topic Re: Why Your FICO Score is Absolutely Pointless... in General Credit Topics

Why Your FICO Score is Absolutely Pointless...

GretchenWilson — Wed, 31 Dec 2025 23:56:04 GMT

Let's say you're looking for a decent rate for an auto loan. You pay $39.95 on myFICO because you think this is the industry standard. Good news for you, you're lowest credit score is 740. You think to yourself "this is great" so you confidently apply for an auto loan with a few lenders. When you get the H4 form that shows why they wanted to give you an 11% interest rate you see your score is actually 699. Well, this doesn't make any sense at all. Come to find out they're not using FICO anymore. They chose to use your VANTAGE SCORE 4.0. Is it a coincidence that they chose the lowest score? Who knows but your gut tells you not to trust the banks.

Turns out it doesn't matter what you think becuse in 2018 the Credit Score Competition ACT was signed into law and in 2025 lenders all over the nation began using it. Well, what does this mean? Theoretically banks can look at all of your scores and then choose whichever one will provide THEM with the most profit. They are not required by law to tell you what scoring model they're using prior to pulling your credit. They are even allowed to have "in-house" proprietary scoring models that you don't have access to. Keep in mind that the VANTAGE SCORE 4.0 can include your rent and utilities history as well. Late on the rent? FU PAY ME. Having trouble paying your phone bill? FU PAY ME. Need help with the energy bill? FU PAY ME!!

Well, what can you do with this dystopian totalitarian financial system? Obey...

In all seriousness, before you apply for a loan with a bank become a memeber and see if they offer free credit score monitoring so you can see which score they might use. Chances are that score is diffrent than any score you've seen on myFICO or even CreditKarma. Your FICO is no longer the standard. Have fun out there and choose wisely!

Re: Why Your FICO Score is Absolutely Pointless...

AndySoCal — Thu, 01 Jan 2026 02:08:45 GMT

Both the Vantage 4.0 and FICO scores are predictive scores. This means that the score model looks for certain traits that the credit model considers predictive. Here are links to some articles

https://www.equifax.com/newsroom/all-news/-/story/what-is-the-difference-between-vantagescore-4-0-and-classic-fico-scores-/

https://assets.equifax.com/marketing/US/assets/vantagescore-40-product-sheet.pdf

Both Fannie Mae and Freddie Mac will accept this socre model.

Re: Why Your FICO Score is Absolutely Pointless...

BrutalBodyShots — Thu, 01 Jan 2026 03:22:15 GMT

They don't make any profit at all if you don't take out the loan in the first place.

This post is ridiculous, IMO. The statement alone that your "FICO Score is Absolutely Pointless" in and of itself is blatantly false.

Re: Why Your FICO Score is Absolutely Pointless...

FicoMike0 — Thu, 01 Jan 2026 05:00:44 GMT

ditto @BrutalBodyShots

I haven't seen any auto lender using vs.

As far as credit card issuers, the score model and bureau seems quite predictable, by lender and location. I haven't seen any big discrepancy between what I thought my score was and that reported in a credit letter.

For example, when penfed turned me down, quoting a fico9 score of 850, that was exactly what was reported elsewhere. B@$tards!

Re: Why Your FICO Score is Absolutely Pointless...

AndySoCal — Thu, 01 Jan 2026 05:07:40 GMT

FICO has a predictive score model that has had no viable competitor for a long while if at all. As a result FICO has been able to charge what the want. See link below

https://finance.yahoo.com/news/official-fico-raises-score-price-225857165.html

Now that their is viable alternative due to Fannie Mae and Freddie Mac accepting the Vantage score for loans. In some areas the Vantage Score 4.0 if you read the second link in my previous does a better job than FICO in some areas if I am reading the article correctly. Why should lenders pay more to FICO if Vantage score 4.0 is a good alternative at a lower price? FICO gets paid every time a credit report is requested with one of their score models as an add on product.

Re: Why Your FICO Score is Absolutely Pointless...

BrutalBodyShots — Thu, 01 Jan 2026 05:08:39 GMT

Right on. And, if you're going for an auto loan, you can actually ask which score they are going to use in the lending decision before you even apply, giving you the ability to arm yourself with that score prior to know exactly where you stand. OPs whole "surprise, we're using the lowest score we can come up with!" presentation is complete nonsense.

Re: Why Your FICO Score is Absolutely Pointless...

BallBounces — Thu, 01 Jan 2026 16:43:53 GMT

Oh.

Re: Why Your FICO Score is Absolutely Pointless...

AndySoCal — Thu, 01 Jan 2026 19:52:10 GMT

A credit score is a three digit number that is all it is. With FICO has numerous versions including industry specific models. Each of those versions the criteria that is used to calculate the score is different so this not a FICO score model that is going to be used. I presume my own FICO score is going to be a different number for each model and each bureau. Yes their is the possibility of ta score model being the same at two different bureaus. Add to that the industry specific models upper range is 900 not 850. See link below

https://www.myfico.com/credit-education/credit-scores/fico-score-versions

No matter what score model is being used all a consumer can do is make sure the credit data that is being used to calculate the FICO or the Vantage score is accurate. The score based on that calculation is whatever it is.

The credit data including the credit score including the score model is imported to the underwriting software. The underwriting system uses the data to come to a decision. I can understand the OP surprise on a Vantage score being used not a FICO Score. The simple fact for a longish period the FICO scores were what the vast majority of lenders used. It appears that the times are changing.

Also the lender's account with whatever credit bureau defines what score model will be pulled with each credit report that uses that account.

Re: Why Your FICO Score is Absolutely Pointless...

crystal626 — Fri, 02 Jan 2026 00:00:35 GMT

@BrutalBodyShots wrote:
They don't make any profit at all if you don't take out the loan in the first place.

This post is ridiculous, IMO. The statement alone that your "FICO Score is Absolutely Pointless" in and of itself is blatantly false.

While this is true, and the post is definitely sensational, it really is concerning that lenders are using VS 4.0 when there's no easy way for a consumer to order these scores. It's even more concerning knowing that VS models have tended to be quite brutal compared to FICO and as the OP points out, this will cost people more in financing.

Re: Why Your FICO Score is Absolutely Pointless...

Patient957 — Fri, 02 Jan 2026 00:08:18 GMT

@crystal626 wrote:
@BrutalBodyShots wrote:
They don't make any profit at all if you don't take out the loan in the first place.

This post is ridiculous, IMO. The statement alone that your "FICO Score is Absolutely Pointless" in and of itself is blatantly false.
While this is true, and the post is definitely sensational, it really is concerning that lenders are using VS 4.0 when there's no easy way for a consumer to order these scores. It's even more concerning knowing that VS models have tended to be quite brutal compared to FICO and as the OP points out, this will cost people more in financing.

You can get a free VS4 score with monthly updates with many Synchrony cards. I get mine through a JCPenny store card. It's the reason I keep the card.

I suspect VS4 will become more broadly available. As it stands, it's not consumer friendly at all for banks to use VS4 for mortgages and other loans when the consumer lacks access. This criticism is only going to get louder as VS4 gets more broadly adopted.

Re: Why Your FICO Score is Absolutely Pointless...

AndySoCal — Fri, 02 Jan 2026 01:39:04 GMT

@Patient957 @crystal626 @GretchenWilson You can get Vantage score 4.0 from State Department FCU as well. If tap or click on the score you can see the report behind the score. The link below will provide more information on the score

https://cdn.vantagescore.com/uploads/2022/09/VantageScore-4.0-UserGuide_abr_Sep22.pdf

FWIW my TU FICO V8 score is 800 and my TU Vantage score is 807

Here is a break down of the score catagories

Payment history 41%

Credit usage (Credit Utilization) 22%

Account Mix 6%

Credit Age 20%

Inquiries 11%

The catagories above each have a letter score. I recieved a B on Inquiries and Account Mix. Inquiries. My inquiries had 1 on the last months now information in the report about what would earn a lower score. My credit mix is all revolving. There is one more thing the report shows which is score rating which based on the score itself mine was an A.

My advice on this score model is to avoid app sprees. Apply for the credit you need and not want. All that said I am off to the garden to help accounts age my average age of accounts is 6 years and 11 months. I am staying out the garden applying for credit cards etc.

Re: Why Your FICO Score is Absolutely Pointless...

BrutalBodyShots — Fri, 02 Jan 2026 02:04:34 GMT

@crystal626 wrote:
it really is concerning that lenders are using VS 4.0 when there's no easy way for a consumer to order these scores.

I don't find it concerning at all, because from where I'm standing VS4 is still nearly irrelevant, much the way VS3 is.

VS4 has been out for nearing a decade, just how FICO 9 has been available to consumers for just about the same amount of time. Much the way FICO 9 never gained any real traction, VS4 hasn't either. Yeah, we can point to an example or two like Wells Fargo using F9 the same way we can point to Synchrony using VS4, but for every example you can find like that you can come up with 10+ where a different FICO score (usually a version of 8) is used. All of the VS4 taking over talk is exactly that - talk. Once we start seeing it used routinely in actual lending decisions it'll be worth talking about. FICO 9 never took off and FICO 10 hasn't taken off, despite both of them supposedly being the "next big thing" that was going to make 8 used far less.

Re: Why Your FICO Score is Absolutely Pointless...

FicoMike0 — Fri, 02 Jan 2026 02:42:10 GMT

I'll just add that assuming that a lower vs4 score results in a higher interest rate than a slightly higher fico score is probably wrong. Each score model has its own mean and standard deviation. The lenders interest calculations will be calibrated to the model used.

Re: Why Your FICO Score is Absolutely Pointless...

AndySoCal — Fri, 02 Jan 2026 03:03:48 GMT

@BrutalBodyShots Both Fannie Mae and Freddie Mac are accepting Vantage 4.0 score for all real estate loans. Both of those loan buyers have loan portfolios greater than the total value ofcChase Bank. For all the searching I have Vantage Score 4.0 was released this year. In terms of Freddie Mac and Fannie Mae this the first time that I can remember them using a non FiCO score. Some this is being driven by FICO charging $4.95 for just the score per Yahoo finance.if you can provide a link to a third party web site that shows a different release date I would like to see it.

Re: Why Your FICO Score is Absolutely Pointless...

crystal626 — Fri, 02 Jan 2026 03:31:47 GMT

@AndySoCal wrote:
@Patient957 @crystal626 @GretchenWilson You can get Vantage score 4.0 from State Department FCU as well. If tap or click on the score you can see the report behind the score. The link below will provide more information on the score
https://cdn.vantagescore.com/uploads/2022/09/VantageScore-4.0-UserGuide_abr_Sep22.pdf

FWIW my TU FICO V8 score is 800 and my TU Vantage score is 807

Here is a break down of the score catagories

Payment history 41%
Credit usage (Credit Utilization) 22%
Account Mix 6%
Credit Age 20%
Inquiries 11%

The catagories above each have a letter score. I recieved a B on Inquiries and Account Mix. Inquiries. My inquiries had 1 on the last months now information in the report about what would earn a lower score. My credit mix is all revolving. There is one more thing the report shows which is score rating which based on the score itself mine was an A.

My advice on this score model is to avoid app sprees. Apply for the credit you need and not want. All that said I am off to the garden to help accounts age my average age of accounts is 6 years and 11 months. I am staying out the garden applying for credit cards etc.

You shouldn't have to sign up with a credit union to get these scores.

Re: Why Your FICO Score is Absolutely Pointless...

crystal626 — Fri, 02 Jan 2026 03:32:25 GMT

@BrutalBodyShots wrote:
@crystal626 wrote:
it really is concerning that lenders are using VS 4.0 when there's no easy way for a consumer to order these scores.
I don't find it concerning at all, because from where I'm standing VS4 is still nearly irrelevant, much the way VS3 is.

VS4 has been out for nearing a decade, just how FICO 9 has been available to consumers for just about the same amount of time. Much the way FICO 9 never gained any real traction, VS4 hasn't either. Yeah, we can point to an example or two like Wells Fargo using F9 the same way we can point to Synchrony using VS4, but for every example you can find like that you can come up with 10+ where a different FICO score (usually a version of 8) is used. All of the VS4 taking over talk is exactly that - talk. Once we start seeing it used routinely in actual lending decisions it'll be worth talking about. FICO 9 never took off and FICO 10 hasn't taken off, despite both of them supposedly being the "next big thing" that was going to make 8 used far less.

Now that Fannie Mae and Freddie Mac are using them, they're going to start spreading like wildfire among lenders.

Re: Why Your FICO Score is Absolutely Pointless...

crystal626 — Fri, 02 Jan 2026 03:33:51 GMT

@Patient957 wrote:
@crystal626 wrote:
@BrutalBodyShots wrote:
They don't make any profit at all if you don't take out the loan in the first place.

This post is ridiculous, IMO. The statement alone that your "FICO Score is Absolutely Pointless" in and of itself is blatantly false.
While this is true, and the post is definitely sensational, it really is concerning that lenders are using VS 4.0 when there's no easy way for a consumer to order these scores. It's even more concerning knowing that VS models have tended to be quite brutal compared to FICO and as the OP points out, this will cost people more in financing.
You can get a free VS4 score with monthly updates with many Synchrony cards. I get mine through a JCPenny store card. It's the reason I keep the card.

I suspect VS4 will become more broadly available. As it stands, it's not consumer friendly at all for banks to use VS4 for mortgages and other loans when the consumer lacks access. This criticism is only going to get louder as VS4 gets more broadly adopted.

I can't get my VS4 to ever load as my reports are frozen, even after I lift the freeze it still doesn't work, so I've never seen these scores.

Re: Why Your FICO Score is Absolutely Pointless...

BrutalBodyShots — Fri, 02 Jan 2026 04:17:34 GMT

@crystal626 wrote:
Now that Fannie Mae and Freddie Mac are using them, they're going to start spreading like wildfire among lenders.

That same narrative has been around for years.

Until it actually starts happening it's not worth speculating, IMO.

Re: Why Your FICO Score is Absolutely Pointless...

BrutalBodyShots — Fri, 02 Jan 2026 04:22:20 GMT

@AndySoCal wrote:
For all the searching I have Vantage Score 4.0 was released this year.

@AndySoCal it seems your search has returned you inferior results.

It's common knowledge that Synchrony has been using VS4 for years. VS4 was released in 2017 and in 2019 Synchrony started using it.

If it was released "this year" how was it being used > 5 years ago?

Re: Why Your FICO Score is Absolutely Pointless...

LIGHTNIN — Fri, 02 Jan 2026 04:29:26 GMT

OP is upset about 11% interest rate, from a bank for a auto loan.

The interest rate depends on, how old the auto is and mileage. Oh and CS, of course. 😉

Newer autos 5-7yrs old with 75k-99k mileage, would be lower interest rate.

Older auto's are higher rates. High mileage are higher rates, also. Some lenders don't touch a auto, if mileage is over 100k or 150k. If they do, IIRC lenders add 2% more for loan.

IMO, CU's are the way to go, for a auto loan.

In 2023 summer, DH auto loan thru the CU was 6% for 5 yrs. Good luck to you. 🙂