VantageScore^® vs. FICO^®: What’s the Difference?

VantageScore vs. FICO: What's the Difference?

Here's a closer look at the main differences between the credit scores from VantageScore and FICO:

Lender Use

Lenders and other organizations that use credit scores, such as property managers and card issuers, can choose which score (or scores) to use.

Lenders might test brand-new scores from VantageScore or FICO, but they'll often use older scoring models for most decisions until they can figure out if switching to a new model is worth the cost.

One exception is within the mortgage industry, where Fannie Mae and Freddie Mac underwriting guidelines largely dictate which credit score models most mortgage lenders use. Historically, lenders used older FICO models. However, lenders today can also choose to use the VantageScore 4.0 or FICO 10T scores.

Learn more: Which Credit Score Is Most Important?

Latest Models

VantageScore creates a single tri-bureau model that can be used with a credit report from Experian, TransUnion or Equifax. Its latest models are:

• VantageScore 4.0
• VantageScore 4plus
• VantageScore 5.0

FICO creates bureau-specific scoring models. For example, with the latest base FICO^® Score 10, there are actually three slightly different FICO^® Score 10 models—one for each of the major credit reporting agencies.

FICO also releases suites, such as the FICO^® Score 10 suite:

• Base FICO^® Score 10
• FICO^® Score 10T
• FICO Auto Score 10
• FICO Bankcard Score 10
• FICO^® Score 10 BNPL
• FICO^® Score 10 T BNPL

The auto and bankcard scores are industry-specific scores that FICO makes for auto lenders and card issuers. The scores with "T" and "BNPL" in their names can consider trended data and buy now, pay later data, respectively.

FICO also offers several credit scores that can consider alternative data, such as utility bill payments or banking data. These include the FICO^® Score XD and UltraFICO^® Score.

Credit Score Ranges

With all these credit scoring models, a higher score indicates you're less likely to miss a payment, which is why creditors are willing to offer people with high scores the best rates and terms.

The base and alternative data FICO^® Scores range from 300 to 850, while FICO's industry-specific scores range from 250 to 900.

The latest VantageScore 4.0, 4plus and 5.0 scores use the same 300-to-850 range as base FICO^® Scores.

What qualifies as a good credit score can vary from one creditor to another. However, on the 300-to-850 scale, a score of at least 670 (for FICO) and 661 (for VantageScore credit scores) will generally qualify as having good credit.

Learn more: What Are the Different Credit Score Ranges?

Scoring Factors

Most FICO and VantageScore credit scoring models only consider the information that's in one of your credit reports when calculating a score. Each model might use unique factors or weighting, which is why you generally get different scores when different models score the same credit report.

However, most models place somewhat similar levels of importance on information from five scoring categories:

• Payment history: Whether you've made on-time payments, late payments, have accounts in collections, defaulted on debts or declared bankruptcy.
• Credit usage: Your credit utilization rate, or the amount of available credit you're currently using with your revolving credit accounts, such as credit cards. To a lesser extent, the amount you owe on installment loans is also important.
• Length of credit history: How much experience you have managing credit accounts.
• Types of accounts: Whether you have experience using and paying off different types of credit accounts.
• Recent activity: Whether you've recently applied for new accounts that led to hard inquiries.

Models that consider alternative data can also evaluate data that isn't in your credit report. For example, the VantageScore 4plus and UltraFICO^® Score allow you to connect a bank account so the model can consider your banking history alongside your credit history when calculating a score.

Learn more: How Is Your Credit Score Calculated?

Minimum Credit History Required

For FICO to create a credit score based on one of your credit reports, you'll need to have a credit account (or "tradeline") that's at least six months old and activity on a tradeline during the previous six months (they don't need to be the same tradelines).

You may be scoreable by VantageScore as long as your credit report has at least one account in it, even if the account is less than six months old. You also might qualify for a VantageScore credit score if you have a collection account or bankruptcy filing.

Additionally, neither credit scoring agency will score a credit report if the report indicates the consumer is deceased.

Learn more: How Long Does It Take to Get a Credit Score After Opening an Account?

Treatment of Collection Accounts

Unpaid collection accounts can hurt your FICO and VantageScore credit scores, but collection accounts are treated differently depending on the type of account, whether it's been repaid and the specific scoring model.

For example, FICO^® Scores 9 and 10 ignore paid collection accounts and put less importance on unpaid medical collections than other types of unpaid collections. (Paid medical collection accounts, unpaid medical collection accounts under $500 and unpaid medical collection accounts under one year old no longer appear on your credit reports and thus are not part of any credit score calculations.)

VantageScore 4.0, 4plus and 5.0 ignore paid collection accounts and unpaid medical collection accounts, regardless of their balance.

Trended Data

VantageScore 4.0, 4plus and 5.0, as well as FICO 10T and FICO 10 T BNPL, consider trends from the last 24 months of your credit report. For example, rather than only calculating the current credit utilization rate from your credit cards, the scores might consider whether your utilization rate has risen or fallen recently.

Credit scores may also consider trends in your loan amounts, scheduled payment amounts and other information related to how you manage credit accounts.

Learn more: What Is Trended Data in Credit Scores?

Which Score Is Most Accurate?

Different credit scores aren't necessarily more or less accurate than one another. When FICO and VantageScore develop new scores, they try to find ways to increase the model's predictive performance.

Sometimes, that might mean considering different types of data or weighting information differently. They may also train the models on recent anonymized data in an attempt to reflect the current economic environment and consumer behavior.

As a result, newer scores might be better at predicting which people are more likely to miss a bill payment. However, that doesn't mean older scores aren't still largely accurate.

How to Check Your Credit Scores

You can check one or more of your credit scores by looking for free credit score tools or paying for your scores. Organizations that commonly offer credit scores include:

• Banks
• Lenders
• Credit card issuers
• Money management websites
• Credit counseling organizations

No matter the source, the scores should be the same if the scores are generated at the same time, using the same underlying credit report and the same scoring model. However, you'll often see different scores because companies may offer you scores based on different models, credit reports and updating frequencies.

How to Check Your VantageScore Credit Score

The VantageScore website lists some of the banks, lenders and websites that you can use to check your VantageScore 3.0 or VantageScore 4.0 credit scores. The newer VantageScore 4plus and 5.0 aren't listed on these sites yet.

How to Check Your FICO^® Score

Many creditors, some finance websites and FICO offer free access to one of your FICO^® Scores. For example, you can get your FICO^® Score 8 for free from Experian with a free account. Your membership includes daily updates when you check your FICO^® Score, and Experian breaks down how recent changes in your credit report can impact your score. With Experian, you'll also see which factors are helping or hurting your FICO^® Score the most.

How to Improve Your Credit Scores

Although there are many differences between FICO and VantageScore credit scores, and between different scores from one of the companies, the same basic steps can improve all your scores.

Partially, this might be because most scores use the same underlying credit report data to try to predict the same thing. So, focusing on what winds up in your credit report can be one of the best ways to improve your scores. In particular, try to:

• Pay bills on time. Making on-time payments is one of the best ways to improve all your credit scores. If you miss a payment, try to bring the account current within 30 days to keep the late payment from hurting your scores.
• Maintain a low credit utilization rate. Using a small portion of your available credit limit on your credit cards can also help your credit scores. If you use more than 30%, try to pay down part or all of the balance early.
• Keep credit accounts open. Having a long history with credit accounts can also help your scores. Closed accounts might continue to impact age-related scoring factors while they're in your report, but closed accounts fall off your credit reports within seven to 10 years.
• Bring past-due accounts current. Paying off past-due and collection accounts won't necessarily remove them from your credit history right away, but paid accounts are better than accounts with an outstanding balance.

The basic steps are simple, even if they're not always easy.

Learn more: Tips to Improve Credit

Frequently Asked Questions

Credit Scores Almost Always Differ, So Focus on Your Reports

Your FICO and VantageScore credit scores are usually different because the two companies have different approaches to credit scores and they offer multiple types of scores. However, most scores only consider what's in your credit report, and the scores tend to move up or down in tandem over time.

If you want to build and maintain good credit regardless of the scoring model, focus on using credit responsibly and paying bills on time. And if you want to monitor your progress and get personalized tips, get your FICO^® Score and credit report for free from Experian