FICO vs. Vantage: What’s the Difference?

When it comes to credit scores, there are two main players: FICO and Vantage. Both of these scores are used by lenders to assess your creditworthiness and determine your interest rates and loan terms. However, there are some key differences between the two scores that you should be aware of.

FICO Scores

FICO (Fair Isaac Corporation) scores are the most widely used credit scores in the United States. They are calculated using a proprietary formula that takes into account a number of factors, including:

Your payment history
Your amount of debt
The length of your credit history
Your new credit inquiries
Your credit mix

FICO scores range from 300 to 850, with higher scores indicating better creditworthiness. Most lenders consider a FICO score of 670 or higher to be “good” credit.

Vantage Scores

Vantage Scores are a newer type of credit score that was developed by the three major credit bureaus (Experian, Equifax, and TransUnion). Vantage Scores are calculated using a different formula than FICO scores, and they take into account a slightly different set of factors. These factors include:

Your payment history
Your amount of debt
The age of your oldest credit account
Your total number of credit accounts
Your credit utilization ratio

Vantage Scores also range from 300 to 850, with higher scores indicating better creditworthiness. However, Vantage Scores tend to be slightly higher than FICO scores. This is because Vantage Scores give more weight to recent credit activity and less weight to negative information on your credit report.

Which Score Is More Important?

Both FICO and Vantage Scores are important, but FICO Scores are generally considered to be more accurate and reliable. This is because FICO Scores have been around for longer and have been more extensively tested and validated. As a result, FICO Scores are typically given more weight by lenders when making credit decisions.

However, Vantage Scores are becoming increasingly popular, and some lenders are starting to use them in addition to FICO Scores. This is because Vantage Scores can be more sensitive to changes in your credit behavior, which can be helpful if you are trying to improve your credit score.