What is the difference between FICO and Vantage credit scoring

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In today's world you can't obtain a loan today without a credit score, which is a three digit number that is mostly based on your payment history, outstanding debt and the number and type of accounts. There are two types of credit scoring systems used today to determine your credit score.


The most common one is FICO, which was developed by Fair Isaac Corp. 17 years ago. FICO scores range between 300 and 850 in which most people score in the 600's and 700's. Anything above 700 is considered very good financial health. FICO scores are calculated using the following model: 300 baseline points,193 points for payment history (35%),165 points for outstanding debt (30%),82 points for credit history (15%),55 points for credit inquiries (10%),55 points for types of credit (10%), for a total of 850 points. Under FICO, each credit reporting agency uses a different method for calculating your credit worthiness.

The Vantage scoring system is the second type developed recently by the 3 major credit bureaus. They claim it will make it easier for lenders to determine a consumer's credit risk and will reduce the large score variations that are common among the three credit bureaus. Unlike other credit scores, the Vantage Score model applies the same algorithm to each of the three credit reporting agencies data. Generally, under this scoring system the following model is used to calculate your score: payment history 32%, utilization 23%, balances 15%, depth of credit 13%, recent credit 10%, available credit 7%. Credit scores range from 501 to 990, with anything above 900 considered "A Credit", 800 to 900 "B Credit", 700 to 800 "C Credit" and so on.

You can order your free annual credit report online at www.annualcreditreport.com or by calling (877) 322-8228. The credit reporting agencies are required by law to provide you with a free credit report once a year, however you will have to pay a fee to view your credit score.

Disclaimer: The above information was written in good faith but we can not guarantee accuracy. If you feel our information is inaccurate please email us at [email protected].