The main difference between FICO score and VantageScore credit score is that they are calculated based on different scoring model. FICO score and VantageScore are created by different companies. FICO, which stands for Fair, Isaac and Company, was created by the two founders including Bill Fair and Earl Isaac in 1956. Thirty five percent of your FICO score is determined by your payment history. Another thirty percent of the FICO score is determined by the debt level. The age of credit history accounts for fifteen percent of the FICO score. The rest of the FICO score is made up by ten percents on the type of credit and ten percents on credit inquiries. The range of a FICO score is in between 350 – 850.
VantageScore, on the other hand, is created by the three credit bureaus including Equifax, Experian and TransUnion. The biggest factor that influence VantageScore credit score is payment history which makes up 40%. The second biggest factors are age and type of credit which accounts for 21% and percent of credit used accounts for 20%. The total balances/debt makes up of 11% of VantageScore credit score. The smallest factors that influence the VantageScore credit score are your recent credit behavior and inquiries (5%) and available credit (3%). Like FICO score, VantageScore 3.0 has a credit score range in between 350 – 850. The earlier versions of VantageScore, for example, VantageScore 2.0 use the credit score range of 501 – 990.
As you can see, both scoring models give about the same percentage to payment history and new credit inquiries. However, the biggest difference is on the credit utilization and dredit history and types of credit. For credit utilization, FICO score assigns 30% while VantageScore assigns 45% respectively. In credit history and types of credit, FICO assigns 25% while VantageScore assigns 13% respectively.
Having a higher credit score means you have lesser risk to the lender. There is a larger number of lenders that use FICO score to determine your interest rate. If you don’t know what scoring model the lender is using, you can ask them. You must make sure that the credit report you request is the same as the type of scoring model that your lender is using.
Both FICO score and VantageScore can be requested for free from the 3 credit bureaus. It is advised that you don’t buy credit report online as they may use a different scoring model that does not match with the scoring model that your lender is using. If you request the credit score from the credit bureau, you won’t be required to provide your credit card to request for a free credit report. You can request a free credit report to review it yourself. The lender don’t need you to provide him with your credit report as they can request it themselves from the credit bureaus.