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Vantage Score VS Fico Score

Vantage scores and FICO scores are different credit score. FICO the original creator of the FICO score, was not involved in the creation of the vantagescores new formula.

The big 3 credit bureaus – Experian, Transunion and Equifax have advertised the VantageScore as something that will help banks and lenders further drill down into the subprime categories. Subprime lenders are banks or other lenders dedicated to borrowers with less than perfect credit or harder to substantiate credit.

By creating the VantageScore the bureaus hope to one day eliminate FICO. This will probably never happen as FICO is so embedded in lenders systems.

The FICO score bases its credit scoring formula on five categories of information, while the VantageScore uses six.

FICO Score

· 35% payment history

· 30% level of debt

· 15% age of credit history

· 10% types of credit

· 10% credit inquiries

VantageScore 3.0

· Payment history 40%

· Age and type of credit 21%

· Percent of credit used 20%

· Total balances/debt 11%

· Recent credit behavior and inquiries 5%

· Available credit 3%

VantageScore 2.0

· 32% payment history

· 23% utilization

· 15% balances

· 13% depth of credit

· 10% recent credit

· 7% available credit

Both the FICO and VantageScore credit scoring formulas give about the same amount of percentages for payment history and new credit

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