Understanding FICO vs VantageScore: Why Two Numbers Tell One Story
If you’ve ever applied for a loan and gotten two different credit scores on the same day — one from your bank and one from a third-party app — you’re not alone. It happened to Sam and Laila when they applied for their first mortgage in Atlanta. The bank pulled a FICO Score of 693. Their app showed a VantageScore of 729.
“Wait, which one’s real?” Laila asked me, clearly confused.
The answer: both.
But depending on which one the lender uses, the difference can change your loan approval, rate, or even whether you get approved at all.
Let’s break it down like I explained to Sam and Laila — simply, without the fluff.
🧠 What Is FICO?
- FICO has been around since the late 1980s.
- 90%+ of major lenders use it.
- Scores range from 300 to 850.
- It weighs:
- 35% payment history
- 30% credit utilization
- 15% credit age
- 10% new credit
- 10% credit mix
When you apply for a mortgage, car loan, or most credit cards, chances are your FICO score is the one being pulled — not the score you see on free apps.
🆚 What Is VantageScore?
- VantageScore was developed in 2006 by the three credit bureaus: Experian, Equifax, and TransUnion.
- Also ranges from 300 to 850.
- Available more easily to consumers — apps like Credit Karma or NerdWallet use Vantage.
- Puts more weight on total balances, less on recent inquiries, and can score people with shorter credit histories.
That’s why Laila’s score on Credit Karma looked higher. Vantage liked her new paid-off card. FICO hadn’t caught up yet.
⚠️ Why It Matters
Lenders usually don’t tell you which score they’re using — but they do pick one. That difference can cost you real money.
Sam and Laila were quoted a 6.9% mortgage rate based on their FICO 693.
If it had been based on the VantageScore 729, they might’ve landed closer to 5.8% — a difference of $80/month over 30 years.
💡 What You Should Do
- Track Both If You Can
Use your bank or Experian for FICO, and apps like Credit Karma for Vantage. Don’t just look at one. - Focus on What Both Scores Agree On
- Pay on time, always
- Keep balances low
- Avoid opening new accounts too frequently
- Ask Your Lender What Score They Use
When applying for big loans, ask: “Do you use FICO or Vantage?” That knowledge helps you prepare better.
🧾 Real Talk
As someone who’s sat behind that loan officer desk for decades, I can tell you — people miss approvals by 5 points all the time. And they usually didn’t know they were tracking the wrong score.
Don’t be that person.
Know both.
Understand the difference.
Play the game with your eyes open.