Should you track both VantageScore® and FICO® scores?
Quick insights
- Lenders may use different credit scoring models to evaluate your creditworthiness when you apply for a loan or credit card.
- Monitoring your VantageScore or FICO score may help you understand how different financial behaviors impact your overall credit profile.
- Reviewing your credit scores is a common way to stay informed about your financial health and track your progress over time.
There’s more to your credit profile than a single score. Because lenders use different methods to evaluate your creditworthiness, or how likely you are to pay back a loan, tracking both your VantageScore and FICO scores may help provide a better picture of your financial standing. Monitoring both may also help you prepare for various lending decisions, from credit cards to mortgages.
Why track both credit scores?
A credit score is a number that helps assess your creditworthiness and is one of several factors lenders may consider when making a lending decision. Because there’s no single "official" credit score, many people find that their numbers vary between different platforms.
Monitoring both models may help you get a broader sense of how your credit could appear to lenders. If you only track one, you might miss an error that appears on a different report. By staying on top of both, you may be able to better manage your credit profile.
What does each model tell you?
VantageScore and FICO are two separate companies that produce popular credit-scoring models used by lenders. While both are used to predict the likelihood that you will pay your bills on time, they weigh your financial habits in slightly different ways.
- Scoring requirements: VantageScore may be able to generate a score with just one month of credit history. FICO typically requires at least six months of history on an account to produce a score.
- Late payment impact: Both models view late payments as a significant factor. However, they may differ in how they treat a single late payment versus multiple missed payments over time.
- Credit utilization: This term refers to the amount of credit you use compared to your total limits. Both models generally prefer to see a lower credit utilization, as it may indicate responsible debt management.
- Hard credit checks: When you apply for a loan, a lender performs a hard credit check, which may have an impact on your score.
What should you do if your scores differ?
It is common for your VantageScore and FICO scores to be different even if they are checked on the same day. These variations often happen because the models use different math or because the credit bureaus—Experian™, Equifax® and TransUnion®—have slightly different data on file.
If you notice a large gap between your scores, you may want to look closely at your credit reports for any errors. Monitoring your credit report may reveal inaccuracies or signs of potential fraud or theft. Catching these early on and reporting them to the credit bureau(s) may impact your credit score.
If you're looking for a streamlined way to stay on top of things, Chase Credit Journey® is a free tool available to anyone 18 or older with a valid U.S. address and Social Security number (SSN). You don't even need a Chase account to use it. It gives you access to your credit score and personalized score improvement plans provided by Experian, which can help you better understand why your numbers might be moving.
Which score matters most for major loans?
When you’re preparing for a major purchase, such as a home or a car, the model that matters most is the one your specific lender chooses to use. While FICO is historically the most common model for mortgages, many lenders now evaluate VantageScore for personal loans and credit cards.
Instead of focusing on a single number, it may be helpful to look at the general range where your scores fall. VantageScore and FICO credit score models both range from 300 to 850 and classify credit scores into tiers. While lenders consider many factors when making lending decisions, a score in a higher range may increase your chances of qualifying for credit products with favorable terms, but approval is not guaranteed.
Common practices for monitoring and improving
Since credit scores can fluctuate based on your monthly activity, consistent habits can help build or rebuild your standing over time.
- Paying bills promptly: Making payments on time every month may help build your credit score over time. Even one missed payment could lead to a negative mark on your report.
- Keeping balances low: Credit scoring models typically look at how much of your available credit you are using. A credit utilization ratio of 30% or below is generally considered favorable.
- Reviewing reports regularly: You may want to check your credit reports to ensure accurate reporting and that all listed accounts actually belong to you.
- Using planning tools: You might consider using a tool like Credit Journey® to help you understand how specific actions, like paying down a balance, could impact your numbers.
In conclusion
Because credit scores are just one factor in your credit profile, tracking both VantageScore and FICO models may provide a broader view of your overall credit health. By understanding these scores and maintaining consistent habits, you may find yourself more prepared when applying for various credit products.
