Page 14 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know About Personal & Business Credit
Fico vs. Vantagescore--The Difference

While they primarily serve creditors the same purpose, they di er in their
functionalities. Here are the few things that di erentiate VantageScore and FICO:

· Tri-Bureaus vs. Bureau-Speci c Minimum Score Requirement
Models The requirement by FICO to score
VantageScore has a tri-bureaus model: a consumers is a bit tough. To be scored by
single model that can be used with a FICO, you will need to have one or more
credit report from the three giants— accounts that are at least six months old,
Equifax, Experian, and TransUnion. and at least one of those accounts must
While FICO operates a bureau-speci c have a history with credit bureaus in the
model, a model might have a single name past six months. Anything short of this,
but three di erent FICO scores, one for FICO won't score you.
each credit reporting agency.

On the contrary, just one account and a
· Score Range month's history is enough for
One thing you should note—the higher VantageScore to generate your score. If

your score, the better. It is an indication you are a newbie to credit or If it's been a
that you most likely will not default, or while you used one, then VantageScore is
even better, that you will pay earlier than your best bet as you may not have a FICO
your stipulated time. score.

FICO has two score ranges: the base FICO
score and the industry-speci c score. The
ranges are 300-850 and 250-900
respectively. And for the base score,
anything from 670 means you have a
good credit score.

VantageScore's two earliest versions
ranged from 501-900, while version 3.0
and 4.0 use the 300-850 score with 700
as a good credit score.

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