What’s Better? FICO Score vs. VantageScore

There are two major types of credit scores you should know about: VantageScore and FICO Score. At Kikoff we provide you with a VantageScore 3.0 credit score, but we expect you to see improvements in all other types of credit scoring models, including FICO.

But what’s the difference between VantageScore 3.0 and FICO Score?

FICO Score and VantageScore are both credit scoring models used by lenders to assess a borrower’s creditworthiness.

Here are the key differences between FICO Score and VantageScore:

  1. FICO and VantageScore are competing companies:
    • FICO Score: FICO is developed by one company, Fair Isaac Corporation (FICO).
    • VantageScore: VantageScore is a joint development by the three major credit bureaus: Equifax, Experian, and TransUnion. It was introduced to compete against the FICO Score.
  2. They both report a scoring range between 300 – 850 but some can go a little higher with the newer VantageScore 5.0:
    • FICO Score: Scores typically range from 300 to 850.
    • VantageScore: VantageScore 3.0 also has a score range of 300 to 850. However, VantageScore 5.0 introduced a new “Experian Boost” feature that allows some consumers to get above an 850 credit score.
  3. They have different credit factors calculations:
    • FICO Score: FICO reports that the following factors impact your score: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).
    • VantageScore: VantageScore reports factors are similar to FICO in that they include payment history, credit age and mix, credit utilization, recent credit behavior, and available credit. However, VantageScore 3.0 may calculate late payments less heavily than the FICO Score.
    • FICO Score: FICO typically dings you more for late payments. And your credit score can be more affected if the late payment is recent and more severe.
    • VantageScore: Frequency and severity of late payments also affect VantageScore credit scores but they may not affect credit scores as heavily as FICO does.
  4. VantageScore is more accessible and easier to qualify for:
    • FICO Score: You need to have at least one trade line that’s at least 6 months old. An example trade line is a credit card, loan, line of credit, etc).
    • VantageScore: VantageScore has a more consumer-friendly model. Like FICO, you need at least one trade line; however, that trade line age doesn’t matter. VantageScore also scores people who haven’t used their trade line in 6 months. Additionally, scores can be calculated in as little as one month. That’s really fast.

Overall, you have more than one credit score.

It’s important to note that both FICO Score and VantageScore are widely used by lenders. However, the specific version and scoring model used can vary among lenders. As a result, it’s important to know that you have different credit scores and you should monitor your credit reports and scores regularly.

The information provided in this blog post is meant for informational purposes only and does not constitute financial advice. Kikoff Inc. is a financial technology company and not a bank. The Kikoff Secured Credit Card is issued by Coastal Community Bank, Member FDIC. Terms and conditions apply & individual results may vary. Make consistent on-time payments to maximize credit building potential.  Credit factors outside Kikoff, like other account balances or delinquencies, can have an impact on credit building progress.  Subject to approval via identity verifications and subject to terms and conditions. Kikoff Credit Account reported line of credit intended exclusively for credit building purposes & can be used to finance the purchase of monthly Credit Service plans and/or digital educational material via the Kikoff Store. For more information, visit our Terms and Conditions and Privacy Policy. We report to the major credit bureaus: Equifax, Experian, and TransUnion. Features, tradelines, bureau reporting, & pricing may vary depending on plan purchased. This post may contain marketing messages and advertisements in compliance with the CAN-SPAM Act. Please refer to our Secured Card and Credit Account Terms for detailed product disclaimers.

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