FICO vs. VantageScore: What’s the Difference?

When it comes to borrowing money — whether you're financing a car, applying for a mortgage, or opening a new credit card — your credit score plays a starring role. But did you know you might have more than one score?

Two major scoring models dominate the credit landscape: FICO and VantageScore. While both aim to measure your creditworthiness, they do so in slightly different ways. Understanding how each score is calculated can help you better prepare for your next financial move.

FICO vs. VantageScore: A Quick Overview

FICO Score was developed in 1989 by the Fair Isaac Corporation. It uses information received from the three major credit bureaus, Experian, TransUnion, and Equifax, to calculate your score.

VantageScore, meanwhile, was introduced in 2006 by the three major credit bureaus to compete with FICO. It also uses data from Experian, TransUnion, and Equifax, but different factors impact how the scores are calculated.

How Credit Score Are Calculated (and Why It Can Vary)

Both scoring models use a range of 300-850, with higher scores indicating lower lending risk. However, each model weighs credit factors differently, which can lead to variations in your score depending on which one is used.

FICO Score Credit Factors	Weight
Payment history Whether you pay your bills on time	41%
Amounts owed Total debt owed across accounts and how much available credit you're currently using	30%
Length of credit history The age of credit accounts	15%
Credit mix The variety of credit types you use (installment vs. revolving)	10%
New credit The number of recent credit checks and newly opened credit accounts	10%

VantageScore Credit Factors*	Weight
Payment history Whether you pay your bills on time	41%
Depth of credit The age and type of credit accounts you use	20%
Credit Utilization How much available credit you're currently using	20%
Recent credit The number of recent credit checks and newly opened credit accounts	11%
Balances The total debt you owe overall	6%
Available credit The amount of credit you have not used on revolving accounts, like credit cards.	2%

*Based on the new VantageScore 4.0 model, which weighs factors in a slightly different way than the traditional 3.0 model.

Credit Score Ranges

Why Does My Credit Score Look Different Across Apps and Lenders?

If you use personal finance tools to monitor your credit score, you might notice that the number can vary, even when it's based on the same scoring model. For example, a personal finance app might show a FICO score of 712, while a lender sees 718. Different lenders may also report different scores.

This happens because there are multiple versions of credit scoring models, each tailored for specific types of lending — like auto loans, credit cards, or mortgages. For instance, in addition to the most widely used FICO Score 8, you may come across other versions such as FICO Score 9 or 10. VantageScore also comes in different versions, such as 3.0 and 4.0.

On top of that, lenders may pull your credit report from different bureaus: Experian, TransUnion, or Equifax. Since each bureau may have slightly different information, your score can vary depending on which one is used.

In short, variations in your credit score are normal. Regardless of the score version, maintaining good credit habits, like paying bills on time and keeping balances low, is what matters most.

Which Credit Scoring Model Do Mortgage Lenders Use?

While FICO is currently used by 90% of lenders (according to FICO), VantageScore is extending its influence throughout the lending industry.

Recently, the Federal Housing Finance Agency (FHFA) announced that lenders who sell loans to Fannie Mae and Freddie Mac (the government-sponsored enterprises that guarantee most home loans) can now choose to use either classic FICO or VantageScore 4.0 when evaluating borrowers for a mortgage.

As adoption grows, VantageScore may play a larger role in mortgage decisions in the future. For now, your best bet is to ask your lender which score they use so you can be prepared and confident when applying.