FICO vs. VantageScore: What You Need to Know

How FICO and VantageScore Are Similar

“Both scores matter—but they’re not the same.”

Though they come from different companies, FICO and VantageScore have similar core factors:

• Payment History: Your track record of on-time payments is a priority for both models.

• Credit Utilization: The amount of credit you’re using compared to your limit is key. Aim to keep it under 30% to maintain a strong score.

• Length of Credit History: A longer history can improve both scores, as it reflects stability.

• Credit Mix: Both models value a diverse range of credit types—like credit cards, mortgages, and loans.

• Recent Credit Inquiries: Multiple applications for credit within a short time frame can impact both scores.

💼 Tip
Maintaining a healthy mix of credit accounts and paying on time will positively affect both your FICO and VantageScore.

Key Differences Between FICO and VantageScore

“Small differences that could impact your credit strategy.”

While similar, FICO and VantageScore have their own approach to evaluating creditworthiness:

• Credit Inquiries: FICO provides a 45-day window for rate shopping, where multiple inquiries are treated as one. VantageScore only offers a 14-day window for the same.

• Late Payments: VantageScore weighs late mortgage payments more heavily than other types, whereas FICO treats all late payments similarly.

• Collections: FICO ignores collection accounts with an original balance under $100, while VantageScore disregards collections that have been fully paid off.

• Credit Mix Influence: VantageScore places more emphasis on having a variety of credit types compared to FICO.

💼 Tip
If you’re shopping for a loan, be mindful of the rate shopping window to avoid unnecessary inquiries. And, if possible, clear any collections to help boost your VantageScore.

Why Your Scores Might Differ

“Don’t be surprised if your FICO and VantageScore aren’t identical.”

Since these models weigh factors differently, your scores may not match even though they’re based on the same credit report data. This difference isn’t necessarily a red flag; it simply reflects each model’s unique approach to assessing risk.

💼 Tip
Monitor both scores if you’re planning for a major financial move, like applying for a mortgage or auto loan. This can give you a more comprehensive view of your credit health.

Bottom Line

Both FICO and VantageScore are important tools for understanding your credit, and each provides lenders with valuable insights. Knowing how they work—and the differences between them—can empower you to make smarter financial decisions and better manage your credit profile.

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