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Fico Vs Vantagescore

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Anonymous
Not applicable

Fico Vs Vantagescore

I used Credit karma for the longest time before getting a MyFico subscription. Now Creditkarma is using Vantagescore and my Credit Karma scores have fallen like a rock. What heck is going on and why the disparagy between my Vantagescore and MyFico score?
Message 1 of 15
14 REPLIES 14
Anonymous
Not applicable

Re: Fico Vs Vantagescore

For future reference this topic is discussed a lot here and a quick forum search will usually provide the answers you seek. 

 

You have two broad categories of credit scores: 1) FICO scores by the Fair Isaac Corporation; and 2) FAKO scores which is basically everything else. Most FAKO scores are for educational purposes and not used in lending. However, some FAKO scores like the Vantage score are used by a tiny fractional minority of lenders (pretty much non-existent). Some variant of a FICO score is generally used by most major lenders. However, many of these lenders use internal scoring systems and other factors beyond just your score when making lending decisions. 

 

The world would be very simple if we only had the FICO/FAKO distinction. Unfortunately, we have dozens of FICO scores. You have different FICO scoring models like the FICO 98, FICO 04, FICO 08, and FICO 9 models. Within each of these models we have various industry enhanced variants like auto enhanced and bankcard versions. These enhanced versions typically run on a 900 scale while regular FICO versions only go up to 850 (some FICO variants below FICO 08 go up to the 830s or 840s only). 

 

When applying for a home loan, a FICO 08 score is usually useless because most home lenders pull FICO 04 or 98 scores. When applying for a credit card, a FICO 98 score is usually useless because most lenders pull the FICO 08 score. To make matters even more confusing, not all lenders follow these general patterns and some pull bankcard enhanced FICO 08 scores for credit cards (minority). To make a long story short, unless you know what score the lender is going to pull, knowing your score is not very useful. 

 

The important thing is to pull your credit report and make sure everything looks good. No missed payments, no lates, no public records, a decent credit mix of revolving and installment accounts, a moderate to long credit history, low utilization of revolving debt, and such factors that impact scoring. If all these factors are excellent, your score will likely be excellent across all models. When one or more of these areas are not so good, your scores will start varying across FICO scoring models because some put more emphasis on areas like credit utilization and other such factors. 

 

Recently, myFICO started providing more than just the FICO 08 score to those who subscribe to the 3 Bureau Monitoring Service. You can also see some enhanced variants and older variants of your EQ and EX scores (only FICO 08 for TU). While I don't recommend you subscribe to it right away, if you plan on taking a particular loan (e.g. home loan) it might make sense to subscribe. Otherwise, just pull your credit reports and work on getting your reports to look good. If you do that, all your scores will improve across all scoring models. CK is useful for reports and the Vantage score is useful to see progression of the score. Just don't focus too much on it and bear in mind that some changes might result in a Vantage score moving in the opposite direction of a specific FICO score. But in general, if your Vantage score keeps going up, chances are your FICO scores are too. 

Message 2 of 15
Anonymous
Not applicable

Re: Fico Vs Vantagescore


@Anonymous wrote:

For future reference this topic is discussed a lot here and a quick forum search will usually provide the answers you seek. 

 

You have two broad categories of credit scores: 1) FICO scores by the Fair Isaac Corporation; and 2) FAKO scores which is basically everything else. Most FAKO scores are for educational purposes and not used in lending. However, some FAKO scores like the Vantage score are used by a tiny fractional minority of lenders (pretty much non-existent). Some variant of a FICO score is generally used by most major lenders. However, many of these lenders use internal scoring systems and other factors beyond just your score when making lending decisions. 

 

The world would be very simple if we only had the FICO/FAKO distinction. Unfortunately, we have dozens of FICO scores. You have different FICO scoring models like the FICO 98, FICO 04, FICO 08, and FICO 9 models. Within each of these models we have various industry enhanced variants like auto enhanced and bankcard versions. These enhanced versions typically run on a 900 scale while regular FICO versions only go up to 850 (some FICO variants below FICO 08 go up to the 830s or 840s only). 

 

When applying for a home loan, a FICO 08 score is usually useless because most home lenders pull FICO 04 or 98 scores. When applying for a credit card, a FICO 98 score is usually useless because most lenders pull the FICO 08 score. To make matters even more confusing, not all lenders follow these general patterns and some pull bankcard enhanced FICO 08 scores for credit cards (minority). To make a long story short, unless you know what score the lender is going to pull, knowing your score is not very useful. 

 

The important thing is to pull your credit report and make sure everything looks good. No missed payments, no lates, no public records, a decent credit mix of revolving and installment accounts, a moderate to long credit history, low utilization of revolving debt, and such factors that impact scoring. If all these factors are excellent, your score will likely be excellent across all models. When one or more of these areas are not so good, your scores will start varying across FICO scoring models because some put more emphasis on areas like credit utilization and other such factors. 

 

Recently, myFICO started providing more than just the FICO 08 score to those who subscribe to the 3 Bureau Monitoring Service. You can also see some enhanced variants and older variants of your EQ and EX scores (only FICO 08 for TU). While I don't recommend you subscribe to it right away, if you plan on taking a particular loan (e.g. home loan) it might make sense to subscribe. Otherwise, just pull your credit reports and work on getting your reports to look good. If you do that, all your scores will improve across all scoring models. CK is useful for reports and the Vantage score is useful to see progression of the score. Just don't focus too much on it and bear in mind that some changes might result in a Vantage score moving in the opposite direction of a specific FICO score. But in general, if your Vantage score keeps going up, chances are your FICO scores are too. 


The funny thing about these Vantagescores and FICO scores is that for me it is exact opposite.  Every post I have read regarding this issue with their CK scores has said their scores dropped.  Mine went way up.  Myfico score was 100 points lower than the Vantagescore.  It IS very confusing.

Message 3 of 15
HiLine
Blogger

Re: Fico Vs Vantagescore

I don't even know what my credit karma score is because it is meaningless.
Message 4 of 15
Peter1142
Established Contributor

Re: Fico Vs Vantagescore


@HiLine wrote:
I don't even know what my credit karma score is because it is meaningless.

Any FICO score that is not the precise version that is being used by the lender you are applying to, of the multitude of score versions in use, is equally meaningless.

Message 5 of 15
Anonymous
Not applicable

Re: Fico Vs Vantagescore

IMO, CK vantage score is more forgiving on past history and cares about mostly recent payment history. my TU/EQ are at 700 on CK while my scores r mid 600 on myfico.com
Message 6 of 15
HiLine
Blogger

Re: Fico Vs Vantagescore

The vast majority of lenders use the FICO scores provided on the credit reports from this website. I don't pay any attention to the FICO scores that are out of date either.
Message 7 of 15
Peter1142
Established Contributor

Re: Fico Vs Vantagescore

Now that the site offers mortgage and auto enhanced scores, it is a lot better. Still, many lenders have their own bankcard enhanced FICO versions.

Message 8 of 15
Anonymous
Not applicable

Re: Fico Vs Vantagescore


@Anonymous wrote:

@Anonymous wrote:

For future reference this topic is discussed a lot here and a quick forum search will usually provide the answers you seek. 

 

You have two broad categories of credit scores: 1) FICO scores by the Fair Isaac Corporation; and 2) FAKO scores which is basically everything else. Most FAKO scores are for educational purposes and not used in lending. However, some FAKO scores like the Vantage score are used by a tiny fractional minority of lenders (pretty much non-existent). Some variant of a FICO score is generally used by most major lenders. However, many of these lenders use internal scoring systems and other factors beyond just your score when making lending decisions. 

 

The world would be very simple if we only had the FICO/FAKO distinction. Unfortunately, we have dozens of FICO scores. You have different FICO scoring models like the FICO 98, FICO 04, FICO 08, and FICO 9 models. Within each of these models we have various industry enhanced variants like auto enhanced and bankcard versions. These enhanced versions typically run on a 900 scale while regular FICO versions only go up to 850 (some FICO variants below FICO 08 go up to the 830s or 840s only). 

 

When applying for a home loan, a FICO 08 score is usually useless because most home lenders pull FICO 04 or 98 scores. When applying for a credit card, a FICO 98 score is usually useless because most lenders pull the FICO 08 score. To make matters even more confusing, not all lenders follow these general patterns and some pull bankcard enhanced FICO 08 scores for credit cards (minority). To make a long story short, unless you know what score the lender is going to pull, knowing your score is not very useful. 

 

The important thing is to pull your credit report and make sure everything looks good. No missed payments, no lates, no public records, a decent credit mix of revolving and installment accounts, a moderate to long credit history, low utilization of revolving debt, and such factors that impact scoring. If all these factors are excellent, your score will likely be excellent across all models. When one or more of these areas are not so good, your scores will start varying across FICO scoring models because some put more emphasis on areas like credit utilization and other such factors. 

 

Recently, myFICO started providing more than just the FICO 08 score to those who subscribe to the 3 Bureau Monitoring Service. You can also see some enhanced variants and older variants of your EQ and EX scores (only FICO 08 for TU). While I don't recommend you subscribe to it right away, if you plan on taking a particular loan (e.g. home loan) it might make sense to subscribe. Otherwise, just pull your credit reports and work on getting your reports to look good. If you do that, all your scores will improve across all scoring models. CK is useful for reports and the Vantage score is useful to see progression of the score. Just don't focus too much on it and bear in mind that some changes might result in a Vantage score moving in the opposite direction of a specific FICO score. But in general, if your Vantage score keeps going up, chances are your FICO scores are too. 


The funny thing about these Vantagescores and FICO scores is that for me it is exact opposite.  Every post I have read regarding this issue with their CK scores has said their scores dropped.  Mine went way up.  Myfico score was 100 points lower than the Vantagescore.  It IS very confusing.


I did not mean to say there was a particular relationship between the scores. My point was that in general they should somewhat move the same way, but specific changes could have opposite effects. This is largely because FICO scoring is dynamic and the weight of any given aspect of your credit profile changes as your overall profile changes. Thus, even if the Vantage score puts similar weight in each area, the scoring will not match. 

 


@HiLine wrote:
The vast majority of lenders use the FICO scores provided on the credit reports from this website. I don't pay any attention to the FICO scores that are out of date either.

You are correct as off the recent update where additional score versions are provided for EQ and EX scores. However, it can still be confusing for some to figure out which version of the score applies for a specific purpose. Don't get me wrong, I see the need for different scoring models. The risk of one defaulting a car loan, home loan, or credit card debt is not the same. Tweaking scoring models to serve a specific purpose can make sense. While the need for multiple scoring systems is understandable, the confusion among people is also understandable. I don't have a solution to offer and maybe a simple solution does not exist, but I am merely trying to point out that the system is confusing to many.

Message 9 of 15
racer-x
Valued Contributor

Re: Fico Vs Vantagescore

Vantage and myfico are pretty much identical.  Who knows.

Message 10 of 15
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