What’s The Difference Between A FICO Score And A VantageScore?

There are two major scoring models in the U.S. credit industry: FICO® -the industry leader- and VantageScore®. You may not have heard of the VantageScore, but it was designed by the three credit reporting agencies several years ago and is gaining in importance, partly because this score works with all three credit reporting agencies. Whereas you may have a slightly different credit score when it comes to your FICO, your VantageScore will be the same with all three agencies. Currently, it exists in all credit categories except the mortgage market, but it’s still important for you to know about.

See, the VantageScore can help people get credit that they can in turn use later to get a mortgage, for one thing. The VantageScore provides credit scored for the millions of adult consumers who have shied away from taking out lines of credit. It provides credit scores for this group. It’s highly predictive and consistent. Without it, many millennials wouldn’t be able to get approved for auto loans, because they have virtually no credit history. Many believe that student loans will benefit their credit scores, but credit agencies look especially at lines of credit that are current. When Millennials manage to pay off their student loans, those lines of credit close and many Millennials, shy of taking on debt, never get more credit.

Here are some differences between the current FICO and VantageScore methods:

  • VantageScore uses one three-bureau model.
  • FICO uses three one-bureau models.
  • FICO required credit accounts older than six months with prior activity too.
  • VantageScore can produce a score even with one account.
  • VantageScore can produce a score even with accounts younger than six months old.
  • FICO scores range between 300 and 850 with a good score being 670.
  • VantageScores recently upgraded to a 300 to 850 range but, you will shoot for a score of at least 670.
  • VantageScore also checks to see if you usually only make minimum payments.
  • FICO ignored the fact that you might make only minimum payments.
  • The most recent FICO ignores collections accounts with unpaid balances under $100.
  • The most recent VantageScore considers collections accounts with low balances.
  • VantageScore doesn’t generate industry-specific scores.
  • FICO can produce industry-specific scores.

Late last year, the FHFA, which oversees Fannie and Freddie, considered allowing the use of another credit-scoring system besides just the FICO for mortgage considerations. VantageScore is able to assign a credit score to about 30 million more consumers than FICO. Of those 30 million, around 7.6 million of those potential homebuyers would likely be eligible for a Fannie or Freddie mortgage.

Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties and all of our surrounding areas. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty our site is directly connected to our local MLS and is updated with new homes every hour. By signing up for New Listing alerts you can stay on top of the newest homes for sale and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!

Start your Home Search now

Popular Jasper Indiana Home Searches:

Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Beautiful 4 bedroom, 2 bath home has alot to offer. Over 2100 square feet of space, alot of storage, and large living spaces on a large lot. Kitchen has abundant cabinet space and large enough for an island to be added. The kitchen appliances will be staying with the home. There is a basement, detached garage and the yard is also very spacious. $179,900 Active

201 Main Street Holland, Indiana

4 Beds 2 Baths 2,160 SqFt 0.280 Acres

Listing courtesy of DeAnna Hoffman from ERA FIRST ADVANTAGE REALTY, INC.

This is a clean, hard to find home on Jasper’s South East side. It features 3 bedrooms, 2 full baths, lots of closet space and a full basement. The home is located in the Holy Family area on a dead end street. Enjoy the summer evenings in the heated & cooled all seasons room. The yard is partially fenced and has manicured landscaping. The finished basement has an excellent living area, wet bar with refrigerator, electric fireplace, full bath and a large unfinished storage area. The seller will include the pool table, bar stools, kitchen appliances, basement refrigerator, and washer & dryer. Seller is, also, offering a one year home warranty. $244,900 Active

1149 Hasenour Avenue Jasper, Indiana

3 Beds 2 Baths 2,454 SqFt 0.332 Acres

Listing courtesy of Annette Wigand from ERA FIRST ADVANTAGE REALTY, INC.

Cute 4 bedroom, 2 full bath home is located in Jasper. This home has an updated B-dry system, with many other updates such as new laminate flooring and remodeled main floor bathroom. This spacious home is move-in ready to start making new memories. It has on street parking as well as a side driveway. $220,000 Active

610 E 14th Street Jasper, Indiana

4 Beds 2 Baths 2,280 SqFt 0.120 Acres

Listing courtesy of Josseline Carr from RE/MAX Local.

Privacy Settings