Classic FICO Vs. Vantage Score

A consumer's credit report and credit score play a major role in his financial future. The three credit bureaus -- Equifax, TransUnion and Experian -- maintain credit reports for consumers in the United States. Previously, the Fair Isaac Corporation maintained the only credit scoring model based on these reports. However, in 2006, the credit bureaus developed their own credit scoring method, known as the VantageScore, which differs from the original model known as the FICO credit score.

Credit Score Uses

Creditors review a consumer's credit score when deciding whether to give the consumer a new credit card, loan, mortgage or line of credit. Although the credit score is not the only factor considered, consumers with higher credit scores typically receive more approvals and better interest rates. Creditors also periodically review their customer's credit scores when deciding whether to increase the customer's available credit line or to lower an interest rate. Landlords may check a tenant's credit score before signing a lease, and many employers check credit scores as well. Some creditors use the FICO score when assessing a credit application, and others use the VantageScore.

FICO Credit Scores

Fair Isaac developed a method of grading a consumer's credit report known as the FICO credit score. According to the MyFico website, the FICO score divides a consumer's credit report into five categories to calculate a three-digit rating ranging from 300 to 850: A consumer's credit history accounts for 35 percent of the score. The amount of debt the consumer accumulated accounts for 30 percent. The length of the consumer's credit history accounts for 15 percent. The number of credit inquiries a consumer made accounts for 10 percent. The different types of credit a consumer has in his credit profile accounts for 10 percent.

The VantageScore

The credit reporting bureaus -- Equifax, TransUnion and Experian -- developed the VantageScore. The VantageScore uses a slightly different scoring method than the FICO credit score and has both a numerical range and a letter grade. Under this scoring model, a consumer's rating ranges from 501 to 900 and has a letter grade of A through F, according to Bankrate. The VantageScore is calculated based on six factors, according to Bankrate: 32 percent comes from the consumer's credit history, 23 percent from the percentage of available credit being utilized, 15 percent from the amount of debt owed, 13 percent from the length of credit history, 10 percent from the number of recently opened accounts and 7 percent from the amount of available credit.

Tips

Consumers can order a copy of their FICO credit score and their VantageScore as well as their credit report. Consumers can order a copy of their FICO credit score through the MyFICO website. Consumers can order a copy of their VantageScore from Experian. Obtaining either score requires a small fee.