What It Means
VantageScore is a credit scoring model developed jointly by Equifax, Experian, and TransUnion as a competitor to FICO. Like FICO, VantageScore ranges from 300 to 850, but the two models weigh factors differently. VantageScore places more emphasis on credit utilization and credit behavior trends, and can generate a score with as little as one month of credit history (compared to FICO's six-month minimum). VantageScore 3.0 and 4.0 ignore paid collection accounts and weigh medical collections less heavily. While VantageScore is gaining adoption - it's commonly used by free credit monitoring services - FICO remains the dominant model used by most lenders for actual credit decisions.
Frequently Asked Questions
Is VantageScore the same as FICO?
No. While both range from 300-850, they use different algorithms and weight factors differently. VantageScore can generate scores more quickly and treats paid collections differently than most FICO versions.
Do lenders use VantageScore?
Some lenders use VantageScore, but FICO dominates with about 90% of top lenders. VantageScore is more commonly used by free credit monitoring services and for educational purposes.