FICO vs Vantage Credit Scores How to Understand the Difference

As we discussed in a previous post your credit score is made up of five main categories. This post is to discuss the differences between your FICO vs your VantageScore model.

The information for each category is collected from your credit report, furnished by the three major credit bureaus, Equifax, Experian and Transunion. That information is then used by FICO to generate a credit score.

So why does the score that your lender sees differ from the one you may see on a monitoring platform like Credit Karma? For starters, your credit score may fall into one tier For FICO and another for Vantage.

FICO credit scores fall into these five tiers

  • FICO scores range from 300 to 850
  • Exceptional: 800 to 850
  • Very good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Very Poor: 300 to 579

Vantage credit scores fall into these four tiers:

  • Vantage scores range from 300 to 850
  • Excellent: 781 to 850
  • Good: 661 to 780
  • Fair: 601 to 660
  • Poor: 300 to 600

So Which Score Do Lenders Use?

The truth is, more than 90% of lenders trust FICO as a fair and reliable method to measure whether a person will pay back their loan on time. Which I’m sure you may know is likely not the same as what you see on your credit monitoring app. But that doesn’t mean to ignore your favorite free app.

What now? Well, free credit scores are available and they’re here to stay. That’s the great news … but how if FICO is so reliable, where did Vantage scores even come from?

The Vantage credit scoring model was created by none other than … wait for it … the credit bureaus. That’s right. So your Vantage score may be higher than your FICO score, because it favors the credit bureaus.

They may differ, drastically, but they still have the same end goal. To determine the likelihood of a borrower defaulting on their loan within 24 months. If you are becoming an adultier adult and keeping up with your scores to better your financial picture, you’re golden. If you want to see what the lenders see in order to get approved for a loan, you’ll want to know exactly where you stand.

To compare credit monitoring services to know which suits you best on your financial journey, click here to compare credit monitoring companies. We’ve done the heavy lifting for you so you can find a company that fits your needs and gives you the best options.

In short, by consistently using FICO Scores, lenders take on less risk, and you are able to get faster and fairer credit approvals, terms, and interest rates.

To get the facts about your credit score and start making improvements today contact Millennium Financial Services to book a free consultation.

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