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Your credit score affects your financial future, so it’s important to know where your score comes from and the different ways it can be calculated. Most importantly, you should know that the score you’re seeing may not be the score your lender is seeing. Why is this, and what can you do about it?
Two major companies are responsible for billions of credit scores (this is no hyperbole) provided to lenders and consumers: FICO® and VantageScore. The difference between VantageScore vs. FICO credit scores is subtle, reflecting each company’s special calculation.
Read on to learn what goes into score calculations. This article will also tell you where to find your score, how to use it, and which score lenders use in their decisions.
Key Points
• VantageScore and FICO are major credit scoring models with different factors and weightings.
• FICO Scores dominate lending decisions, though some lenders — especially credit card issuers — use VantageScore.
• FICO and VantageScore each calculate your score in a different way.
• FICO emphasizes payment history and amounts owed, while VantageScore focuses on payment history and credit utilization.
• Free credit scores are available via banks, credit unions, and finance apps, but not free credit reports.
Why Credit Scores Are Important
Before we get into score calculation, let’s review why credit scores are so important. When you need to borrow money, you want to do it as cheaply as possible. This means you want a great interest rate and terms that help you repay your debt as efficiently as possible.
Generally speaking, the higher your credit score, the more likely you are to get the best interest rate and loan terms. Over the course of your life, a good credit score can save you a significant amount of money.
Knowing how to read a credit report and how your credit score is calculated can help you make moves to build it. Take a look at how the two major players come up with your credit score.
Recommended: What Is a Fair Credit Score?
What FICO Takes Into Account
The Fair Isaac Corporation, more commonly known as FICO, developed the FICO Score in 1989. Scores range from 300 to 850. The higher the number, the better your score.
FICO Scores are calculated based on how a consumer handles debt according to several factors, which are weighted as follows:
• Payment history: 35%
• Amounts owed: 30%
• Length of credit history: 15%
• Credit mix: 10%
• New credit: 10%
As you can see, FICO Scores give the most weight to your payment history and amounts owed. FICO also considers your length of credit history, credit mix, and new credit.
FICO has multiple versions of its credit scoring models, much like software has multiple updates. FICO provides different scoring models to lenders that serve different needs. Credit card issuers, auto loan lenders, and mortgage originators may use different FICO Scores to make lending decisions.
What’s calculated in a FICO vs. a VantageScore is subtly different.
Recommended: What Credit Score Is Needed to Buy a Car?
What VantageScore Takes Into Account
VantageScore was developed in 2006 by the three main credit bureaus: Experian®, Equifax®, and TransUnion®. Scores range from 300 to 850, just like FICO Scores. However, even though the scores are calculated on the same scale, a VantageScore will be different from a FICO Score. That’s because the factors, and how they’re weighted, are a little different. VantageScore is based on:
• Payment history: 40%
• Depth of credit: 21%
• Credit utilization: 20%
• Balances: 11%
• Recent credit: 5%
• Available credit: 3%
Naturally, this results in a different score. Since many lenders use FICO Scores and consumers often see VantageScores, some lending decisions can take consumers by surprise.
The most common VantageScore versions are VantageScore 3.0 and 4.0. A new model, VantageScore 5.0, was released in July 2026. While most lenders use your FICO Score when making lending decisions, some lenders — particularly credit card issuers — use VantageScore.
VantageScore vs FICO: The Differences
The major differences between a VantageScore and FICO Score are outlined in the table below. These include the amount of time you have to shop for a loan, the number of categories factored into a score calculation, differences in weighted categories, and length of credit history.
| FICO | VantageScore | |
|---|---|---|
| Shopping Window | 45 days | 14 days |
| Categories | 5 | 6 |
| Weighting | Amounts owed weighted more | Payment history weighted more |
Who Tends to Use VantageScore?
Some banks and credit card issuers supply VantageScores to their customers for free. Scores are provided largely for consumer education, meaning they’re used to help people understand what factors affect their credit score rather than for lending decisions.
Consumers who want to purchase a credit score will find that Equifax and TransUnion both advertise a credit monitoring service that uses VantageScore 3.0 as its model. If you’re comparing Transunion VantageScore vs. FICO, you’ll see that Experian sells a FICO Score 8 model.
Who Tends to Use FICO?
FICO claims that FICO Scores are used in 90% of lending decisions. Consumers who visit the Experian website will see that the credit score monitoring service it offers uses the FICO Score 8 model. You can also purchase your FICO Score directly from FICO.
FICO and VantageScore credit scores are used by a variety of sources to consider your credit history and credit score. These can include lenders, landlords, employers, and insurance companies. Read more about how credit checks for employment work.
It’s also possible to get a tri-merge credit report, which combines data from the three credit bureaus in one report.
Which Credit Score Costs the Least to Check?
Many people don’t know how to find out their credit score for free. While you’re entitled to a free credit report each year from AnnualCreditReport.com, that report won’t include a credit score.
Here are some ways you can find your credit score without having to pay for it:
1. Bank or credit union: Many financial institutions provide credit scores to their members. The score is often found by accessing online accounts.
2. Credit card issuer: Many credit card issuers provide credit scores to their customers.
3. Finance apps: A money tracker app or a similar business provides credit scores to its users.
By the way, pulling your credit report and checking your own score won’t negatively affect your credit score. Learn more about soft credit inquiries vs. hard credit inquiries.
The Takeaway
The two main credit score companies are FICO Score and VantageScore. Each company calculates your score in a slightly different way. Checking your credit is a great way to stay on top of your financial health. Although you may not know exactly which credit score your lender uses to make decisions, you can get a pretty good idea of your range.
A number of businesses can provide your credit score free of charge, including banks and credit unions, credit card issuers, and finance apps. Obtaining a credit score from either FICO or VantageScore can help you identify your strengths and the areas where you need to improve.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
Does TransUnion use FICO or Vantage?
TransUnion uses the VantageScore 3.0 model. This model uses information from your credit report, such as payment history and credit utilization, to calculate a credit score.
Which is more accurate: VantageScore or FICO?
Both VantageScore and FICO Score are used to make lending decisions, so the score that’s most accurate is the one your lender is planning to use. According to FICO, 90% of top lending institutions use their score to make lending decisions.
Which credit score is better: FICO or TransUnion?
TransUnion provides credit scores from the VantageScore 3.0 model. Both FICO and VantageScore can provide insights into a consumer’s behavior with credit.
Why are my FICO Score and VantageScore different?
Your FICO Score and VantageScore may differ because they’re calculated using separate scoring models. This means they consider different factors when determining your score, and those factors are also weighted differently.
Do lenders use FICO or VantageScore?
Lenders might use either FICO Scores or VantageScores when making lending decisions. The score used will vary depending on the lender and the type of credit you’re applying for.
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