Each of these scoring models weighs the measures of creditworthiness differently--and therefore end up with different scores. On top of that, each of these FICO scores and VantageScores each have an individual score, based on each of the credit bureaus.
The reason of the FICO scores, being different, is because, they're from two different Credit Bureaus (TransUnion, Equifax or Experian)... Each Credit Bureau has their own system of algorithms, that makes up a person's score...
Although your CreditWise score is different than a FICO® score and is unlikely to be the score your lender uses, your CreditWise score gives you a good indication of your credit profile.
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.
FICO® Scores are a type of credit score, but not all credit scores are FICO® Scores. Checking your FICO® Score may be more beneficial, as 90% of top lenders use FICO® Credit Scores. There are different versions of FICO® Credit Scores finetuned for different credit products (like home and car loans).
Inaccuracies on credit reports are relatively rare, but they can occur from time to time. That's why it's wise to regularly check your credit reports with the three national consumer credit bureaus (Experian, TransUnion and Equifax).
The CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model. So, it will be pretty close to your VantageScore credit score through TransUnion. However, the score reflected on CreditWise may not be the same as what you get from your TransUnion credit report.
FICO Score 8 is a base credit score that credit providers use to help figure out a potential borrower's credit risk. Your payment history, credit utilization, length of credit history, new credit inquiries, and the types of accounts you have (your credit mix), are all factors that come into play within FICO Score 8.
Scores from FICO and VantageScore typically range from 300 to 850. FICO says good credit scores fall between 670 and 739. VantageScore says good scores fall between 661 and 780.
For credit scores that range from 300 to 850, a credit score in the mid to high 600s or above is generally considered good. A score in the high 700s or 800s is considered excellent. About a third of consumers have FICO Scores that fall between 600 and 750—and an additional 48% have a higher score.
Key Takeaways. A credit score is a three-digit number that measures your financial health and how well you manage credit and debt. FICO scores are a specific type of score that lenders can use when making borrowing decisions. The FICO credit scoring system is the most widely used credit score.
The FICO scoring model is an algorithm that produces what is considered the most reliable credit scores. About 90% of lenders use FICO's model to evaluate candidates for credit.
Will using CreditWise hurt my credit score? It won't. You can use all of CreditWise's features without hurting your credit score.
VantageScore vs.
FICO scores are the most widely used scores used by lenders to determine the creditworthiness of consumers. This means more institutions use FICO over any other scoring model to decide if someone should get a loan, mortgage, or any other credit product.
In addition to the standard FICO score 8 or 9, mortgage lenders might use one of the following: FICO score 2. FICO score 4. FICO score 5.
The average FICO 8 Score measures around 700, with anything above 750 considered excellent and anything below 600 considered poor. Different factors, such as repayment history and amount of debt, are considered when calculating an individual's FICO 8 Score.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
FICO uses Equifax, whereas CreditWise uses TransUnion. Checking your score on different platforms can result in differing scores.
CreditWise uses the TransUnion VantageScore 3.0 credit scoring model, which is different from the FICO Score used by the majority of lenders. Your CreditWise score is based on the information gathered from TransUnion, one of the three major credit bureaus.
While a 675 credit score is considered good, it may not qualify for the most favorable interest rates and terms offered by lenders. You may still find several opportunities with this score, as it is still within an acceptable range for many types of credit, but a higher score could give you more options.
Why is my FICO score higher than my other credit scores? Every credit-scoring model is different. And credit scores can change based on what credit report is used to inform the model. Those differences can make some scores higher or lower than others.
You Have Late or Missing Payments
Your payment history is the most important factor in your FICO® Score☉ , the credit scoring model used by 90% of top lenders. It accounts for 35% of your score, and even one late or missed payment can have a negative impact. So, it's key to make sure you make all your payments on time.
This is because individual consumer reporting agencies, credit scoring companies, lenders and creditors may use slightly different formulas to calculate your credit scores. They might also weigh your information differently depending on the type of credit account for which you've applied.