![]() There are different ways this factor may impact your scores. With VantageScore 3.0, it’s the top factor but with VantageScore 4.0 it’s “moderately influential.”ĭebt: Revolving debt is also a substantial factor and it is heavily weighted toward credit card debt. With FICO scores, this factor generally makes up around 35% of your score. (A recent late payment can drop your score as much as 100 points!) The more recent the late payment, the more it affects your scores, and the greater the number of late payments, the more they affect your scores. Payment History: Late payments hurt your credit scores. These factors are included in most credit scoring models, but the weight they carry (in other words, how much they impact your scores) varies by scoring model. If you are using a credit monitoring service to view your VantageScore, you are likely to see a VantageScore 3.0. VantageScore, by contrast, has four score versions and 4.0 is the latest version. For example, for mortgage lending, lenders are likely to pull a FICO Score 4 from TransUnion, a FICO Score 2 from Experian, and a FICO Score 5 from Equifax. You can also see how different models are available through each bureau. This chart from illustrates different credit scoring models most commonly used (FICO score only):Īs you can see, different scoring models may be used by mortgage lenders, auto lenders and card issuers. They come in different versions, referred to as “models.” These scores are updated over time, and some credit scoring models are used for specific types of lending such as auto loans or bank cards (general purpose credit cards.) Which credit scores do lenders use? Model: The credit scoring model used is different That means you can get your credit score from the same bureau the same day and the actual number may be different depending on whether it’s a FICO score or VantageScore. But each one may approach the analysis in a somewhat different way. These are often referred to as “custom scores.”Įach score is intended to measure a certain type of risk of a borrower based on information in their credit report. They may use information from one of the credit reporting agencies but also customize the score to their customer base. Sometimes these are used by lenders, and other times they are “educational credit scores” offered to consumers, but not used by lenders to make credit decisions.įinally, financial institutions may create their own proprietary scores that are not available to the public. In addition, each of the credit bureaus may create their own proprietary credit scores. In 2006, the VantageScore was created as a joint venture among credit bureaus Experian, Equifax, and TransUnion to compete with FICO scores. ![]() FICO (formerly Fair Isaac Company) started creating credit scores in the late 1950s. Source: The company that developed the score is differentįICO scores are the most commonly used credit scores. If you don’t get your full reports from another source, you can check them at, the official free credit report website. That’s why it is a good idea to review your credit reports with each of the major consumer credit reporting agencies. For example, a collection account may appear on one of your credit reports and not another. These credit reporting agencies don’t share information with one another and it is possible there are differences in your reports from each of these bureaus. And that information comes from one of the three main consumer credit bureaus: Instead they provide the formula used to evaluate the information in a consumer credit report. FICO and VantageScore don’t have any information about how consumers handle their bills. The first thing to understand is that there are three major credit reporting agencies and two companies that create credit scores-mainly FICO and VantageScore. Bureau: Scores are obtained from different credit reporting agencies Reduce the pain in financing with streamlined applications, instant offers and approval rates that are 3.5X higher than industry averages.
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