Decoding Credit Scores: Vantage Vs FICO
“Money without financial intelligence is money soon gone”
- Robert Kiyosaki
Kick the credit headache and grab the caffeine
As you sip your morning coffee, let’s dive into the fascinating world of credit scores. If you’ve ever checked your credit score on different websites, you might have noticed variations. Why does this happen? It's so annoying! Which one is ACTUALLY my score.... Finish your coffee and focus, we’re about to demystify it all.
Why the Discrepancy?
Think of your credit scores like your fingerprint—unique to each person. But here’s the twist: different monitoring sites use distinct algorithms to calculate these scores. It’s like having multiple hairstylists—each giving you the same style but with their own techniques and twist. Let’s meet our contenders:
VANTAGE
The "fun one"
Ranges from 300 to 850.
Factors in payment history, credit utilization, age of credit, and more.
Popular among lenders and consumers alike.
Tip: Keep your credit card balances low to boost your VantageScore.
FICO
The OG (Original Gangster) of credit scores.
Also ranges from 300 to 850.
Considers payment history, credit mix, new credit, and length of credit history.
Lenders love FICO like moms love Target runs.
Tip: Pay your bills on time—FICO notices!
So why the gap?
Data sources for one. Vantage score pulls data from all three bureaus. FICO may use just one bureau, dependent on the lender. That in itself will give a variation in scoring.
Secondly, is how categories are weighted within each scoring system. Vantage places an emphasis on recent behavior where as FICO watches for long-term patterns. To place it in a real life scenario; You just paid a credit card down under 10%. Vantage is clapping ecstatically like a proud mother and FICO is giving the subtle head nod of approval that comes from dad.
Lastly, credit mix. Vantage Scores give more weight to for diverse credit files, think a mix of loans, cards etc, where as FICO likes a more balanced credit mix. How to satisfy them both? mix it up. Don't go card crazy and make vantage proud while FICO is waiting on you to prove credit worthiness on some type of installment loan.
The Alignment Quest of Credit Restoration
POV: You're at Target with your eye on the new season throw pillow while your scores are playing hide and seek! Enjoy your shopping! There is hope and we do have a plan! With the right credit coach, the long term or end goal is for your scores to align, or at least be in the same playing field no matter which system you check. Here are a few quick tips to keep you grounded and aware while you're still working
Know Your Scores:
Check both VantageScore and FICO.
Awareness is power
Consistent Behavior:
Pay bills on time (like you’re chasing a Black Friday deal).
Keep credit card balances low (think long term).
Consultation Time!
Ready to level up your credit game?
Schedule a consultation with a board certified credit consultant (not a tiktok influencer)
We’ll align those scores faster than you can say “Target run.”
In conclusion
Remember, credit scores are like your financial GPS. Whether you’re shopping at Target or eyeing that dream home, alignment matters.
Other resources to keep you in the "Credit Know"
Chain Breakers Financial Facebook Group : Tips on finances, credit and homeownership
