VantageScore vs. FICO: How To Demystify Your Credit Scores

Knowing the difference between your VantageScore and FICO score can be the difference between getting the loan you want or being denied. Since credit scores fluctuate between reporting bureaus, variations in VantageScore and FICO categories, and even reporting metrics, monitoring your credit can feel overwhelming and frustrating.

We break down the differences between these two scoring types, suggest the best credit monitoring services, and explain how different agencies evaluate your credit. If you’re ready to take control of your credit, keep reading for everything you need to know.

Is FICO or VantageScore more important?

While VantageScore is gaining traction and viability, 90% of lenders still look at FICO to determine your creditworthiness. Since most credit monitoring services offer VantageScore insights, there’s likely a disconnect between what you’re seeing on your monitoring app and what a lender sees. That’s why your monitoring service might give you an acceptable score, but you’re still being denied credit.

Why is my FICO score and VantageScore different?

FICO and VantageScore have several determining factors that can make them different when you view them at any given time. First, FICO reports over a 45-day period, while VantageScore reports over a 14-day period. You need to have a credit history for a FICO score, but it can factor into both scores. FICO uses five categories of calculating metrics, while VantageScore utilizes six to determine your score.

Because of the variations in reporting data, reporting time, and the different agencies that report to your credit, you could potentially see a myriad of different scores. If you’re wondering what you need to get a loan, focus on your FICO score first. You could also ask the company you’re applying to what score they use and from which agency. For example, a loan company may be looking at your TransUnion FICO score rather than your Experian.

FICO score explained

Your FICO score is composed of five elements determined by what is in your credit report. The reporting agencies collect data and categorize them into these areas to determine your history. The history is then taken by the FICO scoring system and given a numerical value based on a set of percentages. There are several types of FICO scores, including a numerical version, auto lending, and credit card lending, to name a few.

• Payment history (35%) shows how often you’ve paid debts on time or late. It goes back to the beginning of your credit history.
• Amounts owed (30%) is how much you currently owe to other creditors. Combined with your reported income, a lender may determine you owe too much to pay the loan they’re considering for you.
• Length of credit history (15%) helps a lender determine how long you’ve been utilizing your credit.
• New credit (10%) details your recent credit activity. This will show how you’re actively using your credit in the short term.
• Credit mix (10%) lists how much credit you currently have available to you, whether your credit card is paid off or maxed out.

What is a FICO score vs. credit score?

FICO score is a type of credit score, but not all credit scores are FICO scores. Think of it like phones: all iPhones are smartphones, but not all smartphones are iPhones. This means that while your FICO score counts as a type of credit score, it’s not the only one available.

You can sign up for the best free credit monitoring to keep an eye on your score. Some free credit monitoring services — like myFICO and Experian — even include FICO monitoring. Most offer you ways to build your credit, which helps if you’re worried about needing to increase your score.

What is a good FICO score?

FICO runs from 300-850, and the higher you are, the better off you are. Anything over 670 is considered good, while anything under 580 is considered poor. If you want to have an easy time with loans or credit checks, try to keep your FICO score at 740 or above.

FICO score categorization	FICO score ranges
Poor	300–579
Fair	580–669
Good	670–739
Very good	740–799
Exceptional	800–850

VantageScore explained

Unlike FICO, VantageScore doesn’t give an exact breakdown of how what is listed in your credit report calculates your score. Instead, it allows you to view what it considers important from most to least. For instance, your payment history is one of the most important aspects in calculating your VantageScore, while how much available credit you have isn’t as important.

• Payment history (extremely influential) details about whether you are usually on time with your credit payments or if you regularly pay them late.
• Age and type of credit (highly influential) favor mixed credit types that have been in good standing for a long period. The older your credit history, the better. Also, types of credit, like student loans, are generally considered less important to lenders than a car loan or mortgage (but they still matter).
• Percentage of credit limit used (highly influential) outlines how much you owe other creditors so that current or potential lenders can determine if they think you’ll be able to pay them back or not.
• Total balances and debt (moderately influential) are a breakdown of what debt you have and the balances on each. So if a lender sees you have less than a year until your car is paid off, it looks better than if you just bought it.
• Recent credit behavior and inquiries (less influential) show items like newly opened credit cards as well as what other lenders are inquiring about your credit. Hard inquiries are when a potential creditor pulls your file; this impacts your credit score.
• Available credit (less influential) is the amount of credit that is readily available to you either through credit card balances or other forms of credit.

Is my VantageScore my credit score?

No, your VantageScore isn’t your one and only credit score. If you’re looking at a credit monitoring service like CreditKarma and see a number, it isn’t the only number determining your score. In fact, VantageScore has undergone several iterations of itself. VantageScore 4.0 is the most recent version and may take a while to be adopted across the board.

What is a good VantageScore?

Your VantageScore falls between 300-850, and the higher it is, the more likely you are to be accepted when applying for new credit. Most scores under 500 are likely ineligible for credit, while scores above 600 are acceptable. You’ll have more options, lower interest rates, and better approval odds if your VantageScore stays above 660.

VantageScore categorization	VantageScore ranges
Poor	300–499
Fair	500-600
Good	601-660
Very good	661-780
Exceptional	781-850

FAQs

Bottom line:

There are various FICO and VantageScore types, all of which determine your creditworthiness. While this can be frustrating, knowing which to look at can help you monitor your credit based on your goals. Knowing your credit score means you’re always prepared, whether you’re looking for a dream apartment or ready for that new car.

If you don’t know where to start with your credit, check out the best credit monitoring services that we’ve tested. Some have many features that help you build credit, while others are simple and just allow you to keep track of it. Whatever your needs, you’ll find a good fit.