Vantage vs FICO Score: The Key Differences and Which One You Should Use

Introduction

Your credit score is a number that lenders use to assess your creditworthiness and determine whether or not to approve you for a loan. There are two main types of credit scores: VantageScore and FICO Score. Both scores are based on your credit history, but they use different formulas and data sources. As a result, your VantageScore and FICO Score may not be the same.

VantageScore vs. FICO Score: What's the Difference?

The main difference between VantageScore and FICO Score is the data sources that they use. VantageScore uses data from all three major credit bureaus (Experian, Equifax, and TransUnion), while FICO Score uses data from only one credit bureau (Experian). This difference can lead to differences in your VantageScore and FICO Score, especially if you have different credit information on file with different credit bureaus.

Which Credit Score Should You Use?

Both VantageScore and FICO Score are widely used by lenders, so you should be aware of both scores. However, there are some cases where one score may be more important than the other. For example, FICO Score is typically used for mortgage applications, while VantageScore is often used for credit card applications.

Here are some additional key differences between VantageScore and FICO Score:

• Scoring range: VantageScore has a scoring range of 300-850, while FICO Score has a scoring range of 300-850.
• Model: VantageScore uses a more recent model than FICO Score, which may make it more predictive of your creditworthiness.
• Factors: VantageScore and FICO Score consider different factors when calculating your score. VantageScore places more emphasis on recent credit activity, while FICO Score gives more weight to your long-term credit history.

Pros and Cons of VantageScore vs. FICO Score

VantageScore

Pros:

• Uses data from all three major credit bureaus
• More recent model
• Places more emphasis on recent credit activity

Cons:

• Not as widely used as FICO Score
• May not be as predictive of your creditworthiness as FICO Score

FICO Score

Pros:

• Widely used by lenders
• More predictive of your creditworthiness than VantageScore
• Gives more weight to your long-term credit history

Cons:

• Uses data from only one credit bureau
• Older model
• May not be as reflective of your current credit situation as VantageScore

Which Credit Score Is Right for You?

The best credit score for you depends on your individual circumstances. If you are applying for a mortgage, you will likely need to use a FICO Score. However, if you are applying for a credit card or other type of loan, you may be able to use either a VantageScore or FICO Score.

Here are some tips for choosing the right credit score:

• Check with the lender to see which score they use.
• Compare your VantageScore and FICO Score. If there is a significant difference, you may want to contact the credit bureaus to dispute any inaccurate information.
• Monitor your credit reports regularly to make sure that they are accurate and up-to-date.

Frequently Asked Questions (FAQs)

1. What is a good VantageScore?

A good VantageScore is considered to be 661 or higher.

2. How can I improve my VantageScore?

You can improve your VantageScore by paying your bills on time, keeping your credit utilization low, and avoiding opening new credit accounts too often.

3. What is a good FICO Score?

A good FICO Score is considered to be 670 or higher.

4. How can I improve my FICO Score?

You can improve your FICO Score by the same methods as you would improve your VantageScore.

5. Which credit score is more important?

FICO Score is typically more important than VantageScore, but both scores are widely used by lenders.

6. How often should I check my credit scores?

You should check your credit scores at least once per year. You can get free copies of your credit reports from each of the three major credit bureaus at annualcreditreport.com.

Conclusion

VantageScore and FICO Score are two of the most widely used credit scores. Both scores can be used to assess your creditworthiness, but they use different data sources and formulas. As a result, your VantageScore and FICO Score may not be the same. It is important to be aware of both scores and to understand how they are used by lenders.