The five categories that contribute to a FICO® Score®, include: The categories that make up a FICO® Score® and a VantageScore® are also different, as well as how credit information is weighed within each. How the factors used to calculate credit scores differ This means you can get two different credit scores if you request your credit report from two bureaus at the same time. They might also provide this information at different times. Lenders don’t always share the same consumer information with the main credit reporting agencies. Why credit scores from the three credit bureaus may differ This means those who are new to credit may not have a credit score with FICO® and are more likely to have one with VantageScore®. VantageScore® only requires one or more credit accounts to be open for at least one month, according to Experian, and the reporting of one account within the past two years. FICO® Scores also require these accounts to be reported to the three national credit bureaus within a six-month period, according to FICO. Before you can have a FICO® Score®, you must have one or more credit accounts open for six months. So, if you have a FICO® Score® of 600, it doesn’t mean you’ll have a 600 VantageScore® too.įor instance, the two models differ based on how they score the length of credit history. This can result in slightly different scores. If you’ve ever seen both of your scores and questioned, “Why is my VantageScore® lower than my FICO® Score?” or vice versa, it’s because there are differences in how categories and information are weighed within the scoring models. There are also five tiers of the VantageScore® range, according to Experian, but the designations and the numbers for each level differ compared to FICO®.ĭifferent factors that affect your credit score There are five tiers of the FICO® Score range. If you are curious whether you’ll qualify for a credit card, you can check your credit score first, and also see if you prequalify. This is because each credit scoring model applies varying levels of importance to different measures on your credit report. Using VantageScore® 4.0, you need to score between 700-749 to get a “good” rating, according to Experian. While each model now uses the same credit range of 300-850, (the first two versions of the VantageScore® model used a 501-990 range), the meaning of a person’s score can vary between companies.įor instance, what qualifies as a “good” credit score in FICO® Score is 670-739. Also, both companies create credit scores, however, the models they use to calculate them differ. Both companies have the same purpose: to help lenders evaluate applicants to predict the likelihood that they will pay their bills. FICO and VantageScore® are the two largest credit scoring models in the U.S. There are two main credit scoring models used in the U.S.: VantageScore® and FICO® Score (which stands for Fair Isaac Corporation). Differences between FICO® and VantageScore® ranges This information is then used to determine if you qualify for new credit, such as a mortgage, auto loan, or a new credit card. Your credit score is calculated using credit scoring models and is used by creditors to predict how likely you are to pay your bills on time. While your credit score is only three numbers, this trio of digits can pack a major punch when it comes to your finances. The categories used to calculate credit scores and how they are weighed can differ between the two companies. 1īoth credit scoring models use the same credit range of 300-850, but the meanings of the scores vary between companies. There are two main credit scoring models used in the U.S.: VantageScore® and FICO ® Score®.
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