VantageScore

VantageScore summary: 

• VantageScore is a competitor to the popular FICO Score.

• A Prime or good VantageScore is 661 to 780.

• The latest version of VantageScore considers trends in your credit history, plus banking or credit card information.

VantageScore Definition and Meaning

VantageScore is a type of credit score developed by the three major credit bureaus. Like other credit scores, it suggests how likely you are to repay your debts. Credit card companies and other lenders check your credit scores to decide whether to give you credit, and if so, how much.  

VantageScore is a major competitor to the FICO® Score. They are both perfectly valid credit scores. Lenders could check either type of score when you apply for credit.  

Key Aspects of VantageScore

Payment history, credit usage, length of credit history, account types, and recent inquiries are key aspects to understanding your VantageScore. (These are identical to key aspects of a FICO® Score, though VantageScore and FICO models score aspects differently).

• Payment history: Timely payments boost your score.

• Credit usage: Low credit usage boosts your score.

• Length of credit history: Using credit for a long time boosts your score.

• Account types: Using a diverse mixture of account types boosts your score.

• Recent inquiries: Keeping credit checks reasonable boosts your score.

VantageScore version 4.0, used by some lenders, also weighs trends in your credit score. This is a more recent addition to credit score calculations. In the past, credit scores only considered a snapshot of your data. VantageScore looks at things like whether your total debt is trending up or down over time. 

Your VantageScore is probably slightly different from your FICO® Score. That’s normal. VantageScore and FICO score the same factors slightly differently, which could lead to different results. 

VantageScore: a Comprehensive Breakdown

VantageScore was created in 2006 by VantageScore Solutions, LLC, a company formed by the three major U.S. credit bureaus: Equifax, Experian, and TransUnion. It’s a major competitor to the FICO® Score, a dominant credit scoring model used by banks and lenders.

The credit bureaus created the VantageScore to compete with FICO for a slice of the profitable credit score market. The credit bureaus say the latest VantageScore model more accurately scores people.

Credit score table

Prime borrowers are considered low risk, typically with good credit scores. The following credit score table shows how scores are distributed.