out billions in bailout money in the 2008 crisis :P)