What is the difference between fico score and transunion

To generate a score for you, FICO requires that you have at least one account opened for six months or more and at least one account reported to the credit bureaus within the previous six months. VantageScore, on the other hand, might be able to provide more people with credit scores by using just one month of history and one account reported within the previous 24 months.

According to VantageScore, more than 2, financial institutions use its credit scores. The scores are based on the following factors:. Access to either of these scores may cost you. Your credit reports are records of your past dealings with creditors and other credit history. They include information such as your name, addresses, employers, the history and status of various credit accounts, and inquiries from companies checking your reports.

Credit Karma shows you the different credit factors that can affect your scores and where you can work to try to improve your credit.

And if you opt for credit monitoring , Credit Karma will also send you alerts when there are important changes to your credit reports, which may help you spot potential errors or fraud. Using a service like this can give you tools to help you improve your credit. No matter what scores you look at, most do a good job of giving you an idea of the state of your credit. Staying on top of your credit scores can help you determine where you stand and steps you can take to improve your credit health.

If you check your credit scores regularly, you can keep track of how your scores are trending, work on building your credit history and address potential issues as they arise. A credit score you find online may differ from the score a lender uses for several reasons. First, three different credit bureaus Equifax, TransUnion and Experian maintain your credit reports. In the U. And while there are many similarities in how FICO Scores and VantageScore credit scores work, there are some noteworthy differences too.

Results may vary. See site for more details. A credit score is a snapshot evaluation of your credit risk at a given point in time. It can help lenders judge whether loaning you money is a wise investment. FICO Scores range from to At first, VantageScore credit scores featured a different numerical scale to However, VantageScore 3.

Higher scores make it easier to qualify for financing and to receive competitive financing offers from lenders. In fact, the lifetime value of a good credit score could save you tens or even hundreds of thousands of dollars. Credit score creators design their scoring models to do a specific job. They can predict the likelihood that a consumer will pay any credit obligation 90 days late or worse within the two years. A lower credit score signals the opposite.

Your credit scores, regardless of the brand, are influenced by similar factors. These details include information like your payment history, credit utilization ratio , the age of your accounts, mixture of account types and more. All of the factors which cause your credit score to move up or down are found on your credit reports. Information outside of your credit reports has no direct impact on your scores. Before a lender can use a credit score to evaluate applicants, the scoring model must pass a few tests.

Those terms mean that credit scores in the U. And they have to work aka demonstrably and statistically sound. A credit score is supposed to predict the likelihood that someone will pay a bill 90 or more days late in the upcoming 24 months. You can think of them like the Pepsi and Coca Cola of the financial world. Below are a few key differences between the two credit score brands. Each one creates and sells credit scores to lenders and other businesses in the financial industry.

FICO is a publicly traded company based in California. The analytics company was founded in by an engineer, Bill Fair, and a mathematician, Earl Isaac. Not everyone is eligible for a credit score. And at least one tradeline on your report must show some activity in the last six months. Qualifying for a VantageScore is a little easier. Your credit report simply needs at least one tradeline present, regardless of the age of that account.

A service like Experian Boost may help ensure you have every opportunity to build a credit profile. We noticed that you started signing up but did not complete your order.

Do you wish to continue? Credit Advice Credit Score Basics. What are credit scores? What is the credit rating scale? Should I be worried if my scores are different? Disclaimer: The information posted to this blog was accurate at the time it was initially published. We do not guarantee the accuracy or completeness of the information provided. The information contained in the TransUnion blog is provided for educational purposes only and does not constitute legal or financial advice.

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