- VantageScore is a credit scoring model created by the main credit bureaus: Experian, Equifax, and TransUnion.
- Like FICO, VantageScore ranges from 350 to 800 and grades consumers from poor to excellent.
- VantageScore calculations heavily weigh payment history, length of credit history, and credit utilization.
While the majority of lenders still use FICO scores when making lending decisions, many also use a credit-scoring algorithm called VantageScore. "Being in the second position in the credit score space is still a really good place to be, given the massive volume of credit scores used every year," says John Ulzheimer, a credit expert and former employee of FICO and Equifax.
Here's everything you need to know about VantageScore, how VantageScore calculates your credit score, and how to check your VantageScore.
What is VantageScore?
VantageScore is a credit scoring model created in 2006 by the three major credit bureaus — Experian, Equifax, and TransUnion. It's a distant runner-up to FICO, the leading credit scoring model, but a significant portion of lenders use VantageScore when assessing your credit history.
VantageScore measures your risk level as a borrower from a scale of 300 to 850, just like FICO. The higher your credit score is, the more likely you are to pay your outstanding debts. With a higher credit score, you can qualify for more rewards on credit cards, lower interest rates, and higher credit limits.
There are four iterations of VantageScore, from 1.0 to 4.0. While VantageScore 4.0 is the latest model, released in 2017, VantageScore 3.0 is the most popular VantageScore model among lenders.
VantageScore ranges
VantageScore 3.0 and 4.0 have ranges from 300 to 850, which is separated into five risk categories. A good VantageScore starts at 661. An excellent credit score starts at 781.
The ranges break down as follows:
| Credit Score Category | Score |
| Very Poor | 300-499 |
| Poor | 500-600 |
| Fair | 601-660 |
| Good | 661-780 |
| Excellent | 781-850 |
How VantageScore differs from FICO
Because VantageScore was created as a competitor to FICO, they operate similarly. Both scoring models operate on a 300-850 scale, but they are different.
"Think Pepsi and Coke," Ulzheimer says. "It's that simple."
However, your VantageScore will likely differ from your FICO score. This is because VantageScore weighs information on your credit report differently when it calculates your credit score. In addition, VantageScore updates more frequently, reflecting changes in your credit activity faster. Here is the full breakdown of both FICO and VantageScore:
| FICO | VantageScore 3.0 |
Payment history (35%) Credit balance (30%) Length of credit history (15%) New credit (10%) Mix of credit accounts (10%) | Payment history (40%) Length & type of credit (21%) Percent of credit used (20%) Total debt/balances (11%) Recent credit behavior and inquiries (5%) Available credit (3%) |
While FICO and VantageScore weigh payment history equally, it's worth noting that FICO weighs new credit — which considers recent hard inquiries — twice as heavily as VantageScore.
Beyond the calculation framework, VantageScore and FICO differ in how certain pieces of information are factored into credit scores:
Debt in collections: VantageScore 3.0 and 4.0 do not factor paid collections into your credit score while FICO 8, the most popular of FICO's credit scoring models, does. However, FICO 9 also doesn't factor paid collections into your credit score calculations.
Both FICO and VantageScore ignore small debts in collections. FICO ignores collection accounts under $100 and VantageScore ignores accounts under $250.
Rent reporting: Rent reporting is a relatively new method for consumers to build credit by reporting monthly rent payments to the credit bureaus. VantageScore 3.0 and 4.0 both include reported rent. On the other hand, FICO 8 does not factor rent into your credit score calculations regardless of whether it's reported or not.
VantageScore 4.0
VantageScore 4.0 is the latest generation of the credit scoring model, released in 2017. Unlike previous models, VantageScore 4.0 takes into account "trended data." Trended credit data looks at the balances on your lines of revolving credit (credit card balances) for the past 24 months to predict future performance. "That data is enormously predictive of risk," Ulzheimer says.
With an additional metric to keep track of, VantageScore 4.0's new calculation distribution changes slightly. Here's the full breakdown of how VantageScore 4.0 calculates your credit score:
| Factors | Weight |
| Payment history | 41% |
| Age/Mix | 20% |
| Utilization | 20% |
| New Credit | 11% |
| Balance | 6% |
| Available credit | 2% |
In October 2022, the Federal Housing Finance Administration (FHFA) approved VantageScore 4.0 and FICO 10T for use by Freddie Mac and Fannie Mae. This means that when these credit scoring models are implemented in a few years, lenders will be required to provide FICO 10T and VantageScore 4.0 when credit scores are requested.
Why VantageScore matters
Many lenders use VantageScore to determine creditworthiness for loan and credit card approvals. Your VantageScore can also be used to set interest rates and other loan terms; these scores can also decide apartment rental decisions and insurance premiums.
How to improve your VantageScore
As with any other credit reporting agency, paying your bills on time is the No. 1 thing you can do to improve your VantageScore. It is also important to keep your credit utilization low, preferably under 30%, and to build a positive credit history of borrowing and repaying your debts on time.
Checking your score regularly will give you a solid picture of your credit profile and allow you to catch any inaccuracies early so you can dispute them.
There are plenty of free credit monitoring services that offer your VantageScore credit score, such as CreditWise. Additionally, many of the services listed in our guide to the best credit monitoring services will display your VantageScore 3.0 credit score.
Frequently asked questions about VantageScore
VantageScore credit scores cannot be converted to FICO scores as they are calculated differently. That said, because they are different numeric interpretations of the same information on your credit report, you can view your credit report to understand the foundation on which both your VantageScore and FICO scores are calculated.
The average VantageScore credit score is 701 as of December 2023.
How long it takes to improve your VantageScore will depend on your current credit situation, but usually, you can see a noticeable improvement in your score within a few months by making on-time payments, keeping your credit utilization low, and managing your credit mix. Significant score increases take longer to achieve through positive credit activity over time.
