Credit score scale 101. if you are interested in raising your fico score, or even the vantagescore, here is a look at both of these scores and how they differ from each other.
if you're interesting in knowing the credit score scale, you may find that now there are a couple of different credit scores out there. The fico score is the most common, which comes from Fair Isaac, but there is the VantageScore that was developed to combat the the fico score by the three major credit bureaus.
Reading The Scales
First, you'll find that the scale is a bit different on the VantageScore than it is on the Fico scale. You'll find that the fico score falls between 300 and 850, which is the fico credit scale.
However, the VantageScore is a bit different. It begins at 501 and goes all the way to 990, which gives it a smaller range than the fico score has.
You'll also find that there is a letter grade that goes along with the VantageScore credit score as well. Anything below 600 gets an F rating, between 601 and 700 gets a D, and 701 to 800 gives you a C credit score rating. To get a B rating you have to be between 801 and 900, and above 901 gives you an A rating.
Variations in Your Scores
Another thing you need to know when you look at both the Fico credit score and the Vantage Score one is that your scores can vary, depending on the score that happens to be raised.
You may have a great Fico score, but the VantageScore rating could be a C. This can definitely be frustrating, especially if you want to work on raising fico score or the other score. It's tough to really know which score is the best representation of your credit history.
Why the Difference?
There is a reason that the scale is so different between the two and a reason that your scores can vary. The scores for both are figured in a different way. The Fico score is figured based upon five different variables but the VantageScore actually uses six different variables.
Vantage Score also takes a look at the available credit you have, which is not a main factor in determining your Fico score, although it is part of the five other variables that are used to determine your score.
Although the VantageScore offers another credit score scale that lenders can look at, still today most lenders tend to take a look at the Fico score instead of looking at the VantageScore. Since Fair Isaac, the company behind the Fico score, has been around for more than 50 years, they have great credibility and are seen as the standard credit score.
If you take a look at both scores and you are not sure which one to worry about, usually it's best to work on raising Fico score, since it is probably the one that lenders will be looking at when deciding if they are going to extend to you credit.
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