Credit score blending is a debated topic between both experts and consumers who are concerned with having an accurate reflection of people’s credit scores. The new credit scoring system to be introduced, VantageScore, does this credit score blending to come up with just one number. While FICO has for years been producing 3 credit scores for each person based on the information given to it by each of the top 3 credit report bureaus for crediting report in the United States.

Why Use Credit Score Blending?

Until VantageScore was introduced, the 3 major bureaus gave their information separately to FICO (Fair Isaac Company), which resulted in 3 separate numbers, one based on each credit bureau report. The 3 credit reporting agencies are Experian, Equifax and TransUnion. And each one has slightly different information offered via their credit report service.

Each company is better established in a certain region of the country, resulting in more detailed information on some credit accounts and less detailed information on others. And each agency uses a slightly different model of calculating credit scores. So instead of FICO using credit score blending to combine them, it calculated each one individually because of those differences. This may cause changes to an individual’s credit report and score.

VantageScore, however, takes the information from each of the 3 companies and uses credit score blending to come up with a single credit score based on the information. VantageScore and proponents of the credit scoring system say that this gives a much better overall picture of a person’s creditworthiness that looking at just one of the FICO scores based on one agency, or even looking at all three of them separately.

With credit score blending being done this way, all of the information is combined into a single credit rating. These types of credit solutions are helping consumers change the way their credit is viewed by others.

Disadvantages of Credit Score Blending

Critics of the idea claim that this type of blending can cause problems for people thanks to mistakes made by the 3 major bureaus. Mistakes on credit reports aren’t uncommon, which is why monitoring your credit is a good idea. (You’re entitled to free credit reports from each bureau once a year.)

With credit score blending if one agency has a mistake in its report, that much lower credit score will be blended with the other two correct reports, lowering the credit score and damaging or destroying a person’s creditworthiness until the error is corrected.