The Two Major Scoring Models
FICO (Fair Isaac Corporation) and VantageScore are the two dominant credit scoring models. Both produce scores from 300–850, but they weight factors differently and are used in different contexts.
FICO Score: The Lender Standard
FICO is used in approximately 90% of lending decisions by major banks and financial institutions. There are multiple FICO versions:
- FICO 8: The most widely used. What most lenders pull when you apply for a credit card.
- FICO 9: Newer version. Ignores paid collections (better for consumers).
- FICO Auto Score: Weighted more toward auto payment history.
- FICO Mortgage Score (2, 4, 5): Used for home loans — often a median of all three bureau scores.
VantageScore: The Free Score Model
VantageScore was created jointly by the three credit bureaus. It's used by many free credit monitoring services (Credit Karma, Credit Sesame, Experian CreditWorks). While a useful indicator of credit health, it's not what most lenders pull.
Key Differences
- VantageScore can score people with only 1 month of credit history; FICO requires 6 months
- VantageScore 4.0 ignores medical collections under $500
- FICO 9 ignores all paid collections; FICO 8 still counts them
- Both use 300–850 scale but calculate scores slightly differently
Which Should You Focus On?
Monitor VantageScore for trends (it's free and updated frequently), but focus on FICO for loan applications. The habits that improve one score — paying on time, keeping utilization low — improve both. See the 5 score factors.