VantageScore

VantageScore summary:

VantageScore^® is a credit score model that was created through a joint effort of the three major credit reporting bureaus in the U.S.
The VantageScore model is different from the FICO scoring model, which was developed by the Fair Isaac Corporation.
VantageScores rely on several factors to create a snapshot of your credit health.

VantageScore definition and meaning

VantageScore is a credit scoring model that was developed by the three major credit bureaus: Equifax, Experian, and TransUnion. It's an alternative to the FICO credit score model, which has long been the industry standard for credit scoring.

VantageScores range from 300 to 850, and they're calculated using information on your credit reports. A higher VantageScore means lower risk for lenders, which could make it easier for you to get approved for loans.

Key concept: VantageScore is a credit score model developed by the credit bureaus.

More on VantageScore

You're all about staying on top of your finances, which means you probably know your credit score. That's a good thing if you plan to borrow or just want to improve your financial health. It's also helpful to know which scores you're checking.

VantageScore is a type of credit score that was developed by Equifax, Experian, and TransUnion. Those are the big three credit reporting bureaus in the U.S.

Your VantageScore measures your risk, and checking yours can clue you in on ways you might be able to improve your credit.

VantageScore: a comprehensive breakdown

VantageScores measure creditworthiness, which is how lenders see you as a borrower. To be creditworthy means lenders are confident that you'll pay back what you borrow and do so on time.

So who uses VantageScore to check credit? Over 3,400 banks, fintech companies, and other businesses use VantageScores to assess creditworthiness. Most of the largest banks in the U.S. rely on VantageScores to approve borrowers for loans and lines of credit.

How VantageScores are calculated

The VantageScore formula factors in details about your credit use, pulled from your credit reports. Here's how it adds up:

Payment history: 40%
Depth of credit: 21%
Credit utilization: 20%
Balances: 11%
Recent credit: 5%
Available credit: 3%

What does that all mean?

Payment history is pretty obvious—it's how often you pay bills on time or late.

Depth of credit means the types of credit accounts you have.

Credit utilization is how much you owe on your credit cards, relative to your credit limits.

Balances mean your total amount of debt.

Recent credit is any new accounts you've opened and how often you apply for credit.

Available credit is how much credit you have available.

What is a good VantageScore?

Every lender decides what credit score they consider excellent, poor, or anything in between. Generally speaking, a VantageScore of 661 to 715 is good. Scores in the 716 to 747 range are very good, while excellent credit is 748 or higher.

VantageScore vs. FICO® Score

VantageScores and FICO® Scores both measure your credit health, but in different ways. Here are some of the key ways they compare.

Each type of credit score uses a different mix of factors and assigns them different weights.
FICO® Scores were established first and are the most widely used among lenders.
VantageScore and FICO treat paid and unpaid collection accounts differently when calculating your score.
The minimum credit history requirements to have a VantageScore are lower compared to what FICO expects.
Both credit score models allow rate shopping without excessive harm to your score. Both treat rate shopping differently for scoring purposes.

So, which credit score should you check? Both, if you're able to since each one may offer a different view of your credit. If you plan to apply for a loan, it makes sense to check whichever score model the lender will use to make a decision. That can give you the most accurate idea of what the lender will see when you apply.

Learn how to check your credit score for free, then get tips for how to fix your credit if your score isn't yet where you'd like it to be.

VantageScore FAQs

Should I look at my credit report?

It is a good idea to look at your credit reports periodically. They’ll show you your payment history and how much you owe.

The most important part of your credit score is making your payments on time. Your credit reports can help you understand whether and how much your late payments are hurting you.

Your credit report should show all of your open credit balances, including credit cards, loans, mortgages, etc. This big picture view can help you evaluate whether or not you can manage your debt or may need a debt forgiveness or debt resolution solution.

Sometimes, credit scores are hurt by credit reporting errors. When you review your credit reports, check for mistakes. You might see a closed account reported as open, or a balance that you know you paid off. You might even find someone else’s accounts on your credit report (especially if you have a common name). If you see any mistakes, follow the credit reporting agency’s process for getting them corrected. You can usually submit a correction request while you’re viewing your credit report online.

How often should I check my credit report for mistakes?

It's a good idea to check your credit report for mistakes at least once a year. If you want more frequent updates on changes to your reports, you may want to sign up for a free credit monitoring service.