You may have seen or heard about the new VantageScore offered by the three credit agencies, Experian, TransUnion and Equifax. VantageScore is a credit score based on the same information as you FICO score, but it uses a different formula and results in a different score. Almost all banks use the FICO score and not the VantageScore. When you check your credit online, make sure you are getting a FICO score.

Alternative credit scoring methods will only be allowed by certain lenders if and only if you do not have a traditional credit score associated with your social security number

The traditional FICO score model is said to be outdated and quite complicated for the consumer to understand. The FICO score model ranges from 300 to 850, while the newer VantageScore model ranges from 501 to 990.

The VantageScore range also claims to be more "intuitive" in the sense that it breaks down like an elementary school report card:

• 901-990 equals "A" credit


• 801-900 equals "B" credit


• 701-800 equals "C" credit


• 601-700 equals "D" credit


• 501-600 equals "F" credit

Another thing to keep in mind is that even with traditional FICO and other scoring methods, there are different scoring modules for mortgage, automobile and consumer credit. This certainly adds to the confusion that the general public has about credit scoring. When consumers get their credit scores from online services, the scores are often quite different from what a mortgage lender gets when the pull the credit.

 

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