Many lenders are starting to view credit of those with little or no history in a whole new way. In years past most lenders only had a FICO score to base a home loan application on, but now Vantage Score is offering a new scale in which they combine the three scores from the three major credit rating companies into one easy to understand algorithm. This algorithm has been developed by the lenders themselves to best reflect the information that is important to them in deciding whether to accept a mortgage application.
What this means for consumers is they will have a better picture of who they are and whether they possess the ability to repay the mortgage they are applying for. For those with no credit than lenders can take a more objective look at where the borrower stands as compared to the mortgage. Unlike with a FICO score which has someone with no credit at the same level with someone who has bad credit. This will mean it will become easier for someone with no credit to establish credit and get not only a no credit loan, but maybe even a mortgage for their very own home with a good interest rate.
