VantageScore® vs. FICO® credit scores: What's the difference?
Quick insights
- VantageScore and FICO score are two credit scoring models that are widely used by lenders.
- Both credit scores give a snapshot of your credit behavior and financial health.
- There are ways you can access both credit scores for free.
When you check your credit score, have you noticed that it appears as your VantageScore or FICO score? You may be wondering what the difference is between these two. Let’s review these two scoring models in detail below.
Factors affecting VantageScore and FICO scoring models
Credit scores are generated by weighing several important factors which help to capture your creditworthiness and overall credit behavior.
Both VantageScore and FICO consider several key components when calculating your credit score. These include:
- Payment history: Timely payments positively impact both VantageScore and FICO scores. Late payments or delinquencies can have a negative impact.
- Credit utilization: Keeping credit card balances low compared to credit limits is important for both scores. High utilization ratios (such as those above 30%) can potentially lower scores.
- Length of credit history: Longer credit history can positively impact VantageScore and FICO scores. A longer credit history could help demonstrate responsible credit management.
- Credit mix: Having various types of credit, such as credit cards, loans and mortgages, is factored into both scores. It shows the ability to manage different types of credit.
- New credit applications: Applying for multiple new credit accounts within a short period can negatively impact both scores because when reviewing your application, lenders run a hard credit check. Several new applications may indicate financial instability or a higher risk of default.
Additionally, public records can affect your score, depending on the version used. For example, the VantageScore 4.0 model does not include public records, but the 3.0 model does. Public records only include bankruptcies.
Differences between VantageScore and FICO scoring models
There are a few key differences between VantageScore and FICO scoring models. The first is how these models categorize credit scores.
For comparison purposes, we will be using the VantageScore 3.0 model and FICO 8 model. While both scores range between 300-850, the way in which these scores are categorized varies. Let’s breakdown the credit score ranges in detail below.
As of May 2024, VantageScore ranges areexperian-vantage-score:
- 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 arefico-credit-scoresfico-credit-scores:
- Exceptional: 800+
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
Additionally, these two scoring models differ in the following ways.
- Calculation method. Despite having similar factors that comprise each score, the way these components are weighted differs between the scoring models. For example, VantageScore weighs credit utilization at 20% while FICO weighs credit utilization at 30%.
- Credit history requirements. VantageScore requires at least one month of credit history to get a credit score, while FICO requires at least six months. This means that individuals with limited credit history may be able to obtain a VantageScore earlier than a FICO score.
- Industry-specific models. FICO offers industry-specific credit scoring models, such as FICO Auto(R) Score, while VantageScore does not.
Though there are some key differences between these two scoring models, both can be helpful to look at when trying to understand your credit behaviors. Being aware of both scores may help you make informed financial decisions.
How to obtain your VantageScore
There are several ways you can obtain your VantageScore. If you want to obtain your score for free without impacting your credit, consider enrolling in Chase Credit Journey®. This is a free online tool anyone, including non-Chase cardmembers, can use. Once you’ve enrolled, you will receive a free credit score and credit report provided by Experian(TM), if available. If you don’t have a credit history, you won’t be able to see a credit score.
Additionally, you can visit the VantageScore website directly and get your score through one of their providers or purchase a credit score through an outside vendor.
How to obtain your FICO score
Some credit card companies and financial institutions provide access to FICO scores on their online platforms or mobile apps. All you need to do is login with your username and password and navigate to your score.
You may receive a free annual credit report from the three main credit bureaus by visiting https://www.annualcreditreport.com/index.action.
In conclusion
Both VantageScore and FICO score are widely used by lenders, financial intuitions and more. Neither model is “better” than the other. Rather, they provide slightly different insights. Both models are a helpful way to assess your current financial standing and can be accessed for free.
