Which Credit Score Is Most Important?

If you’re looking to improve your credit score, it’s important to know which one lenders will be looking at. Here’s a look at the most important credit scores.

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The Three Types of Credit Scores

There are three types of credit scores: FICO, VantageScore, and FAKO. FICO is the most important credit score, and it is used by 90% of lenders. VantageScore is a newer credit score, and it is used by some lenders. FAKO is a fake credit score, and it is not used by any lenders.

FICO Score

A FICO score is a type of credit score that makes up a significant portion of your credit report. A FICO score is a three-digit number that lenders use to help them decide whether to give you a loan and what interest rate they will offer you.

FICO scores are based on information in your credit report. They are not based on your income, how much money you have in the bank, or whether you pay your bills on time.

There are many different types of FICO scores, but the most common one is the FICO® 8 score. This score is used by 90% of top lenders.

The other two types of credit scores are VantageScore® 3.0 and 4.0. These scores are newer versions of the VantageScore® 2.0 and 3.0, which were developed by the three major credit bureaus (Equifax, Experian, and TransUnion).

VantageScore® 3.0 and 4.0 are used by some lenders, but not as often as FICO® scores.


Developed by the three major credit bureaus – Experian, TransUnion and Equifax – in 2006, the VantageScore is a scoring model that ranges from 501 to 990, with higher scores representing lower risk.

Credit scores are comprised of six components: payment history (accounts with delayed payments are penalized), credit utilization (using too much of your available credit can hurt your score), length of credit history (a longer history may help your score), new credit inquiries (too many recent inquiries can be a sign of risk), types of credit used (a mix of revolving debt – like credit cards – and installment debt – like auto loans – is better for your score) and the age of your oldest account.

According to VantageScore, approximately 30% of Americans have a “poor” or “fair” score, which can make it more difficult to get approved for loans or qualify for the best interest rates. Establishing a good credit history and maintaining a strong score is important to maintaining financial health.

Experian Score

Experian is one of the three major credit bureaus in the United States, along with Equifax and TransUnion. Experian generates a credit score for each person based on that person’s credit report.

There are several different types of Experian scores, but the most important one for most consumers is the FICO score. This is the score that is most often used by lenders to make decisions about whether to approve a loan and what interest rate to charge.

Experian also produces other types of scores, including the VantageScore, which is used by some lenders but not as widely as the FICO score.

The Importance of Each Score

Your credit score is important because it is a factor that lenders look at when they are considering loaning you money. There are three major credit bureaus in the United States- Experian, Equifax, and TransUnion. Each one of these bureaus uses a different scoring system, so it’s important to know what each one means.

FICO Score

FICO scores are the credit scores most lenders use to determine your credit risk. A FICO score is a three-digit number between 300 and 850. The higher your score, the better your credit.

There are three different types of FICO scores: base, industry-specific, and custom. Each creditor decides which scoring model to use when considering your application for credit.

A FICO score is calculated using five factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).

You can get a free copy of your base FICO score from Experian, TransUnion, and Equifax—the three nationwide consumer reporting agencies—once every 12 months at www.annualcreditreport.com or by calling 1-877-322-8228.


The VantageScore was created by the three major credit bureaus – Experian, TransUnion, and Equifax – to provide a more uniform scoring system. All three bureaus use the VantageScore model to generate credit scores for their customers.

The VantageScore is a risk-based model that ranges from 300 to 850, with scores below 600 considered subprime. The score is based on credit file data from all three bureaus, as well as public records and predictive analytics.

While the FICO score is still the most widely used credit score, the VantageScore is gaining popularity and is used by a growing number of lenders.

Experian Score

Experian is one of the three major credit bureaus in the U.S., and its score is sometimes called a FICO® Score☉, named after the Fair Isaac Corporation, which created the scoring system.

A FICO® Score of 670 or above is considered a good credit score, while a score of 800 or above is considered exceptional.

Experian scoring models range from 330 to 830, with scores below 580 considered poor, 580-669 considered fair, 670-739 considered good, 740-799 considered very good, and 800 and above considered excellent.

An Experian score below 660 is generally considered poor credit. A score of 660 to 719 is considered fair credit, while a score of 720 or above is considered good credit. An excellent Experian credit score is one that’s 850 or higher.

How to Improve Your Score

Your credit score is important because it is one of the key factors that lenders look at when considering a loan. A higher credit score means you’re a lower-risk borrower, which could lead to a lower interest rate on a loan. There are a few things you can do to improve your credit score, like paying your bills on time, maintaining a good credit history, and using a credit monitoring service.

FICO Score

FICO® Scores are the most widely used credit scores, and you may have heard that lenders use them to make lending decisions. You probably also know that you have more than one FICO® Score, because there are different scoring models for different types of consumer credit products. But what else do you need to know about FICO scores?

For starters, there are five major categories of information that go into a FICO® Score calculation:
-Payment history (about 35% of a FICO® Score)
-Credit utilization (about 30%)
-Length of credit history (about 15%)
-Credit mix (about 10%)
-New credit (about 10%)

Your payment history and credit utilization have the biggest impact on your score, so it’s important to focus on those two areas first. If you have a history of late payments or maxing out your credit cards, you can take steps to improve your payment history by paying all your bills on time going forward. You can also work on lowering your credit utilization by paying down your balances and using less of your available credit.

Length of credit history and credit mix are important factors in your score as well, but they’re harder to influence in the short term. The best way to build up a long credit history is simply to use credit responsibly over time. As for credit mix, try to diversify by having a mix of revolving lines of credit (like credit cards) and installment loans (like auto loans). This shows lenders that you can manage different types of debt responsibly.

Finally, new credit makes up a small portion of your score but it’s still important to be mindful of how often you apply for new accounts. Every time you apply for a new line of credit, an inquiry is made on your report which can temporarily lower your score. So if you’re planning on applying for a loan in the near future, be sure to space out your applications accordingly.


VantageScore is a credit scoring system developed jointly by the three major credit reporting bureaus – Experian, TransUnion and Equifax – in order to provide a more consistent and accurate measure of creditworthiness.

VantageScore was first introduced in 2006, with the most recent version (VantageScore 3.0) unveiled in 2013. This latest version is used by all three credit bureaus, and is the most widely-adopted scoring system currently in use.

There are a number of advantages that VantageScore has over other scoring systems, including:

– Greater consistency: VantageScore 3.0 uses the same scoring range (300-850), definition of a “good” score, and credit factors across all three credit bureaus. This makes it much easier for consumers to understand their score, and compare it against other scores.

– More predictive power: VantageScore 3.0 has been shown to be more predictive of future credit behavior than other scoring systems. This means that it can be a better predictor of whether or not a consumer will default on their debt repayments in the future.

– Better treatment of “thin file” consumers: VantageScore 3.0 uses alternative data sources to score consumers who don’t have enough traditional credit information to generate a FICO score. This includes things like utility payments, rent payments, and cell phone bills. This makes it possible for millions of “thin file” consumers to get a VantageScore, where they would otherwise be unscoreable.

Experian Score

Experian is one of the three major credit reporting agencies in the United States. They maintain a database of information on every individual with a credit file. This includes information on your credit history, current debts, and payment history. Experian uses this data to generate a credit score for you, which is then used by creditors to determine your creditworthiness.

There are many factors that influence your Experian score, but some of the most important ones include:

-Your payment history: This is the biggest factor in your Experian score, so it’s important to always make your payments on time.
-Your credit utilization: This is the amount of debt you have compared to your available credit. It’s best to keep your utilization below 30%, but the lower it is, the better it will be for your score.
-The length of your credit history: A longer history means a more accurate score, so it’s generally better to have older accounts rather than newer ones.
-Your mix of credit accounts: A mix of different types of accounts (revolving, installment, etc.) can be helpful for your score.
-YourHard inquiries: These are inquiries made by creditors when they pull your report when you apply for new credit. Too many hard inquiries can hurt your score, so it’s best to only apply for new credit when you really need it.

Taking these factors into account can help you improve your Experian score over time.

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