Posted by: John S Kiernan

FICO and VantageScore are the two top dogs of the credit-scoring market. So for your wallet’s sake, it’s important to understand what distinguishes them.

Here’s what you need to know:

VantageScore vs. FICO Score – Key Differences

	VantageScore	FICO
Most Popular Model	VantageScore 3.0	FICO Score 8
Score Range	300 to 850	300 to 850
Scoreable Population	225 million	190 million
Free Providers	• WalletHub • Bankrate • Capital One • Credit Karma • Mint • See More	• American Express • Bank of America • Barclays • Chase • Citi • Discover • See More
Share of Lenders Using Score	80% of the 25 largest lenders	90% of the 100 largest lenders
Scores Issued per Year	8 billion	10 billion
Recent Credit Experience Needed for Score	3-6 months	1 month
Inquiry Grouping Period*	14 days	30-45 days
Late-Payment Damage	Missed mortgage payments are more damaging than other types	Late payments are treated equally, regardless of account type
Treatment of Collection Accounts	Once paid, collection accounts stop being considered	Collection accounts with original balances under $100 aren’t considered
Authorized Users	Moderate credit-building capacity	Limited credit-building capacity

You can see where your credit stands according to the VantageScore 3.0 model by signing up for a free WalletHub account. WalletHub is the only source of free credit scores – of any type – that are updated on a daily basis. You can also get free FICO scores from a few select providers, including Discover.

Crowded Credit-Score Market

FICO is an easy-to-remember acronym, but it really doesn’t tell you much as far as credit scores are concerned. Each of us has as many as 49 different scores issued by the Fair Isaac Corporation, or FICO, among more than 1,000 scores overall. And guess what? In many cases, none of them will exactly match what any lender uses to evaluate our trustworthiness as borrowers – or what some might call our “real” credit score.

That’s right. All major lenders use proprietary in-house credit scores, which might be based on over-the-counter scoring models but are modified in such a way as to provide drastically different results than anything we can get our hands on.

That, in turn, makes the brand and model of the credit score that you reference almost immaterial. It doesn’t matter whether it’s a FICO or VantageScore credit score or whether it’s based on your TransUnion, Equifax or Experian credit report. What matters is that you actually check your score. You should also get it for free from a reputable source and reference the same type of score over time for the sake of accurate comparison.

Get Your Latest Credit Score – 100% Free

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via Finance Xpress