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Types of lenders that use VantageScore® 3.0

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    Quick insights

    • VantageScore is one of the credit scoring models that are widely used by lenders.
    • Many lenders, including banks and mortgage providers, use VantageScore 3.0 to help determine approvals, loan terms and more.
    • Your VantageScore may be different from your FICO® score for a few different reasons, including the way in which your score gets calculated.

    Whenever you apply for a line of credit, your lender runs a hard credit check and sees your credit report and credit score. Many times, the score they see is determined by the VantageScore 3.0 model. Let’s explore what this score means and how it’s used.

    Understanding VantageScore 3.0

    VantageScore 3.0 is a credit scoring model developed by the three major credit bureaus—Experian™, TransUnion® and Equifax®. Its purpose is to provide a snapshot of a person’s creditworthiness, i.e., their ability to repay their debts on time, by generating a three-digit number (your credit score). Within this scoring model, your score can range from 300-850 and falls into specific credit score ranges that help you understand the health of your credit.

    Which lenders use VantageScore 3.0?

    VantageScore 3.0 is one of the most widely used credit scoring models. Lenders that use VantageScore 3.0 can include, but are not limited to:

    • Banks and other financial institutions: These entities may look at your VantageScore as part of the application process of opening a new bank account or line of credit.
    • Utility companies: Your VantageScore may help a utility company, such as your cell phone provider, determine rates.
    • Landlords: When applying for a lease, your potential landlord may run a credit check to view your VantageScore to help them determine your risk as a candidate.
    • Mortgage providers: A mortgage provider may use VantageScore 3.0 to help make credit decisions, such as approvals and credit limits.

    Depending on your financial institution, you may be able to view your VantageScore for free. For example, when you enroll in Chase Credit Journey® — a free online platform anyone, including non-Chase cardmembers can use—you can view your VantageScore provided by Experian for free without impacting it.

    Who uses VantageScore 3.0?

    In addition to lenders, entities like utility companies and telecommunication providers may use VantageScore 3.0 to make decisions about deposits, terms and more. Landlords may also run a soft credit check to evaluate a potential tenant’s risk. Finally, some employers may run a soft credit check as part of an employee background check using a third-party agency that may use VantageScore 3.0.

    How is VantageScore different from FICO?

    Unlike FICO scores, VantageScore account’s for a person’s credit history almost right away (just one month of credit history is required) and doesn’t require six months’ worth of credit history to generate a credit score. Additionally, the credit score categories differ between the two in the following ways:

    As of May 2024, VantageScore ranges areexperian-vantagescore:

    • Excellent: 781 to 850
    • Good: 661 to 780
    • Fair: 601 to 660
    • Poor: 500 to 600
    • Very Poor: 300 to 499

    As of May 2024, FICO score ranges aremyfico-credit-scores:

    • Exceptional: 800+
    • Very Good: 740 to 799
    • Good: 670 to 739
    • Fair: 580 to 669
    • Poor: 579 and below

    Why is my VantageScore different from my FICO score?

    You may have noticed that your VantageScore and FICO scores appear to be two different numbers. There are a few reasons for this, including but not limited to:

    • Different scoring algorithms: VantageScore and FICO use different calculations and weigh credit behaviors differently. For example, VantageScore weighs payment history more heavily than FICO.
    • Variation in data: While both scoring models use similar information, the timing of the data collection may vary, so one scoring model may include activity that the other still does not, affecting your credit score.
    • Different credit score ranges: As outlined above, the way these two scoring models categorize credit scores differs.
    • Credit history: Unlike FICO, VantageScore does not require a six-month minimum credit history to generate your credit score.

    The importance of monitoring your VantageScore

    Your credit score can be an important part of your financial health, as it can help determine whether you get approved for future lines of credit and what the terms of those lines of credit are. Monitoring your credit score can help you track your current credit behaviors and give you insight into where you may need to adjust. Remember, you can check your VantageScore anytime for free when you enroll in Credit Journey®. You can also set credit score goals using the credit improvement feature to receive a personalized action plan provided by Experian.

    Regularly checking your score can also help you look out for signs of potential fraud or identity theft, which can negatively impact your score.

    The bottom line

    Many lenders and entities use VantageScore 3.0 to have a snapshot of your credit behavior, which can help them understand your ability to repay your debts on time. Understanding and monitoring your VantageScore can be proactive ways to help improve your overall credit profile. 

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