Aside from FICO credit rating system, there is another credit rating system which is called Vantage Credit Scoring system. There are some similarities but generally they also have a lot of difference. Basically, Vantage scoring was developed by the 3 credit bureaus (Experian, Equifax, and TransUnion) wherein the credit reports that consumers receive come from these credit bureaus.
The FICO or Fair Isaac Corporation has been around the credit monitoring industry since the 1950’s. Due to the fast increasing number of consumers and credit reports to be monitored daily, Vantage scoring came into the picture. However, their similarities could be within the degree of monitoring and providing consumers with trustworthy credit reports. But, when it comes to credit scores, they have a big difference wherein consumers are getting confused when reading their credit scores.
Here is a brief explanation of the difference between FICO and Vantage scoring. If you are wonder if they have the same credit score range well they don’t have the same range.
FICO Credit Scores – FICO credit scores will be within the range of 300 – 800.
Vantage Credit Scores – Vantage credit scores will be within the range of 501 – 990.
Vantage Scores:
901 – 990 = Grade A (FICO credit scoring: Excellent Credit Score)
801 – 900 = Grade B (FICO credit scoring: Good Credit Score)
601 – 800 = Grade C – E (FICO credit scoring: Average/High Risk Credit Score)
501 – 600 = Grade F (FICO credit scoring: Poor Credit Score)
There are a lot of analysts say that Vantage scoring is tougher when it comes to credit scoring system. There are instances wherein you can get a high credit score in FICO around 720 and this will already get you a 9 percent interest rate for credit cards. Hence, for the Vantage scoring system the credit score of the same level will get you a 15 – 20 percent interest rate on credit cards.
Basically, in this simple explanation you will understand their difference and you will understand what a Vantage scoring system is.
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