![]() ![]() If you’re having a hard time making your payments, talk to a debt coach for free today! 3. For example, VantageScores issue higher penalties for late mortgage penalties than FICO. Late Payment PenaltiesĪlthough both scores are affected by late payments, each model penalizes scores for late payments differently. VantageScore only requires one month of credit history in the past two years. In order to generate a FICO score, you must have at least six months’ credit history with at least one active account. No one can predict exactly what FICO or the credit bureaus’ scores will be after evaluating your credit, but we do know some important details about how scores differ between FICO and VantageScores. The specific method used to calculate a score from one’s credit report is a trade secret. 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. However, the defining difference is how much these factors influence your score. A VantageScore focuses more on your credit history and informs lenders of your credit behavior.īoth types of credit scores use a variety of similar factors to create your credit score. One way the two main credit score models differ is through the method each uses to pull your credit history.Ī FICO credit score is determined by a snapshot of all the available credit history data when your score was generated. What is the Difference Between FICO vs Vantage Scores? You can pay extra to get your VantageScore when you order a free credit report from. The most current version is VantageScore 4.0, which uses a scale the same scale as FICO, ranging from 300 to 850. Since then, they’ve been aggressively marketing VantageScore. ![]() One of the bureaus, Experian, even went so far as to stop offering FICO score information to consumers. In 2006, the 3 major credit bureaus – TransUnion, Equifax, and Experian – joined forces to create VantageScores® to compete with FICO. This score is then used by lenders to determine your creditworthiness. This model evaluates a credit report and generates a score between 300 and 850. Since 1956, FICO (formerly called Fair Isaac Corporation) has provided different types of credit scoring services to help lenders and creditors evaluate their customers’ creditworthiness. The term “FICO score” is often used interchangeably with the term “credit score.” ![]() The most common types of credit scores used are FICO Scores and VantageScores. Each score is calculated and used differently depending on the circumstances. These scores tell both the consumer and lenders where your credit stands. The term “credit score” includes several types of credit scoring models. Use this guide to learn the difference between credit score, FICO Score, and VantageScore. No matter what credit score model you use, it’s important to understand what your score means and how it is calculated. And to make things even more confusing, you may have heard that there are different types of credit scores. Understanding your credit score can be hard. ![]()
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