FICO (Fair Isaac Corporation) Score and VantageScore are two different credit scoring models used to evaluate an individual’s creditworthiness, but they have some differences in how they calculate credit scores. Here’s a comparison between FICO and VantageScore:

Number of Factors Considered:

   – FICO Score: The FICO Score typically considers five main factors, which are payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries.

   – VantageScore: The VantageScore model examines six factors, including payment history, credit utilization, length and depth of credit history, credit balances, recent credit behavior, and available credit.

Treatment of Available Credit:

   – FICO Score: The FICO Score considers credit utilization, which is the ratio of your credit card balances to your credit limits. However, it does not explicitly factor in “available credit” as a separate category.

   – VantageScore: VantageScore includes available credit as a distinct factor in its model. This factor reflects how much credit you have not used in your credit lines. Having more available credit can positively impact your VantageScore.

Scoring Range:

   – FICO Score: The FICO Score has a scoring range of 300 to 850, with higher scores indicating better creditworthiness.

   – VantageScore: VantageScore also uses a range of 300 to 850 for its scores, mirroring the FICO Score range.

Industry Acceptance:

   – FICO Score: FICO is considered the industry standard and is widely used by lenders when making credit decisions. It is the most recognized credit scoring model.

   – VantageScore: While VantageScore has gained acceptance among lenders, it is not as universally adopted as the FICO Score. However, it is becoming increasingly popular, especially for non-mortgage lending decisions.

Weighting of Factors:

   – Both FICO and VantageScore weigh the factors differently, and the specific algorithms they use are proprietary and not publicly disclosed. This means that the impact of each factor on your credit score may vary between the two models.

It’s important to note that while there are differences between FICO and VantageScore, both scoring models are designed to assess credit risk and help lenders make informed lending decisions. Generally, a good credit profile will yield a high score in both systems.

When monitoring your credit, it can be useful to track your credit scores from both FICO and VantageScore, as they may provide slightly different perspectives on your creditworthiness. Additionally, lenders may use one or both scores when evaluating credit applications, so it’s beneficial to be aware of both.