VantageScore® 3.0 vs 4.0: What’s the difference?

Quick insights

• VantageScore 3.0 and 4.0 use many of the same factors to generate a credit score, but how they weigh these factors differ.
• VantageScore 3.0 is usually more widely used and is what you see when you enroll in Chase Credit Journey^®.
• Monitoring your VantageScore can be an important part of maintaining a healthy credit profile.

Your credit score is typically generated using the VantageScore or FICO^® scoring models, both of which contain multiple versions. Below we’ll discuss the differences between two of VantageScore’s most popular models, VantageScore 3.0 and 4.0, and which version you’ll find in Chase Credit Journey.

Introduction to VantageScore

VantageScore, created by the three main credit bureaus—Experian™, Equifax^® and TransUnion^®—is one of the main credit scoring models used by lenders and other entities, such as insurance companies and landlords. It was developed to consider more consumers, accounting for those who are just starting to build credit.

VantageScore has multiple versions of its model, but usually, the most widely used versions are 3.0 and 4.0. Both versions have a credit score range of 300-850, which is similar to other scoring models, like FICOScore^® 8. However, the factors each version considers are weighed differently.

Understanding the factors for VantageScore

VantageScore uses several key factors to help determine your credit score. For both versions (3.0 and 4.), VantageScore considers:

• Payment history—This represents your ability to make your payments on time for things like credit cards and monthly loan installments.
• Depth of credit—This looks at how old your lines of credit are and how long you’ve shown your ability to manage different types of credit.
• Credit utilization—This represents how much of your total available credit limit you use.
• Balances—This includes your current balances across all lines of credit.
• Recent credit—This considers new lines of credit that you have recently either applied for, been approved for and/or have opened. Lenders generally run a hard credit check when you apply for a new line of credit.
• Available credit—This is the total amount of credit you have available to you across all accounts.

Comparing VantageScore 3.0 and 4.0

While both VantageScore 3.0 and 4.0 share key components when generating their score, they have some differences. Let’s review them below.

VantageScore 3.0

When you enroll in Credit Journey^®, a free online tool anyone can use without impacting your score, the type of credit score you see is calculated by the VantageScore 3.0 scoring model.It’s different from 4.0 in that 3.0 will account for bankruptcy, while 4.0 does not.

Additionally, VantageScore 3.0 weighs each  factor in the following ways:

• Payment history (40%)
• Depth of credit (21%)
• Credit utilization (20%)
• Balances (11%)
• Recent credit (5%)
• Available credit (3%)

VantageScore 4.0

This model was released in 2017 to include trended data and predictive modeling, which helps determine your credit behavior over time. It uses other technology, such as machine learning , to create a more specific picture to lenders about a person’s level of risk.

VantageScore 4.0 weighs its factors differently from 3.0, as seen below:

• Payment history (41%)
• Depth of credit (20%)
• Credit utilization (20%)
• Recent credit (11%)
• Balances (6%)
• Available credit (2%)

 Note that Chase Credit Journey does not provide your VantageScore 4.0 credit score.

In conclusion

Regardless of what credit score you’re looking at, with knowledge and tools you may be able to create a healthier credit future for yourself. When you use Credit Journey, you can regularly access your VantageScore 3.0 credit score.