Is a Vantage Score a FICO Score?

Consumers have a new credit score to deal with that could be more consistent and accurate than the FICO model most people know: the VantageScore. As of 2011, the VantageScore is but a blip on the radar of most lenders and consumers, but could become as important as the FICO model. What might be confusing is that FICO and VantageScore use very similar algorithms and rating scales.

Identification

The VantageScore is not a FICO score, but it acts and looks similar to one with slight differences. The FICO model uses five main factors, while the VantageScore employs six. Some of the most important factors are the same in both models, such as payment history and amount of debt owed. The VantageScore ranges from 500 to 990, whereas the FICO model ranges from 300 to 850.

Importance

Despite giving comparable results, the VantageScore lags far behind the FICO model as far as usage. As of 2010, only about 6 percent of lenders used the VantageScore model, according to The Money Coach. The potential benefits of the VantageScore could lead to wider adoption in the future. FICO scores tend to vary by several dozen points between the bureaus because they each use a slightly different version of the FICO score---only the Fair Isaac Corporation sells true FICO scores. Since the three major reporting bureaus would use the same score, the VantageScore theoretically should reduce score variance.

Possible Confusion

The FICO model is so pervasive in the consumer credit industry that the terms "FICO score" and "credit score" are often used interchangeably. The new scoring range could make consumers believe they have worse credit than they really do. A 720, for instance, is an excellent score in the FICO model, but below average in the VantageScore system. Also, borrowers might not know which system a lender uses, leaving them unsure which score to buy if they want to check their credit.

Tip

While the VantageScore is rarely used, some of the biggest credit card issuers use it, so it might be worth it to pay attention to this model. In the VantageScore model, your credit used to credit available counts for 23 percent of your score---more than in the FICO system---so try to eliminate credit card debt or get your lender to raise your limit. In the FICO model, the amount of credit available does not matter, but it counts for 7 percent in the VantageScore system.