FICO vs VantageScore: Which Credit Score Matters?

Shawn Lane
Consumer Credit Expert

You’re probably aware that a high credit score is the single most important factor in securing a loan. But did you know that you have more than one credit score?

FICO and VantageScore are the two main credit scoring models used by lenders. They each take a similar, but slightly different approach to calculating your score.

If you’re worried about securing the best rates on your next loan, you might be wondering which score the lender is most likely to use. Read on for the answer to that question and more.

How FICO and VantageScore are Similar

FICO and VantageScore are the two main companies that provide credit scores for lenders, credit card companies, employers and more. Both use the same general criteria to compile a score, but each weigh the individual factors differently.

According to VantageScore, the following factors make up a credit score:

● Credit usage and available credit: extremely influential

● Credit mix and experience: highly influential

● On-time payment history: moderately influential

● New accounts opened: less influential

● Age of credit history: less influential

Here’s how FICO describes their credit score calculation:

● Payment history: 35%

● Credit utilization: 30%

● Length of credit history: 15%

● New credit: 10%

● Credit mix: 10%

Neither FICO or VantageScore use your income, gender, ethnicity, or net worth to calculate your credit score. Both companies are also constantly updating their scoring algorithms.

How FICO and VantageScore are Different

FICO was the original creator of the credit score and has been around since 1956. VantageScore was created in 2006.

It’s not uncommon to see a discrepancy between your FICO and VantageScore numbers because of the differences in approach. FICO may decide that a recent late payment will decrease your score by 80 points, while VantageScore might only dock you by 65 points. Neither company shares the exact calculations, so it’s hard to give specific reasons why your score might vary.

Another key difference is that you must have a credit account open for six months or more to have a FICO credit score, but you only need a credit account open for one month to have a VantageScore.

FICO also produces different scoring models for other lenders, so the score an auto lender sees will be different than what a mortgage lender sees. Most FICO models range from 300 to 850, but a few range between 250 and 900. VantageScore 3.0 only has one score range between 300 and 850.

VantageScore and FICO also define credit scores differently. If your credit score qualifies as an “excellent” VantageScore, it may only be a “very good” FICO score.

Here’s how FICO categorizes credit scores:

● Exceptional: 800-850

● Very good: 740-799

● Good: 670-739

● Fair: 580-669

● Very poor: 300-579

VantageScore uses the following categories:

● Excellent: 781-850

● Good: 661-780

● Fair: 610-660

● Poor: 500-600

● Very poor: 300-499

Which Credit Score Will My Lender Use?

Most free credit score sites only show the VantageScore credit score, but more than 90% of banks and lenders use the FICO score to determine your loan or credit card eligibility. Landlords who check your credit will often see a VantageScore.

When you apply for a loan or credit card, you can read the terms and conditions or contact the lender to find out what scoring model they use. Having said that, it’s a fair guess that they’ll use your FICO score.

The Latest Information: 2025

As of 2025, the FICO vs VantageScore landscape is changing dramatically—especially in the mortgage market.

New FHFA Guidance Shakes Up Mortgage Lending

In July 2025, the Federal Housing Finance Agency (FHFA) approved the use of VantageScore 4.0 alongside FICO 10T for mortgage underwriting through Fannie Mae and Freddie Mac—two entities that account for nearly half of U.S. mortgage originations (WSJ). This is a historic shift: for decades, only FICO was accepted. While lenders are not required to switch immediately, the move signals growing recognition of VantageScore as a reliable alternative.

VantageScore’s Expanded Reach and Predictive Power

Recent studies show VantageScore 4.0 can predict mortgage defaults with greater accuracy than older FICO models. It identified up to 13% more defaults, delivered a 3.8% predictive lift, and scored 33 million additional consumers, including 5 million who may now qualify for mortgages thanks to the inclusion of rent, utility, and telecom data (VantageScore Press Release).

This is especially important for first-time buyers, gig workers, and consumers with limited credit histories who have often been excluded under traditional scoring models.

FICO’s Counterpunch with Version 10T

Not to be outdone, FICO has introduced FICO 10T, which it claims is more predictive of loan risk than VantageScore 4.0. Some independent studies suggest FICO 10T is five times more accurate than the older Classic FICO models still widely used in mortgage lending (Mortgage Underwriters News).

Still, the adoption of new models will take time. Many lenders remain cautious, and transitions are expected to roll out gradually over several years.

The Bottom Line

Even though there are some key distinctions between FICO and VantageScore, the basic principles still apply to both when it comes to increasing your credit score. Pay your bills on time, keep your credit utilization low and avoid closing old accounts. Abiding by those rules will improve both your FICO and VantageScore credit scores over time.

Do you have credit questions or need help improving your credit scores? Schedule a free credit analysis with a Financial Renovation Solutions credit consultant today.

Shawn Lane

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