A comparison of FICO and VantageScore credit scoring models, FICO dominating market share.

From Yahoo Finance: 2025-05-22 12:36:00

Before credit scores, creditors relied on various methods like personal judgment to assess borrowers. FICO changed the game with a three-digit score reflecting debt repayment history. Most use FICO, but 10% use VantageScore, impacting approval odds. FICO, established in 1989, dominates lending decisions with credit score models based on payment history and credit length. Scores range from 300 to 850, with 670-739 considered “good.” VantageScore, created in 2006, aims for consistent scores across Equifax, Experian, and TransUnion. Like FICO, it assesses creditworthiness based on payment history, debt balances, and new credit applications. While both FICO and VantageScore use similar factors, the weighing differs. FICO holds market share, while VantageScore can generate scores sooner for limited credit histories. Scores can vary between the two companies. Many financial institutions offer free FICO or VantageScore access. Options include Chase Credit Journey, CapitalOne CreditWise, and signing up for My Money from Yahoo Finance. For more options, check the VantageScore website or sign up for FICO’s Free Plan. FICO scores are more popular with creditors for loan approvals. Conversion between VantageScore and FICO scores is not possible due to different calculation methods.



Read more at Yahoo Finance: How these two major credit scoring models compare