Credit card companies, personal and installment loan lenders, tenant screeners, utilities and government entities also use VantageScore.įICO score is still far more commonly used in credit decisions, however, reportedly 90% of the time. Shopping sites made up the largest percentage, accounting for a third of all clients. VantageScore says that more than 2,600 US financial institutions use its credit scores, including nine of the 10 largest banks.īetween 20, roughly 14.5 billion VantageScores were issued. VantageScore, however, has removed medical collections entirely from the data it uses to determine a credit score. You’ll need a score of 800 to be considered to have “exceptional” credit by FICO, but only 781 from VantageScore.Ĭredit bureaus no longer report medical debt under $500, but larger collections may still impact your FICO Score. Anything between 670 and 739 is considered a good FICO score, while VantageScore defines a good score as between 661 and 780. VantageScore considers all credit inquiries within a two-week period as a single inquiry.īoth FICO Scores and VantageScores are rated on a range from 300 to 850. Hard credit checks hurt your credit score for both FICO and VantageScore, but the two scores treat multiple inquiries in a given period differently. How is your VantageScore determined?įICO and VantageScore use the same basic info to calculate your credit score, but the two services factor the data somewhat differently. VantageScore also mantains a website that deciphers reason codes, so consumers can find out why they received a certain score. VantageScore says its credit analysis is based on more granular data than FICO and is more stable through changes in the market and consumer spending habits. To get a FICO Score, you must have at least one account that’s at least six months old and one account that’s been reported to the credit agencies within the past six months.Ī VantageScore, meanwhile, can be calculated for someone with a single account that’s only a month old and an account that reported data to the bureaus any time in the past two years. What’s the difference between VantageScore and FICO?įICO credit scores date to 1956, when the Fair Isaac Corporation began assessing consumer credit risk.Įach of the three main credit bureaus uses the FICO algorithm differently to calculate their own FICO Scores. “Because your credit files often differ between reporting agencies, your VantageScore 3.0 may look slightly different from one credit reporting agency to another,” according to Equifax. While all three credit agencies use the same formula to determine your VantageScore, they base it on their reported information, which may differ somewhat from bureau to bureau. The most recent edition is VantageScore 4.0, released in 2017, but the previous version - VantageScore 3.0, from 2013 - remains the most popular. The system has been updated several times since its debut. Experian, Equifax and TransUnion created VantageScore to establish more uniformity in credit ratings and to enable consumers with less credit history - like college students or new immigrants - to still have a credit score.Īccording to TransUnion, up to 30 million previously unscorable consumers have been able to be graded with VantageScore.
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