The big three credit reporting companies have agreed to use the same formula to calculate credit scores.
Equifax, Experian and TransUnion announced today the launch of VantageScore, which will use a single methodology to come up with scores.
"Under the new scoring system, credit score variance between credit reporting companies will be attributed to data differences within each of the three consumer credit files and not to the structure of the scoring model or data interpretation," the companies said in the announcement.
VantageScore is reportedly "a direct result of market demand for a more consistent and objective approach to credit scoring methodology" across the big three and leverages the collective experience of the industry's leading experts on credit data, scoring and analytics.
The new system "will provide consumers and businesses with a highly predictive, consistent score that is easy to understand and apply," according to the announcement. The scores in the new system range from 501 to 990.
The product, commercially available starting today, is being independently marketed and sold separately through each of the three national credit reporting companies, the announcement said.