VantageScore

Just like other popular credit score scoring models, a VantageScore helps lenders determine the likelihood you are to pay back a loan in a timely manner. Developed in collaboration by the three national credit reporting companies – Experian®, TransUnion® and Equifax®, a VantageScore uses similar scoring methods to FICO but with slightly different results.

differences between VantageScore and FICO

Length of Review – A VantageScore only requires one month of credit history and one credit account (such as a loan or credit card) reported within the last two years. A FICO score requires at least six months of credit history and at least one credit account reported in the last six months.

Consumer Friendliness – Around 30-35 million more people have access to their VantageScore while deemed “unscoreable” by FICO, because they don’t meet FICO requirements.

Alternative Data – VantageScore will accept alternative scoring data, such as rent and phone payments if they have been reported to the major credit bureaus. FICO does not accept these types of scoring data.

Late Payments – If you have a history of late payments, your VantageScore or FICO score will reflect that, but the impact can be different between the two. VantageScore treats various late payments differently. Mortgages carry a heavier penalty than any other type of credit. FICO judges all late payments the same, whether it’s your small credit card or large mortgage, so even the smallest missed payment can make a large impact in your overall FICO credit health.

similarities between VantageScore and FICO

Score Ranges – Previously, there have been small differences in scoring levels, but both now use a scale of 300 to 850, which makes comparing scores easier.

File Sourcing – Both scoring methods gather consumer credit files from TransUnion, Equifax and Experian.

Rating Criteria – Both scoring systems use the same basic criteria for rating consumers:

• Payment History
• Length of Credit
• Types of Credit
• Credit Usage
• Recent Inquiries

Paid Collection Accounts – Any collection accounts that are paid off, no longer have a negative impact on your score through either scoring system.

Multiple Hard Credit Inquiries – If you find yourself applying for multiple methods of credit in a short period of time, both scoring systems will apply the same disadvantage towards your score.

check your VantageScore for free

One of the many perks of being a BlueOx Credit Union member is we provide you with your updated VantageScore* four times per year, completely free. These quarterly updates are done through soft pulls of your credit, so rest assured they have absolutely no impact on your score. Checking your VantageScore is as easy as a few clicks of a mouse on a desktop computer within Online Banking, or a few taps on your connected device in our Mobile App.

*Loan rates are not solely determined based off of your VantageScore credit score. A full credit report will need to be pulled to determine the rate you are qualified for.