Is The Score You Received The FICO Score?

Recently, more consumers are confused with the score they received when ordered online, especially on annualcreditreport.com. When consumers check their annual free credit report, many also order a credit score sine they believe it's a good idea to invest $5.00 to check their Fico score. However, in many cases, what they receive is not a Fico score but a VantageScore, developed jointly by three credit bureaus.

In March 2006, the nation's three leading consumer credit reporting companies - Equifax, Experian and TransUnion - jointly launched their own proprietary credit scoring system, called VantageScore.

When you order your credit score from Experian or TransUnion, you receive a VantageScore instead of a FICO scores, which is used by most lenders.

Different Scores, Different Score Ranges

Fico scores and VantageScores two have different scales. There's a big difference in interepreting the two scores.

Fico scores range from 300 to 850, with scores above 720 being considere excellent.

On the other hand, VantageScores range from 501 to 990, and approximate the letter-grade system used in most schools. That means a score of 901 to 990 is an A, while a score of 801 to 900 is a B, 701 to 800 is a C, 601 to 700 is a D and 501 to 600 is an F.

Improving Credit Score

Checking Credit Score

Latest News

4/23/08

A credit inquiry typically lowers your score by five points or less. Credit inquiries reduce credit scores because lenders believe that multiple inquiries are associated with high risk of default.

1/20/08

With the introduction of the VantageScore in addition to the FICO score, consumers are confused about the credit score range and about the credit scoring in general. Here are the main differences between the two credit scoring systems.

11/28/07

Zopa Ltd., a United Kingdom player in the person-to-person online lending market, is starting operations in the U.S. where it will join a handful of other companies, including Prosper Marketplace Inc.'s Prosper.com, that have popularized the market in recent years.

6/25/07

Equifax Inc. emphasized that VantageScore(sm) and the Equifax Risk Score 3.0 are not - and never have been - impacted by the authorized user manipulation. Authorized user information is excluded in calculating both VantageScore and the Equifax Risk Score 3.0.

6/18/07

Although Fair Isaac Corp., the Minneapolis company that created the FICO score doesn't give out many details about the changes, the company spokesman said there will be more segments in their scoring model.

6/11/07

As credit scores take more important role in many parts of our lives, more ideas are popping up everyday to boost our credit scores. Recently, some borrowers with low credit scores are turning to a fast-growing business on the Internet: “Credit Renting.”

6/8/07

The Supreme Court ruled in favor of two large insurers, limiting the circumstances under which companies must tell customers their credit ratings are affecting the amount they pay.

More News

Home | Basics | FICO Score | Kay Factors | Improving Credit Score