The Credit Score You Didn't Know You Had
For decades, FICO was the only name in town. But in 2006, the three major credit bureaus (Equifax, Experian, and TransUnion) joined forces to create a competitor: VantageScore.
Today, VantageScore is used by billions of lenders, landlords, and financial institutions. Yet, many consumers are confused about how it differs from the classic FICO score. Understanding this difference is critical to mastering your financial defense.
The Breakdown: How It's Calculated
Unlike FICO, which can be secretive about its exact formula, VantageScore 3.0 and 4.0 are more transparent about what matters. The heaviest weighting goes to your track record:
VantageScore Weighting Factors
VantageScore vs. FICO: The Showdown
While both scores range from 300 to 850, they treat consumers differently. VantageScore is generally more "inclusive," meaning it can generate a score for people with less credit history (thin files) than FICO can.
| Feature | FICO Score | VantageScore |
|---|---|---|
| Minimum History | Requires 6 months of credit history to generate a score. | Can generate a score with just 1 month of history. |
| Paid Collections | Often still count against your score (older versions). | Ignores paid collection accounts (VantageScore 3.0/4.0). |
| Hard Inquiries | Deducts points for recent credit applications. | Groups inquiries made within a 14-day window as one. |
Why It Matters for Tenant Screening & Loans
If you are applying for an apartment or a personal loan, there is a high chance the landlord or lender is using VantageScore. Because it is friendlier to those with "thin" credit files, it has become a favorite for screening tenants and approving smaller loans.
Pro Tip: Don't panic if your FICO and VantageScore numbers are different. It is normal for them to vary by 20-40 points. Focus on the trends, not the exact number.