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VantageScore vs FICO Score [Which Is More Important?] - YouTube
Channel: Mind Over Finance
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what's the difference between a
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VantageScore in a FICO score today let's
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take a look at two very popular types of
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credit scores and by the end of today's
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video you'll know exactly why they're
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different please take a quick moment to
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smash that like button because it really
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does help out the channel Thanks as far
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as I know the Vantage score is a credit
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scoring model used by the three credit
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bureaus
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but let's not leave it to chance here's
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a formal definition vantage score is a
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consumer credit scoring model created
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through a joint venture of the three
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major credit bureaus Equifax Experian
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and TransUnion the model is managed and
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maintained by an independent company
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VantageScore solutions LLC that was
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formed in 2006 and is jointly owned by
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the three bureaus vantage score models
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compete with the credit scoring models
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produced by Fair Isaac corporation FICO
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and although this number has changed the
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vantage score is a number from 300 to
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850 with 300 being very poor credit and
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850 being excellent credit what factors
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affect your vantage score this comes
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from the vantage score comm website the
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biggest thing affecting your vantage
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score is total credit usage balance and
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available credit followed by credit mix
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and experienced payment history age of
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credit history and new accounts
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let's look at Wikipedia's definition of
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a FICO score the FICO score was first
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introduced in 1989 by FICO then called
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Fair Isaac and company the FICO model is
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used by the vast majority of banks and
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credit grantors and is based on consumer
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credit files of the three national
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credit bureaus Experian Equifax and
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TransUnion because a consumers credit
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file may contain different information
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at each of the bureau's FICO scores can
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vary depending on which bureau provides
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the information to FICO to generate the
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score FICO scores also range from 300 to
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850 with 300 being very poor credit and
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850 being excellent credit what factors
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affect your FICO score this chart comes
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directly from the myfico.com website so
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check it out when you have a chance but
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it's really nice to see these
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percentages because if you know what
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factor is going to making up your score
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it's really easy to know what you have
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to do in order to change your credit
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score so here's the breakdown 35 percent
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of your score comes from your payment
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history 30 percent amounts owed 15
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percent comes from length of your credit
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history 10 percent from new credit and
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10 percent from your credit mix
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so what's the difference between a
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VantageScore in a FICO score well
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they're kind of like two sides of the
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same coin
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the Vantage score is the mathematical
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scoring model created and jointly used
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by the three credit bureaus to show your
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credit worthiness while the FICO score
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is the credit scoring model created by
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the Fair Isaac corporation to show how
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credit worthy you are both scores are
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types of credit scores but right now it
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feels like the FICO score reign supreme
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I think that's the one that most lenders
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are going to use and it might not always
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be the case but from what I've seen what
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I've experienced it feels like the FICO
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score is more widely used
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a few quick things about Vantage scores
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and FICO scores it looks like both
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companies have similar factors that
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affect your credit scores but they
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probably weigh them differently
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and that's why your vantage score is
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going to be a little different from your
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FICO score and I'm not fully clear on
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this so if you know you can let me know
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in the comment section but I think you
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have a vantage score for Experian a
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vantage score for Equifax and a vantage
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score for TransUnion and the only reason
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I say I don't know is because I haven't
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tried to pull a vantage score from
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Equifax or experience and my TransUnion
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vantage score is provided to me for free
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by my bank and speaking of that looking
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at my own TransUnion scores from both
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companies when my vantage score was a
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768 my TransUnion score was a 772 from
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FICO so yeah they're different but
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they're in the same ballpark
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Vantage scores and FICO scores are two
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different mathematical credit scoring
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models but keep in mind that they're
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sourced from the same information your
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credit history from the three credit
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bureaus so whether you get a vantage
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score or whether you get a FICO score
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just know what yours is I appreciate you
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watching today and I hope you enjoyed it
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and if you did enjoy please don't forget
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to headbutt that like button share
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comment and subscribe and join me on
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this journey to grow mind over finance
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to one thousand of scribe or straw bro
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thanks guys
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see you next time
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