There are a lot of different credit scores out there, so which one is the most accurate? We did some research to find out.
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The Three Types of Credit Scores
There are three main types of credit scores: FICO, VantageScore, and Experian. FICO is the most common type of credit score, and it’s what most lenders use when they’re making decisions about loan approvals. VantageScore is a newer type of credit score, and it’s becoming more popular with lenders. Experian is the credit score that’s used most often by landlords and employers.
FICO (Fair Isaac Corporation) is the most common type of credit score. Used by more than 90% of lenders, your FICO score ranges from 300 to 850 and is based on your credit history, including payment history, outstanding debt, and length of credit history. A high FICO score indicates you’re a low-risk borrower, which could lead to a lower interest rate on a loan.
In 2006, the three national credit reporting companies—Equifax, Experian, and TransUnion—joined forces to create VantageScore. The goal was to develop a more consistent and transparent scoring system that would be easier for consumers to understand and give them a better idea of their creditworthiness.
VantageScore is now the most widely used credit score model, with over 2.5 billion scores sold to lenders in 2017 alone. It’s also the scoring model used by Credit Karma and other popular free online credit monitoring services.
There are three major versions of VantageScore: 1.0, 2.0, and 3.0. Here’s a look at how they differ:
VantageScore 1.0: This was the first version of the score, introduced in 2006. It was based on a scale of 501-990 and used data from all three national credit reporting companies.
VantageScore 2.0: Introduced in 2010, this version of the score is based on a scale of 300-850 (the same as FICO) and uses data from all three national credit reporting companies.
VantageScore 3.0: The latest version of the score, introduced in 2013, is also based on a scale of 300-850 and uses data from all three national credit reporting companies. In addition, it includes more recent information than previous versions (up to 24 months instead of six) and differentiates between types of debt (revolving vs installment).
Experian is a credit reporting agency that uses the FICO Score 8, the most widely used credit score model in the United States. The Experian credit score range is 300-850, and a good Experian credit score is 740 or higher.
The Differences Between the Scores
There are a lot of things that go into your credit score. But what lenders are really looking at is your credit utilization, which is your total balances divided by your total credit limits. This number is important because it shows how much of your available credit you’re using.
FICO vs. VantageScore
FICO and VantageScore are the two most common credit scoring models in use today. Here’s a look at how they differ and which one you should focus on.
FICO scores are the most commonly used credit scores, and they’re produced by the Fair Isaac Corporation. VantageScore is a newer scoring model that was developed jointly by the three major credit bureaus – Equifax, Experian and TransUnion.
One of the key differences between the two scoring models is that FICO scores only consider information that is found in your credit reports. VantageScore, on the other hand, also looks at “non-traditional” data sources such as utility payments and public records.
Another difference is that FICO scores are usually either quoted as a range (for example, 750-850) or as a single number (800, for example). VantageScore, on the other hand, is always reported as a range ( 701-900, for example).
One thing to keep in mind is that lenders are not required to use either scoring model – they can choose whichever one they want. That being said, FICO scores are still used by the vast majority of lenders.
So which one should you focus on? The short answer is both. Check your FICO score before applying for any type of loan or line of credit, since that’s what most lenders will focus on. But it’s also a good idea to keep an eye on your VantageScore, especially if you plan on applying for a mortgage or another type of loan in the near future.
VantageScore vs. Experian Score
There are a few different types of credit scores out there, but the two most common are the VantageScore and the Experian Score. Both are used by lenders to make decisions about whether or not to approve a loan, but there are some key differences between the two.
The VantageScore is a newer score, first introduced in 2006. It’s a joint venture between the three major credit bureaus (Experian, Equifax, and TransUnion) and is used by many lenders. One advantage of the VantageScore is that it’s updated more frequently than the Experian Score, so it can be more accurate in predicting risk. However, because it’s newer, not all lenders use it yet.
The Experian Score is an older score that’s been around since the early 1990s. It’s based on data from just one credit bureau (Experian), so it doesn’t take into account information from Equifax and TransUnion. Nevertheless, it’s still used by many lenders because it’s a well-established score with a long track record.
Experian Score vs. FICO Score
There are many different types of credit scores out there, but the two most commonly used are the Experian score and the FICO score. So, what’s the difference between the two?
Experian is a credit reporting agency, and their score is based on the information in your Experian credit report. FICO, on the other hand, is a data analytics company that creates predictive models, and their score is based on information from all three of your major credit reports (Experian, Equifax, and TransUnion).
Interestingly, while Experian and FICO use different methods to calculate your score, they often end up with very similar numbers. In fact, according to Fair Isaac Corporation (the company behind FICO), 87% of lenders use FICO scores when making lending decisions.
So, while there are some subtle differences between Experian scores and FICO scores, they’re both important measures of your creditworthiness. And if you’re looking to improve your credit score, you’ll need to focus on factors like paying your bills on time, keeping your balances low, and maintaining a good mix of different types of credit accounts.
The Most Accurate Score
There are many credit scores available to consumers, but which one is the most accurate? This is a question that many people ask when they are looking to improve their credit score. The answer may surprise you.
FICO scores are the most accurate credit scores and are used by 90% of lenders. Your FICO score is calculated using information from your credit report, and it ranges from 300 to 850. A high FICO score indicates that you’re a low-risk borrower, which means you’re more likely to get approved for a loan with a lower interest rate.
VantageScore is a credit scoring model developed jointly by the three major U.S. credit bureaus – Experian, Equifax, and TransUnion. VantageScore is designed to provide a more consistent and predictive credit score than traditional scoring models, such as the FICO score.
VantageScore uses a similar credit scoring range to the FICO score, from 300 to 850. However, the two scoring models use different methods to calculate a borrower’s creditworthiness.
One of the key differences between the VantageScore and FICO models is that VantageScore gives equal weight to all types of information on a borrower’s credit report. In contrast, the FICO model assigns different levels of importance to different types of information, such as missed payments or maxed-out credit cards.
The VantageScore model also takes into account the “revolving utilization ratio” – the amount of available credit that a borrower is using at any given time. This factor is not considered in the FICO model.
Overall, the VantageScore model is designed to provide lenders with a more holistic view of a borrower’s creditworthiness than the traditional FICO model.
Experian is one of the three major credit reporting bureaus in the United States, and their score is sometimes called the Experian FICO score. The Experian credit score scale ranges from 330 to 830, with a higher score indicating a lower risk of default.
Experian uses a different scoring model than the other two major bureaus, so it’s possible that your Experian score will be different from your TransUnion or Equifax score. If you’re trying to improve your credit score, it’s important to check all three of your scores regularly and work on reducing risk factors on all three bureau report.