Why your VantageScore® may be lower than your FICO® score

Quick insights

• VantageScore and FICO score consider similar factors when generating your credit score, but how they weigh these factors differ.
• There may be scenarios where you have a lower VantageScore than FICO score and vice versa.
• Factors that are weighed differently between the two scoring models include payment history, credit history and others.

You may have noticed that you have a few different credit scores, and that those numbers can vary. For example, one lender may look at your VantageScore while another uses FICO during the application process. To help you understand what these scores mean and why they differ, we’ll explain the ways each score is calculated.

How credit scoring models work

Credit scoring models use several key factors to help determine your three-digit credit score. These factors include:

• Payment history—this represents your ability to consistently repay your debts on time.
• Credit utilization—this factor considers the amount of credit you use against your total available credit.
• Length of credit history—this shows how long your accounts have been active and open.
• Credit mix—this represents the various types of credit you may have, such as credit cards, loans and mortgages.
• New credit applications—this factor considers the number of hard credit checks run by potential lenders when you apply for new lines of credit.

How VantageScore and FICO weigh factors differently

VantageScore and FICO score weigh the factors listed above slightly differently. This could be why one score appears to be lower than the other. As of October 2024, here are some examples of how the VantageScore 3.0 and FICO 8 models differ:

1. Credit history

As a matter of fact, VantageScore typically views the start of your credit history as soon as your credit behavior has begun. For example, if you were approved for your first line of credit and began using it within a month or two, this credit activity would be enough to generate your VantageScore. FICO, however, generally requires six months’ worth of credit history before generating your credit score.

VantageScore 3.0 credit age and mix (credit history): 20%

FICO Score 8 length of credit history: 15%

2. Payment history

VantageScore weighs payment history more heavily than FICO. For example, payment history composes 40% of Vantagescore 3.0 while it makes up only 35% of FICO Score 8. Depending on your credit behavior and how timely you make your payments, your scores could vary.

VantageScore 3.0 payment history: 40%

FICO Score 8 payment history: 35%

3. Credit utilization

High credit utilization ratios can negatively impact your credit score while lower ratios (about 30% or less) can have a positive impact. These impacts may affect your FICO score more than your VantageScore given FICO emphasizes credit utilization more in its calculations.

VantageScore 3.0 credit utilization: 20%

FICO Score 8 credit utilization: 30%

4. Data updates

The timing of when your credit data gets reported to the credit bureaus may lead to further differences between your Vantagescore and your FICO score. For example, let’s say you receive a credit report from a credit bureau that uses VantageScore and have not yet received a report that uses FICO. Eventually, you get a credit report from FICO but its data reflects a more updated history. It’s possible that your scores at this time vary.

Why is my VantageScore different from my FICO score?

Because these scoring models weigh their factors differently, it’s possible to have differing credit scores. Some examples of how this could happen include, but are not limited to:

• Credit utilization: You could have a lower FICO score if you have high credit balances.
• Recent credit checks: FICO doesn’t weigh hard credit inquiries as heavily as VantageScore, so if you’ve recently applied for more lines of credit, this could affect your VantageScore more than your FICO score.
• Age of credit: If you close an account that gets reported to a credit bureau using VantageScore, this could appear sooner than in your FICO score, and vice versa.

The bottom line

Both VantageScore and FICO score are widely used credit scoring models that vary in the way they calculate their scores. If you compare the two, you may notice times where one score appears lower than the other. While both score models consider similar factors, they weigh these factors differently, so your VantageScore and FICO score may not be the same. Understanding these factors and how they are weighed to generate your score can be helpful as you build a healthy financial foundation.