Which Credit Score Matters Most?

Find out which credit score matters most when you’re applying for a loan.

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The Three Types of Credit Scores

There are three types of credit scores, each with its own importance. The first is your FICO score , which is the most widely used credit score. This score ranges from 300 to 850, with a higher score indicating better credit. The second is your VantageScore, which is a newer score that ranges from 501 to 990. The final score is your Experian credit score, which also ranges from 300 to 850.

FICO Score

FICO® Scores are the credit scores most lenders use to decide whether to give you a loan and what interest rate to charge you. A FICO® Score is calculated from information in your credit report at the time it is requested.

Experian, one of the three major credit bureaus, creates and maintains the FICO® Score model used by lenders. You may have multiple FICO® Scores, one for each type of credit score company that uses the FICO Score model. But your main FICO Score will likely be similar even if the number is not exactly the same.

There are many different credit scoring models that can give a slightly different assessment of your credit risk. And lenders may use additional information — such as your income, job history or debts — along with your credit report and score when making lending decisions.

The three types of credit scores are:
-FICO Score: The best-known type of credit score, created by the Fair Isaac Corporation (FICO). Most lenders use FICO Scores when making their lending decisions.
-VantageScore: Also created by all three major credit bureaus, VantageScore is a newer type of score with some different scoring factors compared with a FICO® Score. Some lenders withhold certain types of loans if they don’t have access to a borrower’s VantageScore 3.0 or higher, although other factors are always considered as well. In general, having multiple types of credit scores can be helpful because it gives you a more complete picture of your financial history and potential risk as a borrower.
-PLUS Scores: These were created by Experian and range from 330 to 830 — similar to other scoring models on this scale. However, PLUS Scores aren’t used by lenders and aren’t as widely available to consumers compared with other types of scores.

VantageScore

VantageScore is a credit scoring system that was developed jointly by the three major credit bureaus – Experian, Equifax, and TransUnion. It’s now the most widely used credit scoring system in the US, and its use is growing rapidly around the world.

VantageScore was designed to provide a more accurate and consistent credit score than the traditional FICO score. The VantageScore algorithm is also much simpler than the FICO algorithm, making it easier to understand how your score is calculated.

There are three different versions of the VantageScore: 3.0, 4.0, and 5.0. The most recent version (VantageScore 5.0) was released in early 2017 and is the one most widely used by lenders today.

VantageScore is a great option if you’re looking for a free credit score or you want to check your score from all three major credit bureaus at once.

Experian Score

Most people are familiar with the credit score, but did you know that there are actually three different types of credit scores? The Experian credit score is one of the most important ones, and it’s the one that lenders will typically look at when they’re making a decision about whether or not to give you a loan.

So what is the Experian credit score? It’s a number between 300 and 850 that shows how likely you are to pay back a loan. The higher your score, the better. If you have a high Experian credit score, it means that you have a good history of making your payments on time and that you’re not using too much of your available credit.

One thing to keep in mind is that your Experian credit score is just one factor that lenders will consider when they’re making a decision about whether or not to give you a loan. They’ll also look at things like your income, your employment history, and your debt-to-income ratio. So even if you have a high Experian credit score, it doesn’t guarantee that you’ll be approved for a loan. But it does increase your chances.

The Difference Between the Scores

FICO Score

Your FICO® Score is the credit score most lenders use to determine your credit risk.

A FICO® Score of670 or above is considered a good credit score, while a score of 800 or above is considered exceptional.1 Approximately 56% of consumers had a FICO® Score between 670-739 in 2020.2

You have three FICO® Scores, one for each of the three credit bureaus – Experian, TransUnion and Equifax.

Your FICO® Score may be different from bureau to bureau because not all lenders report to all three bureaus and because each bureau may weight the information in your credit report differently.3,4 For example, one lender may report your balances to all three credit bureaus while another lender may only report to two. The same is true for other types of information reported on your credit report, like missed payments or amounts owed. Lenders typically look at your FICO® Score from the bureau where they pull your credit information when they make lending decisions.5

If you’re trying to improve your finances and raise your credit score, knowing which score matters most will help you focus your effort where it will have the greatest impact.

VantageScore

One of the main differences between the two is that FICO® Scores are used in 90% of lending decisions, while VantageScore is only used in about 10%. That’s because FICO® Scores have a long history dating back to the 1950s, while VantageScore was created in 2006 by the three major credit bureaus (Experian, Equifax and TransUnion).

Another difference is that each scoring model uses different information and weighs it differently to come up with your score. For example, FICO® scoring models focus heavily on your payment history, while VantageScore gives more weight to recent activity on your credit report.

However, both scoring models are designed to do the same thing: give lenders an idea of how likely you are to repay a loan. So even though there are some key differences, your FICO® Score and VantageScore can both give lenders a good idea of your creditworthiness.

Experian Score

Experian is one of the three major credit bureaus in the United States, and its credit score is used by many lenders to determine whether to approve a loan or extend credit. The Experian credit score range is 330-830, with a higher score indicating better credit.

There are a few things that can influence your Experian credit score, including:
-Your payment history
-The amount of debt you have
-The length of your credit history
-The types of credit you have
-Recent inquiries into your credit

Which Score Lenders Use

FICO Score

FICO® Scores are the credit scores most lenders use to determine your credit risk. You have three FICO® Scores, one for each of the three credit bureaus – Experian, TransUnion and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your FICO Score may change.

There are many different credit scores available to lenders, and each lender chooses which scores to use. FICO Scores are just one type of score that may be used to evaluate your creditworthiness. However, your FICO Scores are the most important scores lenders will consider when looking at your credit report because they provide the greatest level of detail about your borrowing history and current financial situation.

FICO Scores are used by many lenders, including all of the major credit card issuers and banks /*xyz*/

VantageScore

The VantageScore was created by the three major credit bureaus (Experian, Equifax, and TransUnion) and has become a popular score among lenders.

VantageScore is a scoring model that ranks individuals on a scale from 300 to 850, with 850 being the highest possible score. Scores above 700 are considered excellent, while scores below 600 are considered poor.

Unlike FICO scores, which vary depending on which credit bureau’s data is used, VantageScores are uniform across all three credit bureaus. This makes it easier for lenders to compare applicants’ creditworthiness.

In addition, VantageScores take into account more recent activity than FICO scores do, making them a more accurate reflection of an individual’s current financial situation.

For these reasons, VantageScore has become the scoring model of choice for many lenders.

Experian Score

Experian uses the FICO® Score 8, which is a scoring model created by the Fair Isaac Corporation. This scoring model is used by many lenders as well as other credit-granting institutions to help them make lending decisions. The FICO® Score 8 is designed to help lenders better predict how likely borrowers are to repay their debts on time.

The Experian score range is from 300 to 850, with a higher score indicating less risk to lenders. The Experian score range is broken down into five categories: very poor, poor, fair, good and excellent. You can see where you stand by checking your free credit report summary, updated weekly, on Credit.com.

How to Improve Your Score

Your payment history comprises 35% of your credit score, making it the most important factor in determining your score. A single late payment can drop your score significantly. To make sure your payment history is strong, always pay your bills on time, and consider signing up for automatic payments. You can also keep an eye on your credit utilization, which is the second most important factor in your credit score.

FICO Score

FICO scores are the credit scores most lenders use to determine your credit risk and the interest rate you will pay on a loan. You have three FICO scores, one for each of the three credit bureaus – Experian, TransUnion and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your FICO score can change too.

There are many different credit scoring models that financial institutions use to measure your creditworthiness, but the FICO Score is by far the most common. In fact, more than 90% of top lenders use FICO Scores to help them make lending decisions. That’s why it’s important to understand how your FICO Scores are calculated and what factors influence them.

Your payment history is the most important factor in your FICO® Scores—it accounts for 35% of each Score. That’s why you should always pay all your bills on time, including your mortgage, car loan, student loans and credit card bills. Payment history also includes public records such as bankruptcies, foreclosures and suits or judgments filed against you.

VantageScore

The VantageScore is a credit score developed by the three major credit reporting bureaus: Equifax, Experian and TransUnion. It was introduced in 2006 as an alternative to the FICO score, which had been the standard credit score for more than two decades.

There are a few key differences between the VantageScore and the FICO score. For one, the VantageScore uses a scale of 300 to 850, while the FICO score uses a scale of 350 to 800. Additionally, the VantageScore considers both positive and negative information when calculating a score, while the FICO score only considers negative information.

Finally, the VantageScore takes into account more recent credit activity than the FICO score. This is because the VantageScore model is updated on a quarterly basis, while the FICO model is updated every six months.

So, which credit score matters more? It depends on who you ask. Some lenders still prefer to use the FICO score, while others are more open to using the VantageScore. Ultimately, it’s up to each individual lender to decide which score they want to use.

Experian Score

Experian is one of the three major credit bureaus in the United States, along with TransUnion and Equifax. Your Experian credit score is a number between 300 and 850 that represents your creditworthiness. The higher your score, the more likely you are to be approved for loans and credit cards. A good Experian credit score is 750 or higher.