The Differences Between Fico & Vantage Scores


The Different Requirements

First, Vantage can score many more people due to the differences of requirements between the two.  Vantage only requires one month of credit history with an account reported to a credit reporting agency within the past two years.  Fico requires six-months minimum of credit history and at least one account reported to the credit reporting agency in the past six-months.  Because of Vantage’s less strict requirements, they are the best option for those whom are new to credit or if a person has not been actively using credit.

How they Score is Different

Fico scores range from 300 to 850.  They obtain that credit scoring module by calculating the credit reports of millions of anonymous consumers, which is gathered separately from each of the three credit reporting agencies.  When a client has a higher score, they consider the client lower risk.  The lower the score, the higher the risk.

Vantage scores are also on a range from 300 to 850, with the higher the score equating a lower risk for the creditor, just like Fico.  The biggest difference about how Vantage develops these scores, is that it uses a credit scoring model that combines a set of consumer credit files to come up with one formula that is used by all three bureaus.

Low-Balance Collections

For Vantage, when it comes to third-party collection items on your report, they ignore paid collections accounts.  It is important to know, that even though Vantage ignores the paid collections, some lenders may require that all collections are verified as paid before issuing you a loan.

Late Payments

The biggest difference between late payments with Fico and Vantage, is that Fico treats all late payments the same.  It doesn’t matter what the loan is in relation to, it will all appear the same on your Fico score. 

Vantage is stricter with late mortgage payments.  With a late mortgage payment, Vantage does penalize the consumer more.

Credit Inquiries

First, you should know that hard credit inquiries only affect your credit minimally for Vantage and Fico.  They both offer benefits that the other does not offer when it comes to multiple credit inquiries impacting your credit report. 

  • They both treat multiple inquiries within a certain period as a single inquiry and don’t count each one separately.  Fico uses a  45-day span for their timeframe while Vantage uses a 14 -day frame.
  • Even though Vantage has a smaller timeframe – they use that special inquiry timeframe for all types of inquiries.  Fico only applies that special timeframe to mortgage, auto and student loans.

It is important to know that those inquiries are still not going to impact your score too much.  Now, if you are wanting to qualify for a mortgage you should know this information, because even a couple of points lower could impact your approval rate.