What are the two most well known credit scores? (2024)

What are the two most well known credit scores?

VantageScore and FICO are the credit-scoring companies most commonly used by lenders. Credit-scoring companies each have their own unique credit-scoring models for determining credit scores. Since there are multiple credit-scoring companies and multiple credit-scoring models, consumers have multiple credit scores.

What are the most well known credit scores?

FICO ^® Scores are the most widely used credit scores—90% of top lenders use FICO ^® Scores.

What are the two major credit scoring systems?

Two of the biggest companies when it comes to credit scoring models are Fair Isaac Corporation, or FICO, and VantageScore. VantageScore is the result of a collaboration between the three nationwide credit bureaus – Equifax, Experian and TransUnion.

Which FICO Score is most accurate?

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan. There's a lot to learn about credit scores and credit reports and having more than one credit score can get confusing.

What is the difference between CreditWise and FICO?

CreditWise uses the TransUnion VantageScore 3.0 credit scoring model, which is different from the FICO Score used by the majority of lenders. Your CreditWise score is based on the information gathered from TransUnion, one of the three major credit bureaus.

Is CreditWise accurate?

Is CreditWise accurate? CreditWise gives you an accurate representation of your credit health, as it sources your credit information directly from your TransUnion credit report and updates your VantageScore® 3.0 credit score as often as daily.

Which credit score is more accurate Equifax or TransUnion?

Neither your TransUnion or Equifax score is more or less accurate than the other. They're just calculated from slightly differing sources. Your Equifax credit score is likely lower due to reporting differences. Nonetheless, a “fair” score from TransUnion is typically “fair” across the board.

Is FICO or VantageScore more important?

Which credit score will a lender check when you apply for a loan? Although VantageScore credit scores have been around for about 15 years, the FICO Score is still the preferred choice of most lenders. In the U.S., lenders use FICO Scores in 90% of lending decisions.

Do car dealers use FICO or Vantage?

What credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage. We're going to take at look at FICO® since it has long been the auto industry standard.

Do home lenders use FICO or Vantage?

The credit score used in mortgage applications

While the FICO^® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO^® Score 2 (Experian) FICO^® Score 5 (Equifax) FICO^® Score 4 (TransUnion)

What FICO score do most banks use?

What is a good credit score to buy a house?

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.

Which credit score is used to buy a house?

The most commonly used FICO Score in the mortgage-lending industry is the FICO Score 5. According to FICO, the majority of lenders pull credit histories from all three major credit reporting agencies as they evaluate mortgage applications. Mortgage lenders may also use FICO Score 2 or FICO Score 4 in their decisions.

Why is my FICO higher than CreditWise?

Both FICO and CreditWise use one of the three nationwide consumer credit reporting companies: Equifax, Experian, TransUnion. FICO uses Equifax, whereas CreditWise uses TransUnion. Checking your score on different platforms can result in differing scores.

What is a good CreditWise score?

FICO considers anything between 670 and 739 a good credit score. And VantageScore says good credit scores fall between 661 and 780. Scores above those might be considered very good, excellent or exceptional.

Why is my FICO score higher than CreditWise?

When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.

How far off is CreditWise?

Accuracy and Comparisons: While no credit score tool can claim 100% accuracy, CreditWise, like other bank-provided scores, tends to be within a few points of the scores from different banks.

How off is CreditWise?

Credit Wise from Capital One uses the Vantage credit scoring model, with your TransUnion credit report. Vantage is a perfectly valid scoring model, but it's not wisely used by lenders. Rather, around 85% to 90% of lenders use some version of FICO.

Does CreditWise hurt credit score?

No. Using CreditWise and the Credit Score Simulator won't hurt your credit score. That's because CreditWise uses soft inquiries to find your credit information. This type of credit check won't show up on your credit report when potential lenders view it.

Do car dealerships use Equifax or TransUnion?

Equifax and Experian are the most commonly used credit bureaus by auto lenders. They offer services that are directed specifically at the auto industry, and each gets a portion of their revenue from the industry.

Which credit score is used to buy a car?

Auto lenders use a special reporting system called FICO® Auto Score when determining the creditworthiness of a potential customer. The three credit reporting bureaus that contribute information to your FICO® Auto Score are TransUnion®, Equifax® and Experian™.

What credit score is needed to buy a car?

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

What is the current average credit score in the US?

The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

Which score is closest to FICO?

VantageScores tend to track similarly to FICO scores, because both weigh many of the same factors and use the same data from the credit bureaus.

What credit score is the cut off point for high risk?

Credit scores under 580 are considered in the subprime range for lenders. Very few lenders will consider even approving a line of credit or a loan with this level of credit as it typically suggests that the borrower has multiple delinquent payments, bankruptcies, or liens issued within the past 10 years.