VantageScore and FICO often differ because they weigh components of your credit report differently and use unique formulas to predict risk. Your VantageScore may be lower if it penalizes recent, unpaid, or smaller collections more severely, or if it places a higher weight on recent credit utilization and shorter credit history compared to FICO.
This is likely the main culprit. Usually when you see such a large discrepancy between VantageScore and FICO, it's due to revolving utilization. VantageScore tends to be highly sensitive to utilization whereas FICO can see a decent CC usage before seeing significant score changes.
VantageScore credit scores are influenced by several different categories of information from your credit report. Some are highly influential, such as payment history, while others are less so, like how many new accounts you recently opened.
Lenders use both FICO and VantageScore, with FICO traditionally dominating, especially in mortgages, but VantageScore gaining significant ground, particularly with recent approvals for use in loans backed by Fannie Mae and Freddie Mac (GSEs). Many lenders use different scores for different products, and some even have their own proprietary models, so it's best to ask your loan officer which score they'll check.
Lenders will have the choice to report credit scores from either Classic FICO or VantageScore 4.0. For the time being, the Enterprises will not accept scores from multiple models on a given loan.
There is no official method of converting a Vantage Score to a FICO Score. Each scoring model uses different criteria and methods of pulling credit reports data; it's nearly impossible to convert. However, keeping both scores in mind can give you a much more well-rounded understanding of your credit reports health.
VantageScore and FICO score are widely used credit scoring models. Experian is one of the three main credit bureaus in the U.S. and uses both credit scoring models.
Raising your VantageScore credit score - or any credit score for that matter - comes down to managing your money responsibly. The most important thing you can do is always pay your bills on time. Set up automatic payments or reminders to help you stay on top of this task if you struggle to remember.
Chase Credit Journey: VantageScore vs FICO
Chase Credit Journey uses VantageScore 3.0, which is a credit scoring model developed by the three major credit bureaus: Experian, Equifax ® and TransUnion ®. VantageScore 3.0 provides a snapshot of a consumer's credit health and behavior.
Several studies, including one from Bank of America Securities and another by JPMorganChase, have concluded that VantageScore 4.0 is a more predictive credit score for mortgages than FICO Classic.
Both FICO and VantageScore models analyze similar categories of information from your credit reports to generate a credit score. However, each model assigns a different level of importance, or weight, to these factors. This is a primary reason why your scores from each model may be different.
Lenders use both FICO and VantageScore, with FICO traditionally dominating, especially in mortgages, but VantageScore gaining significant ground, particularly with recent approvals for use in loans backed by Fannie Mae and Freddie Mac (GSEs). Many lenders use different scores for different products, and some even have their own proprietary models, so it's best to ask your loan officer which score they'll check.
The length of time it will take to improve your credit scores depends on your unique financial situation, but you may see a change as soon as 30 to 45 days after you have taken steps to positively impact your credit reports.
Your FICO Score is a specific, widely-used type of credit score, but it's not the only credit score, as other models (like VantageScore) and lender-specific scores exist, though FICO scores are used in over 90% of lending decisions, making them the most important to know for loans and credit cards. Think of "credit score" as the general term for a risk number, and "FICO Score" as a popular brand, like how "soda" is general and "Coca-Cola" is specific.
Like FICO, you have many VantageScore credit scores. If you are viewing your free credit scores on Credit Karma, the scores you see are from the VantageScore® 3.0 scoring model. Many banks, lenders and credit card issuers, including top banks and card issuers, use VantageScore to help evaluate credit.
Common Mistakes That Can Hurt Your Credit