Is FICO® or VantageScore® an accurate credit score?
Quick insights
- FICO® and VantageScore®—two common credit scoring models—may both provide a helpful look at your creditworthiness and are generally considered reliable tools.
- Lenders typically choose which model to use based on their preferences and industry practices.
- Understanding how your credit score is calculated may help you build your credit profile over time.
Lenders use various credit scoring models to decide if they'll approve an application. Because different models weigh your financial habits differently, it's common for your scores to vary depending on the scoring model used. You might have heard of FICO or VantageScore; both models can be reliable tools that use information from your credit report to help lenders understand your credit behavior.
What are some differences between FICO and VantageScore?
One difference between FICO and VantageScore is how they weigh the information on your credit report. While the models look at similar data, they prioritize it differently.
For the sake of comparison, we’ll be looking at VantageScore 3.0 and FICO 8. These models use many of the same factors but with a different emphasis. For example, VantageScore 3.0 weighs credit utilization (the amount of available credit you're using) at 20%. FICO 8 weighs this same factor at 30%, making it a larger part of your score in that model.
There are also differences in how they handle new credit applications. When you apply for a loan, a lender may perform a hard credit check, which might affect your score. VantageScore models may group all hard credit checks from a 14-day window into a single event, while newer FICO models may use a 45-day window for certain types of loans like auto or student loans.
Which score do lenders typically rely on and why?
Many lenders and financial institutions rely on both VantageScore 3.0 and FICO 8 to evaluate applicants. FICO is the older of the two companies and has a long history in the industry, specifically with mortgage lending. VantageScore was created more recently by the three major credit bureaus—Experian™, Equifax® and TransUnion®—to provide a consistent scoring method across all of them.
Lenders might prefer one model over another depending on the product you want. Some may use industry-specific models, such as a specialized auto score, which FICO offers, but VantageScore does not. Other lenders might choose a newer model because it can provide scores for people who are new to credit.
Chase Credit Journey® is a free online tool for anyone 18 or older with a valid U.S. address and Social Security Number, offering access to your credit score based on the VantageScore® 3.0 model.
Is one more accurate than the other?
In the world of credit, accuracy isn't about one score being more correct than the other. Instead, it's about how well the model predicts your future bill-paying behavior. Both models may be effective at this task, but they may give you different results because they look at your data through different lenses.
Your VantageScore might be lower than your FICO if you've recently applied for several lines of credit. This is because VantageScore weighs hard credit checks more heavily than FICO does. These variations are a normal part of the credit system and don't mean one is more accurate than the other.
How do score ranges and models differ?
While both models used to have different scales, the latest versions typically use the same range. Most base scores now fall between 300 to 850. However, how they categorize those numbers into tiers like "good" or "exceptional" can vary.
- VantageScore tiers: This model uses categories such as superprime, prime, near prime and subprime. Scores of 781 or higher fall into the top tier of this scoring model.
- FICO categories: This model uses labels like exceptional, very good, good, fair and poor. An exceptional score has a score of 800 or higher.
- Historical models: Older versions of VantageScore used a scale that went up to 990, but most modern lenders have moved to the 850-point scale.
- Specialized scores: FICO offers specific versions for auto loans and credit cards that may have ranges from 250 to 900.
Ways for consumers to interpret differences between the two
It's normal for there to be a gap between your scores, and there's no need for alarm if they don't match. One way to use this information is to look for trends over time. If both scores are moving up, it could be a sign that your credit habits are helping you build a stronger profile.
Monitoring your credit report may reveal errors. Disputing errors or inaccuracies that might be lowering your score may help get them corrected. If you’re looking to start monitoring your credit, Credit Journey® is a free online tool offering access to your credit score and personalized score improvement plans provided by Experian—no Chase account required.
The bottom line
Both FICO and VantageScore can be reliable tools designed to help you understand your credit profile. Since lenders could use either one, it may be helpful to keep an eye on both. By maintaining positive habits like making payments on time and keeping your balances low, you may be able to help improve your standing across all scoring models over time.
