What Is The Difference Between Fico Vs Vantage Scores
One way the two main credit score models differ is through the method each uses to pull your credit history.
A FICO credit score is determined by a snapshot of all the available credit history data when your score was generated. A VantageScore focuses more on your credit history and informs lenders of your credit behavior.
Both types of credit scores use a variety of similar factors to create your credit score. However, the defining difference is how much these factors influence your score. While both scores look at your credit history to examine your credit usages, balances, payment history, and inquiries, each score is influenced differently by each factor.
Which Credit Score Is Most Accurate
There is no definitive answer to this question, as different credit scoring models have their own strengths and weaknesses. However, it is generally believed that the VantageScore is more accurate than the FICO score, as it takes a wider range of factors into account when calculating your creditworthiness. That being said, both credit scoring models are routinely used by lenders and generally provide a good indicator of your credit health. If you want to ensure that your is as accurate as possible, its a good idea to regularly review your credit report and address any errors that you find. With a little time and effort, you can maintain strong credit health and get the financing you need for important purchases like a car or home.
How Is Vantagescore Calculated
VantageScore calculations take five different factors into account when determining your score. The breakdown is as follows:
- 40% Payment History
- 21% Age and Type of Credit: How long have you had the credit line or debt? Is it student loans, credit cards, home loans?
- 20% Utilization: How much of your allowed credit limit are you actually using?
- 11% Active Debt: How much debt are you currently carrying?
- 5% New Credit and Inquiries
- 3% Available Credit: How much credit do you still have available to spend?
Recently, VantageScore 4.0 calculations eliminated criteria, and percentages of each category. The breakdown follows as such:
- Extremely influential: Total credit usage, balance, and available credit
- Highly influential: Credit mix and experience
- Moderately influential: Payment history
VantageScore 3.0 and 4.0 both use the following credit tiers:
- Super Prime: 781 to 850
- Prime: 661 to 780
- Near Prime: 601 to 660
- Subprime: 500 to 600
- Deep Subprime: 300 to 499.
These numbers dont tell the full story specifically, how each category is evaluated and where the data comes from is different between the two models.
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Why Does My Score Vary Between Bureaus
There are differences in the models, but you may be wondering why your score can be different between the credit bureaus even when the same FICO® or VantageScore® is looked at.
One key thing to be aware of is that not every lender or creditor reports to every bureau, so you may have some loans or accounts that show up on one report and not others. The score for each bureau is only based on the information its able to collect.
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How Are Collection Accounts Handled By Vantagescore And Fico
Both credit scoring models consider when your accounts have been sent to collections. But theyre different in a couple of ways.
In the VantageScore system, accounts that were sent to collections will be ignored when you pay them off, no matter what amount was owed. That said, VantageScore will consider unpaid collections amounts of any size.
On the other hand, in the FICO® system, balances of less than $100 that are sent to collections are not considered at all, and FICO® will ignore amounts of any size after youve paid them off.
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Treatment Of Hard Inquiries
FICO and VantageScore also vary slightly in the way they treat hard inquiries. With FICO, multiple hard inquiries within a 45-day period are treated as a single inquiry.
VantageScore treats multiple hard inquiries as a single inquiry if they occur within a 14-day window.
This is called deduplication, and it’s useful if you’re comparing rates across several lenders, such as when mortgage shopping.
Fico Vs Vantagescore: Why Your Credit Score Differs Depending On The Source
Money, Home and Living Reporter, HuffPost
Have you ever checked your credit score for free on a site such as or Mint, only to find out from a credit card company or car dealership that your real score is actually much lower?
Thats because the provided by free services are considered educational. The score that most lenders see is your FICO score, which is calculated differently and often costs money to access.
Thats nothing new, but it appears the internet at large just found out. And as usual, Twitter users have the best response.
Perry Neeyum
Me waiting for my approval for a car after looking on credit Karma:
2+2
So why is your credit score different depending on the source? Heres a closer look at where credit scores come from, how theyre calculated and which one you should care about.
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Who’s this for? Avant Personal Loans can be a good option for those who need money in a pinch. If you manage to be approved by 4:30 p.m. CT Monday through Friday, you can receive your funds as early as the next day. Of course, quick funding can also depend on whether or not you have submitted all the necessary information in a timely manner.
This lender also lets you check to see if you prequalify for the loan without harming your credit score. If your credit score isn’t great, you can still get approved since Avant looks at both your credit score and income.
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Vantagescore And Fico Ranges
Both credit-scoring models have evolved over the years, resulting in multiple versions of each. FICO generates two types of scores base and industry-specific scores.
FICO® base scores help predict a consumers ability to repay a debt based on their overall credit profile, and they range from 300 to 850. Industry-specific scores help predict a consumers ability to repay a specific type of debt, such as an auto loan or mortgage, and they range from 250 to 900.
Unlike FICO, the VantageScore® model doesnt generate industry-specific scores. It only calculates base scores. When it was first introduced in 2006, the scoring model had a range of 501 to 990. That changed when VantageScore® 3.0 was released, with a range of 300 to 850. And it continues today with VantageScore® 4.0, making it easier for consumers to compare their VantageScore® and FICO® credit scores.
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What Will Hurt Your Credit Score
Overall, the two scoring models have more commonalities than differences. They are both looking to predict whether youll be a risk for lenders, so there are certain predictive factors that will ding you in both VantageScore and FICO:
- Taking out too many loans in a short period of time
- Having your identity stolen
- Over-relying on debt to pay bills.
While VantageScore may be more statistically forgiving of isolated mistakes, both scores will dock points for negative financial habits. The purpose of a more sophisticated scoring system is to help lenders make better decisions, not help consumers hide mistakes and debts.
The takeaway here is to pay attention to recurring behaviors that may be hurting you and take steps to remedy them. If you keep running up a higher credit card bill than you can pay off at the end of the month, determine what you are spending too much on and eliminate it. If you keep having to raise your credit limit, there could be the potential that your spending outweighs your income and you are avoiding a budget.
Fico Vs Vantagescore Credit Scores: Whats The Difference
Shopping around for a loan or new credit? Once youre ready to start applying, theres one major detail youll want to keep top of mind: your credit score.
Your credit score gives lenders an idea of your creditworthiness, or the likelihood that youll repay the money they lend you. The higher your credit score, the more creditworthy lenders will consider you.
Today, there are two types of credit scores that show lenders your creditworthiness FICO and VantageScore. Both credit scoring models have their own unique variations and data-gathering methods, so its common to see two slightly different scores depending on where you look.
In this article, well walk through the FICO and VantageScore credit tiers, how the scoring models calculate your score, and the factors that influence your credit score in each scoring model.
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What Are Vantagescore & Fico Credit Scoring Systems
VantageScore and FICO score are two of the primary credit score models. Their scores help determine applicants eligibility for credit cards, loans, mortgages, and other lending situations. These scores measure consumer risk in an easy-to-digest number.
Both models deliver numbers that range between 300 and 850. Before 2013, VantageScores scores ranged from 501 to 990. However, it was changed to help consumers and lenders more easily compare across models.
FICO first came about in 1989 via the Fair Isaac Corporation, a data analytics company. The company claims that 90% of the top lenders use its scoring method. Its algorithm is currently in its tenth iteration.
VantageScore, meanwhile, is the new kid on the block, arriving in 2006. Unlike FICO, which is run by a single entity, VantageScore was crafted by the three major credit bureaus: Equifax, Experian, and TransUnion. According to VantageScore, the model was developed because there was a need for a highly consistent, more predictive scoring model that is easy to understand and apply.
What Can I Do To Improve My Vantagescore And Fico Score
You may not have the ideal credit score at the moment, but FICO® and VantageScore will monitor your activities regularly, which gives you the chance to improve your scores. This can be done by paying all of your bills on time, keeping your credit utilization rates low, and refraining from applying for new credit unless its absolutely necessary.
Additionally, through responsible use, secured credit cards can boost the credit score for someone just starting out on their credit journey or help you rebuild your credit score if youve made some credit missteps in the past. Secured credit cards allow you to earn the trust of lenders without posing as much of a risk since youre putting your own money on the line.
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How Your Vantagescore 40 Credit Score Is Calculated
- Extremely influential: total credit usage, balance, and available credit
- Highly influential: credit mix and experience
- Moderately influential: payment history
- Less influential: age of credit history
- Less influential: new accounts
As you can see above, VantageScore 4.0 no longer uses percentages to show influence on your credit score. Instead, categories are rated by their level of influence, ranging from extremely influential to less influential.
Whats The Difference Between Fico And Vantagescore
FICO and VantageScore are two generic credit score models that are used across the credit reporting industry. While both scoring models have the same scoring range and goal to determine a borrowers creditworthiness to help lenders decide whether or not to extend credit to an individual they do have different scoring methods.
FICO generates three different credit scores one for each credit bureau. While a lender may pull all three scores when assessing your creditworthiness, each number may differ depending on which agencies your past lenders reported to.
On the other hand, VantageScore is a tri-bureau model created through a partnership of all three major credit reporting agencies . Your VantageScore is just one number, and it incorporates machine learning to generate a score for people who may not have enough credit history for a FICO score.
Additionally, each scoring method places differing importance on different scores. FICO, for example, puts more weight on your current credit balances than VantageScore. In contrast, VantageScore pays closer attention to your length of credit history and types of credit used compared to FICO.
Related: Factors that go into your credit score
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So Which Credit Score Should I Check
The simple answer? Both. Overall, more lenders and creditors will use your FICO Score but you can never be too certain. Make sure to find out the credit score your potential lender will check before taking the time to apply.
One more note: The credit score you get online may not match the one your lender sees perfectly no worries. Itll be close enough that you can get a good idea of where you stand. Once you know your numbers, youll be able to make decisions that are best for you and your finances.
Read more:6 Tips for Building Your Credit
We are not credit analysts and do not specialize in credit. The contents in this article are for informational purposes only and do not constitute financial or credit advice.
Best Egg loans are unsecured or secured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. Best Egg Credit Card is issued by First Bank & Trust, Brookings, SD pursuant to a license by Visa International. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” as applicable.
How Does The Vantage Credit Score Work
The Vantage credit score is calculated on a scale of 350 to 850 and takes into account several different factors that contribute to an individuals financial health. These factors include payment history, outstanding debt, the length of your credit history, new accounts, and types of credit you have used in the past.
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Not only does your Vantage credit score have a big impact on your financial life, but it can also affect other aspects of your life, such as renting an apartment or even getting a job. Because lenders and landlords use this number to assess your overall trustworthiness as a borrower or tenant, it is important to maintain a good credit score by making timely payments, paying down your debt, and keeping your credit utilization ratio low.
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Are There Any Other Credit Rating Systems
While FICO is by far the most widely used credit rating system, followed by VantageScore, there are a few others. Transunion has its own called TransRisk, while Experian does, as well, called PLUS. both provide scores with a range similar to a FICO Score.
Currently, FICO is the most commonly used option for credits coring. VantageScore is only used by a few lenders. Some estimate about 6% of lenders use VantageScore instead of FICO. However, its possible this number could grow and its best to keep an eye on both your VantageScore and your FICO score.
Jordan Fabel
Covering different ‘paths’ that people’s lives can take. Creative, foster parent, ticket dismissal, you get the idea. Exploring the requirements, certifications, exams, and obviously, approved courses along each path. I, personally, am the high school dropout son of two teacher parents. So how did I get here? That story is coming soon!
What Is A Good Vantagescore For Credit
There is no ideal VantageScore for credit, as it depends on several factors such as your income and outstanding debt. Generally speaking, a score of 700 or higher is considered to be good, with 800 being the highest possible score. However, its important to remember that your VantageScore is just one factor that lenders look at when determining your creditworthiness. Maintaining a good credit score takes time and effort, but it is worth the investment if you want to secure competitive interest rates on loans and new lines of credit.
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Vantagescore Easier To Get
If you’re ordering your credit score, the VantageScore can be easier and cheaper to obtain. By law, you’re entitled to a free copy of your credit report each year from each of three credit reporting bureaus, but that doesn’t include the credit score. Only one of the three, Equifax, allows you to order your FICO score through www.annualcreditreport.com, the official web site established for consumers to order their free credit reports. Experian does not provide FICO scores to consumers, only to lenders, and Transunion charges at least $15 for a FICO score, vs. providing a VantageScore free of charge with the annual credit report.
You can order Transunion and Equifax FICO scores and credit reports directly from MyFICO at www.myfico.com for a fee. But if you find it easier and cheaper to order VantageScores along with your free reports from the official web site, you can use the table above to get an approximate idea of what your FICO score should be.
How To Improve Your Vantagescore & Fico Credit Scores
Despite the real differences involved in our VantageScore vs. FICO comparison, these differences should have minimal impact on your scores, ability to apply for loans, credit cards, etc. So long as you practice good credit discipline, you shouldnt have a problem building and maintaining an attractive credit profile.
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