The Most Important Types of Credit Scores Explained

April 04, 2025 – If you’re looking to assess your creditworthiness, you’ll want to get a credit report that includes your credit score. But how do you know which credit score will best reflect your financial needs? Read on to find out how credit scores are different, and how to pick the one that will benefit you the most.

The 2 Types of Credit Scores You Need to Know

The two types of credit scores are most calculated by two different institutions – FICO® and VantageScore®.

FICO®

FICO®, which stands for Fair, Isaac and Company, pioneered the use of data analytics to assess creditworthiness in the 1960s. They created the first-ever credit scoring model, analyzing factors like payment history, outstanding debt, and one’s credit history length. This original model paved the way for the FICO® Score to become popularized in the late 1980s.

There have been a few iterations and updates over the years, but generally, the FICO® scoring system has stayed the same. It ranges from 300 to 850. It uses a complex algorithm to assess credit risk based on information from credit reports. Over the years, FICO® has altered the model to cater to the needs of specific industries, like banking corporations, auto companies, and mortgages. A good credit score for FICO® is between 670 and 739.

VantageScore®

VantageScore®, another credit scoring model, was created in 2006. The three major credit bureaus (Equifax, Experian, and TransUnion) worked together to create a new scoring model that would benefit their companies and include more consumers who did not qualify for FICO scores. VantageScore® has grown in popularity over the years, as it weighs factors into its equation that FICO® scores do not, like rent payments, utility payments, and telecommunication payments. These considerations can benefit consumers with limited credit histories.

VantageScore® uses a similar scoring range to FICO® (300-850), but it didn’t start that way. The original version of VantageScore® used a 501-990 scale with letter grades.  Throughout the 2010s, the scale was altered and shifted to the 300-850 scale.  VantageScore® considers 661 to 780 to be a good score and below 600 to be poor but this can vary based on different industry standards.

Things to Note

While both VantageScore® and FICO® have the same numerical range and both measure a credit score, they have some key differences:

Each scoring system treats loan inquiries differently. While FICO® Scores consider a consumer’s need to weigh mortgage, auto and student loan rates, VantageScore®’s do not. FICO® treats all inquiries made in the same 45-day period as one inquiry, thus not impacting your overall score as much. However, VantageScore® considers all inquiries independently within a span of 14 days.

• To receive a FICO® Score, a consumer must have something indicating that they’ve used credit in the past six months. This is often called an undisputed tradeline, as “tradeline” is a credit scoring firm’s term for an open account, such as a credit card or loan. However, a consumer’s “tradeline” can be less than six months old to be scored with VantageScore®, and it doesn’t have to be an active account. If you’ve used credit at any point in your life, you may qualify.

When it’s all said and done, these two credit scores fit the needs of different consumers. To get an accurate view of your creditworthiness, consider using myFICO®, which provides access to your FICO® scores and credit report details. my FICO® can give you a comprehensive view of your credit to help you make the right financial decisions.

Disclaimer: This content is sponsored by MyFICO and is provided for informational purposes only. The information shared here is not intended to serve as financial, legal, or credit-related advice. Readers are encouraged to consult with their personal financial advisors or credit professionals to assess their specific situation. To learn more about MyFICO’s services, including credit scores and monitoring tools, please visit the MyFICO website or reach out to a MyFICO representative.

Contact Information:
Name: Sonakshi Murze
Email: [email protected]
Job Title: Manager