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What is the VantageScore?

August 10, 2010

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In the 1970s, the Fair Isaacs Company created the first credit scoring system, dubbed the FICO score, which has since been standardized as the industry’s leading credit score model to assess potential borrowers. More recently, the VantageScore was created in collaboration with the three big credit bureaus - TransUnion, Equifax, and Experian - as a new generic proprietary credit score model marketed as a more “consistent interpretation” and “accurate score” than FICO. What exactly can you expect from the VantageScore that differs from the classic FICO, and what does it mean for your credit score?

The Basics

From Credit Karma’s consumer-friendly, free TransRisk score, the lender standard FICO, to the new-kid-on-the-block VantageScore, the plethora of credit score models can be mind-boggling. Every model uses a different algorithm that weighs each part of your credit report differently, which explains why you may have a 750 from Credit Karma and a 762 from FICO. We’ve previously addressed how to understand the credit score differences; there are indeed many different credit score models, but they are all highly correlated. They use different ranges, different formulas, and the information found on your credit report can differ from bureau to bureau, but all the models aim to assess your credit history and translate it into your 3-digit credit score number.

The VantageScore

The big three credit bureaus, TransUnion, Equifax, and Experian, offer their own proprietary models but usually provide the FICO score to lenders. So they created the VantageScore model to create a consistent credit score model across the three bureaus to compete with the FICO score. Thus, they can offer lenders a more “standardized” score from the bureaus and cut out the Fair Isaacs Company.

VantageScore is being touted as “The New Standard in Credit Scoring”, and it can potentially be big business if the bureaus can compete successfully with the stranglehold FICO has on lenders. It just depends on whether lenders will be willing to change to a different model.

The VantageScore offers additional features, such as predictive scoring and a 24-month review of credit history, that the classic FICO model doesn’t incorporate. Here are some of the main differences between the two competitors.

VantageScore	FICO
Score range is from 501 to 990 VantageScore uses letter grades to spell out your credit health: 901-990 = A or Super Prime, 801-900 = B or Prime Plus, 701-800 = C or Prime, 601-700 = D or Non-Prime, and 501-600 = F or High Risk. Takes into account 6 components of your credit report: payment history, utilization, balances, depth of credit, recent credit, and available credit. VantageScore claims to score thin file consumers more accurately by providing predicative scores for consumers with limited histories Additional features: VantageScore is based primarily on the last 24 months of actions on a consumer’s credit file Keep in mind, your VantageScore will still vary between the three credit bureaus. While they use the same scoring model, the information on your credit report may differ from bureau to bureau	FICO range is from 300 to 850 No letter grades for FICO Takes into account 5 components of credit report: payment history, amount of debt, credit history, types of accounts, and inquiries. Thin file consumers often cannot generate a credit score at all, or are scored with inflated, high scores because they have few credit actions on file

VantageScore

FICO

Score range is from 501 to 990
VantageScore uses letter grades to spell out your credit health: 901-990 = A or Super Prime, 801-900 = B or Prime Plus, 701-800 = C or Prime, 601-700 = D or Non-Prime, and 501-600 = F or High Risk.
Takes into account 6 components of your credit report: payment history, utilization, balances, depth of credit, recent credit, and available credit.
VantageScore claims to score thin file consumers more accurately by providing predicative scores for consumers with limited histories

Additional features:

VantageScore is based primarily on the last 24 months of actions on a consumer’s credit file
Keep in mind, your VantageScore will still vary between the three credit bureaus. While they use the same scoring model, the information on your credit report may differ from bureau to bureau

FICO range is from 300 to 850
No letter grades for FICO
Takes into account 5 components of credit report: payment history, amount of debt, credit history, types of accounts, and inquiries.
Thin file consumers often cannot generate a credit score at all, or are scored with inflated, high scores because they have few credit actions on file

Bottomline

The VantageScore’s particular credit scoring method is especially good news for thin file consumers and consumers who may have prior negative actions against them but have a good, recent credit history.

VantageScore is one of dozens of models in use. Whether you choose to check your VantageScore, FICO, Credit Karma, or any other score, what is more important is that you monitor and manage your credit health by checking your credit score every few weeks. Keeping track of your credit score over time, not just once or twice, will give you your most valuable insights into how to adjust your credit habits to build towards a healthy score.

Most Popular Comment

notice on your credit karma reportcard how long it takes to improve ones credit. i would humbly suggest that you study your reportcard and go into details to learn how credit works. this website is terrific at spelling out the details of credit. my hats off to them. carali, credit improvement takes years to improve. study your report card and you will understand this. my advise is to follow your reportcard's suggestions and be patient. your score may be low today, but if you follow instructions for years to come, in five years you will add 150 points to your score.

Treefan 1 year ago

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Hello Learn Vest advisers:
My VantageScore score is C "good" and Credit Karma gives 628 "poor. Which one the lenders see? I have done my best to improve my credit score and only Vantage Score seems to notice. This is so confusing. Please elaborate.
Carmen
New Learn Vest customer

carali 1 year ago

Treefan 1 year ago

"VantageScore is based primarily on the last 24 months of actions on a consumer’s credit file "

Your FICO score likey weighs older information more heavily than the Vantage score. Therefore if you have aging negatives, they could be holding your FICO down whereas the Vantage model pays them little mind.

Concentrating more on your recent history adds some leniency in it's predictions of future credit risk.

NARCOFXCW 1 year ago

The lenders likely won't see either. Lenders use FICO scores.

BungalowMo 1 year ago

THis seems to be completely FALSE. I bad things on my credit from 6 and 7 years ago and since have had impecable credit. Never been late, allways pay my bills and have an ok credit to debt ratio. The FICO give me almost a "B" area or 689 but the Vantage gives lower at a "D" and 648. Now if it tested the last 24 months then and FICO did the farther past than those scores should be reversed.

velosity 4 months ago

thank you again ck for helping us understand the credit world. although my doctoral studies were aimed at rehab., i had to take advanced statistics in my core curriculum. my point being that i especially appreciate your graphs, histograms, etc., and the hard work your statisticians are putting into ck behind the scenes. i'm just so impressed with your site and deeply grateful. wheather a person has no degree or an advanced one the credit world was a shut door to understanding. what a person thought would help credit hurt it and vice versa. ck has lifted the vail for us to see what we need to do to improve our credit and i for one am very grateful.

Treefan 1 year ago

How do you get your Vantage Score? Does it cost to get it?

newbalance 1 year ago

I just got an email from Credit Karma indicateing that they provide the Vantage Score now also. Unfortunately I cannot find it anywhere on the site.

jasonhc73 1 year ago

its listed under the score center headline on main page..hope that helps...

c7s15 10 months ago

My Vantage score is drastically lower then my regular CK score and even the new Insurance one. If it is supposed to more accurate to the recent activity this doesn't make sense as over the past year I've done a BETTER job at managing my credit and yet it is the score that is lower. I can only guess that this means a good score means that you handle your money poorly (or poor enough that it benefits the CC companies) Credit scores seem like a scam and while i thought this new vantage score was goign to change things and help people get out of debt it really seems like its a way for people have bad credit scores feel better and spend more....hmmm

wisekris 1 year ago

Absolutely!! I've done a far better job managing my credit in the last two years and my Vantage "score" is much lower than the Transrisk. It's a scam used to overcharge consumers. The banks are ****ed because they were slapped in the crash. It is their way of revenging themselves on we dirty consumers. the credit kabal will soak you until death.

pilotadjuste 11 months ago

To find the new scores, Click on the Score Center tab, then click on Update Score on the right of the page, then the new tabs for the Vantage Score & Insurance score will show up above the credit score chart.

f355chris 1 year ago

I used to have a 820 FICO score for a decade! until I didn't use an AMEX card for two years..they dropped me for NOT USING MY CARD!...so I went from a 820 score to a 720 score...go figure..Clark Howard talks about this problem. I don't use credit cards except for big items...and pay them off before finance charges incur. I have NEVER been late on any payments over 30 yrs..mortgage, car loans, credit cards..FICO and the BIG 3 are a farce. I refuse to keep a balance on a credit card just to see I paid a finance fee. So, if this is how the system works, fine. I'm frankly tired of these finance games. I'll keep my 'good' vs 'excellent' score now..one of these days the BIG FARCE THREE + FICO will get this...

jftriol 1 year ago

jftriol....call AMEX & ask for a recon. Let them know you weren't aware they'd drop you for non use. They'll likely give it back to you with the history (acct age) intact. Use it for groceries & PIF before the due date.

You'll see that FICO go back up! ;0)

BungalowMo 1 year ago

jftriol -- I agree that it's silly, BUT you don't have to pay finance fees to maintain a good credit score. If you use your credit card for a little $10 purchase each month, and then pay it off in full at the end of the month, that is considered an active card. It doesn't matter how much or how little you put on the card, just that you used it that month. You don't have to retain a balance, you just have to have something to pay off. Think about using your card for a few insignificant purchases, just to keep it active, and, as long as you pay it off on time (and in full), you will have no charges for that.

So, it doesn't really make sense that you're downgraded for those things...but, it also doesn't cost you any money to play the game. So, why not? If it saves you a percentage point of interest on a mortgage or something down the road, that can make a big difference.

swagmonkey 1 month ago

How is it that my CK score is 767 and my Vantage is a 'perfect' 990? I'm not complaining mind you, just trying to figure out if it's a boo boo or if it's 100% accurate.

So with that in mind, using the .86% FICO formula against my Vantage score, my FICO should also be 850+. Practically perfect in every way???

tvanbecelaer 1 year ago

I see you posted 5 months ago. I just started with karma today and have similar scores as you, 784 and a perfect 990. Just wondering if that leveled off, ie after 5 months, did they do a fix and you are no longer 990? I don't see how my 990 can be correct as under the report card, i have two C's. One under utilization, one under inquiries (i recently got a new mortgage). Thanks.

maltocs 7 months ago

I dont get it. I have a 751 (Excellent - by 1 pt yay!) CK score and a 756 (C) VantageScore. Also my insurance is a poor (forgot number). How is this possible. In the last two years i paid of a ton of debt and have only make positive financial moves to get my score to 750 from a 630ish. WTF????

krysolma 1 year ago

I dont really understand the newvantage score... my normal score is 768 which is quite good, but my vantage score is only 743 whichbased upon its scale is not very good (only C) ??? I have not done anyhitng "Bad" in the last 24 months ( no late payments ever...) , so why do I have a bad vantage score?

cwmcmurray 1 year ago