Silvio Tavares, CEO of VantageScore, is the latest guest on CNBC’s hit show, The Exchange. He explained the nuances of credit scoring services and why they have an outsized effect on consumers and mortgage lending. The new program creates opportunities for these area-specific experts to share their insights. This week, they dive into a number of money matters, including the difference between different credit scoring models such as FICO vs VantageScore.
Throughout the episode, Tavares expounded on the ways that credit scoring shapes consumers’ decisions and availability of other financial products. He noted that knowing these new scoring systems is going to be key for consumers trying to successfully make their way through the mortgage market. The conversation illustrated the broader impacts credit scores, either FICO or VantageScore, have on lending decisions and our country’s financial ecosystem.
The Exchange has quickly become the go-to place to hear trusted, independent expertise on the complex world of financial services. By featuring discussions led by industry leaders such as Tavares, the show aims to demystify complex topics like credit scoring. Tavares underscored just how important transparency is to credit scoring. He lamented the often confusing and misleading experiences consumers face due to the lack of clarity about how lenders are supposed to start using these scores.
Beyond examining the direct impact to consumers, this episode focused on how credit scoring services influence mortgage lending predatory practices. Tavares noted that lenders use these scores as a default go/no go measure for risk assessment and loan approval. This dependence can be advantageous or disadvantageous to prospective homebuyers based on their credit profiles.
With The Exchange’s wide national audience on CNBC, it could help expand the conversation further. It’s made available through CNBC website further democratizing access to financial education. The show features conversations with industry luminaries including Silvio Tavares. These discussions provide important context for the challengingly nuanced and sometimes opaque world of credit and finance.