FICO vs Vantage
FICO scores are the giant in the financial industry and for the most part, operated in a space all by themselves for decades. The FICO scoring model was introduced in 1956 and is heavily used to date. In 2006 a newcomer emerged onto the scene with an alternative scoring model called Vantage. It wasn’t until 2013 when the Vantage 3.0 became a formidable alternative to the now 10 FICO scoring models…
Have you ever wondered why your credit scores on Credit Karma are different than your scores on Experian.com??? The reason is due to the different models used by each company. CK will provide you with a Vantage 3.0 score while Experian provides a FICO 8 version. Below is a brief snapshot of how each model evaluates credit profiles…
The FICO Score's credit scoring formula is based on five categories of information, while VantageScore 3.0 uses six.
FICO Score
35% payment history
30% level of debt/amounts owed
15% age/length of credit history
10% types of credit/credit mix
10% credit inquiries/new credit
Vantage Score 3.0
40% payment history
21% age and type of credit
20% percent of credit used
11% total balances/debt
5% recent credit behavior and inquiries
3% available credit
Bottom line…
From a consumers perspective, the better credit score to consider is the one your bank will use to approve or decline your request for credit. The vast majority of banks will use your FICO scores to make the decision on extending offers. We strongly suggest focusing on this model.