Credit Score Using FICO Score vs VantageScore
FICO isn’t the only number used to determine your credit risk — the score that counts is the one your lender uses. There is no single credit score number — the compilers of the widely accepted FICO Credit Score allow lenders to customize their system, so different lenders produce different scores.
Plus, each of the credit bureaus “Experian, Equifax and TransUnion” has a proprietary scoring model. As if that weren’t enough, the credit bureaus together invented VantageScore a few years ago to compete with FICO.
Different scales, different scores — FICO scores range from 300 to 850 but you’ll need about 760 or better for the best mortgage rates — a score of 720 should be sufficient to get you the best deal on an auto loan.
About 10% of lenders now use VantageScore, which ranges from 501 to 990 and has corresponding letter grades from A to F. The best rates go to borrowers with scores in the A range (above 900). If you are denied a loan or given less than the best rate, a lender must tell you the score it used, along with the corresponding range and factors that adversely affected your score.