The Fair Isaac Corporation introduced the first FICO® scoring model to lenders in 1989. According to the company, FICO® scores are used today by 90% of top lenders to make lending decisions. The VantageScore model wasn’t introduced until 2006. It was developed by the three major consumer credit bureaus — Equifax, Experian and TransUnion — to create a “more predictive scoring model that is easy to understand and apply.”
Although both models are designed to predict a consumer’s ability to repay a debt, they do not treat all credit data equally. Let’s explore some of the differences between the two models and why they may matter to you.
VantageScore Solutions and FICO create credit-scoring models that use consumer credit data to generate credit scores — a three-digit number that predicts a consumer’s ability to repay a debt. But they use different methods to calculate scores, which may result in slight scoring differences.
VantageScore and FICO criteria
VantageScore® and FICO® credit-scoring models use data obtained from consumer credit reports to generate credit scores. But the data may affect scores differently depending on which model is being used. Let’s look at the key factors that these models use to calculate your scores.
VantageScore groups credit information into six main categories, but the categories don’t have the same influence on your scores.
- Payment history: extremely influential
- Age and type of credit: highly influential
- Percentage of credit limit used: highly influential
- Total balances and debt: moderately influential
- Recent credit behavior and inquiries: less influential
- Available credit: less influential
FICO groups the information into five categories, with each one representing a percentage of your score.
- Payment history: 35%
- Amounts owed: 30%
- Length of credit history: 15%
- New credit: 10%
- Credit mix: 10%
But again, keep in mind that the exact impact a specific category will have on your credit scores can vary depending on your individual credit history and the specific credit-scoring model used.