Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
VantageScore vs. FICO: What's the Difference in 2024?
Understanding the difference between VantageScore and FICO scores is crucial for your financial well-being. These credit-scoring models, used by major consumer reporting agencies and financial institutions, help determine your creditworthiness for loans, credit cards, and other financial products. Let's dive deep into how these scoring models work and what makes them unique.
Understanding Credit Scoring Models: VantageScore and FICO Criteria
Both VantageScore and FICO credit-scoring models analyze data from your credit reports to generate consumer risk scores. However, they weigh various factors differently, which can result in distinct credit score ranges.
VantageScore Scoring Criteria
VantageScore 4.0, the latest version, groups credit information into six categories with varying levels of influence:
- Payment History (Extremely Influential): Your track record of paying bills on time
- Age and Type of Credit (Highly Influential): The length of your credit history and mix of credit accounts
- Credit Utilization (Highly Influential): The percentage of available credit you're using
- Total Balances and Debt (Moderately Influential): Your overall debt burden
- Recent Credit Behavior and Inquiries (Less Influential): New credit applications and account openings
- Available Credit (Less Influential): Total credit limits across all accounts
FICO Score Categories
FICO Score 9 and FICO 10T use a percentage-based weighting system:
- Payment History: 35%
- Amounts Owed: 30%
- Length of Credit History: 15%
- Credit Mix: 10%
- New Credit: 10%
Key Differences Between VantageScore and FICO
Minimum Credit History Requirements
One significant difference lies in the minimum scoring requirements. FICO requires at least six months of credit history and one reported account within the past six months. In contrast, VantageScore can generate scores with just one month's history and one account reported within 24 months, making it more accessible for consumers new to credit.
Treatment of Credit Inquiries
Both models handle hard inquiries differently:
- FICO: Counts multiple inquiries of the same type within 45 days as one inquiry (14 days for older versions)
- VantageScore: Groups all inquiry types within 14 days as one inquiry
- Mortgage inquiries: Both models use a 45-day dedupe window, as per CFPB guidelines
Trended Data Analysis
VantageScore 4.0 incorporates trended data, analyzing up to 24 months of credit utilization patterns. FICO traditionally uses point-in-time data, though FICO 10T has begun incorporating trended data as well.
Credit Score Ranges and Industry-Specific Models
Both scoring models have evolved over time:
FICO Scores:
- Base scores: 300-850
- Industry-specific scores (auto loan, bankcard): 250-900
VantageScore:
- VantageScore 3.0 and 4.0: 300-850
- Earlier versions: 501-990
Accessing Your Credit Scores
You can obtain your credit scores through various channels:
- AnnualCreditReport.com: Free credit reports from all three credit bureaus
- Credit monitoring services: Services like CreditWise
- Credit card issuers: Many participate in the FICO Score Open Access Program
- Major credit bureaus: Equifax, Experian (including Experian Boost), and TransUnion
Maximize Your Credit Card Rewards While Building Credit
While monitoring your credit scores is important, you can also maximize your credit card rewards during your credit-building journey. Kudos, a free AI-powered browser extension, helps you get the most value from your credit cards when shopping online. It automatically recommends the best card to use for each purchase, ensuring you earn optimal rewards while maintaining healthy credit utilization.
If you're looking to get more out of your credit cards, Kudos is the best free shopping app to use when you shop online. They're currently offering $20 back after your first eligible purchase — just sign-up for free with code "GET20" and make a purchase at a Boost merchant.
Expert Takeaway
While VantageScore and FICO scores may differ in their specific methodologies, they both evaluate similar aspects of your credit behavior. Focus on maintaining good credit habits:
- Pay bills on time
- Keep credit utilization low
- Apply for new credit sparingly
- Maintain a diverse credit mix
- Monitor your credit reports regularly
Frequently Asked Questions
What are the main differences between VantageScore and FICO?
The main differences include minimum credit history requirements, treatment of credit inquiries, and the use of trended data. VantageScore typically requires less credit history and uses more recent consumer behavior patterns.
Which score do most lenders use?
FICO scores are still the most widely used by lenders, but VantageScore's popularity has grown significantly, especially among credit card issuers and financial institutions.
Why are my VantageScore and FICO scores different?
Different scoring models weigh credit factors differently and may use varying data points from your credit reports, resulting in score variations.
How can I improve both my VantageScore and FICO scores?
Focus on universal positive credit behaviors: make timely payments, keep credit utilization low, maintain older accounts, and limit new credit applications.
How often do credit scores update?
Credit scores typically update when new information is reported to the credit bureaus, which usually occurs monthly as lenders report account activity.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
