Why Your FICO Score is Absolutely Pointless...

GretchenWilson · ‎12-31-2025

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!

AndySoCal · ‎12-31-2025

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-an...

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

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

FIC Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 807 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 14,100, State Dept. FCU 06/2023 25,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25 Walmart One 5000 12/04/25
Banks and Credit Unions: Lafayette FCU Fortera FCU State Department FCU Redstone FCU Hughes FCU Commonwealth FCU Veridian Credit Union Utah Community Credit Union
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank BMO Langley FCU Paypal

BrutalBodyShots · ‎12-31-2025

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.

FicoMike0 · ‎12-31-2025

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!

AndySoCal · ‎12-31-2025

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.

FIC Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 807 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 14,100, State Dept. FCU 06/2023 25,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25 Walmart One 5000 12/04/25
Banks and Credit Unions: Lafayette FCU Fortera FCU State Department FCU Redstone FCU Hughes FCU Commonwealth FCU Veridian Credit Union Utah Community Credit Union
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank BMO Langley FCU Paypal

BrutalBodyShots · ‎12-31-2025

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.

BallBounces · ‎01-01-2026

Oh.

AndySoCal · ‎01-01-2026

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.

FIC Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 807 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 14,100, State Dept. FCU 06/2023 25,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25 Walmart One 5000 12/04/25
Banks and Credit Unions: Lafayette FCU Fortera FCU State Department FCU Redstone FCU Hughes FCU Commonwealth FCU Veridian Credit Union Utah Community Credit Union
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank BMO Langley FCU Paypal

crystal626 · ‎01-01-2026

@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.

6/10/2026

EX8 760
EQ8 787
TU8 782

18 cards TCL $230,250 ACL $12,792

Patient957 · ‎01-01-2026

@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.