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What is the difference between FICO and Vantage credit scores

Vantagescore

Score we all get from online credit report providers such as Credit Karma, etc. This is the credit score that we all think of when someone asks you “do you know your credit score”. The Vantage Score was created by the 3 credit bureaus.  FICO (created by the Fair Isaac Company) is a private company that was capitalizing off of selling your credit scores to businesses that extend credit (i.e. lenders, auto dealers etc.), so the credit bureaus wanted to capitalize also, and created the vantage scoring model, to sell to you the consumer.

There are 6 scoring factors.

Both are similar in that they consider your payment history, utilization ratio and indebtedness.

 

Type of Factor Factor % What is this factor about
Payment History 32% How you pay your bills.  How often are you late & how late you are in paying them.
Credit Utilization 23% The amount you owe (shown as a percentage) of the limit of those accounts.
Credit Balance 30% The balance on a revolving and installment accounts compared to the credit limit.
Age of Credit & Mix of Credit 13% How old are your accounts. Aged accounts are good. Did you know closing old accounts that you do not use can adversely affect your credit score? And Lenders can be more comfortable with extending credit to those with a mix of types of credit (i.e. revolving, installment loans etc)
Inquiries 10% How often are you applying for new lines of credit?
Available Credit 7% The amount of credit you already have available.

FICO Score

The FICO Score is the score you receive from your bank or to purchase a car, they are more than likely pulling your FICO score. It was created by the Fair Isaac Company.

FICO has only 5 scoring factors, compared to Vantage.

Type of Factor Factor % What is this factor about
Payment History 35% How you pay your bills.  How often are you late & how late you are in paying them.
Available Credit 30% The amount owed on a loan compared to the original amount owed.  The balance on a revolving account compared to the credit limit.
Age of Credit 15% How old are your accounts. Aged accounts are good. Did you know closing old accounts that you do not use can adversely affect your credit score?
Inquiries 10% How often are you applying for new lines of credit?
Mix of Credit 10% Lenders can be more comfortable with extending credit to those with a mix of types of credit (i.e. revolving, installment loans etc)

To sum up the difference:

The Vantage Score is the score a consumer gets from any online credit report and credit score provider such as Credit Karma, My Annual Credit Report etc. It is not the scoring used by lenders to extend you credit but it is an excellent tool to use in getting your credit in tip top shape.

FICO Score is the score that can only be obtained from FICO and is used by lenders to extend you credit.

Understanding the difference and their requirements, makes you an informed consumer and prepares you to know how to be creditworthy and how you stack up against other consumers when applying for an extension of credit, a job, renting or wanting favorable interest rates.

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