How VantageScore and FICO’s algorithms calculate credit scores differently

How FICO and VantageScore weigh factors in credit history differently

VantageScores are sometimes lower than FICO scores because the algorithms that calculate the two scores weigh the factors that influence them differently. For instance, VantageScores typically weigh payment history more heavily than FICO scores.

See how a good VantageScore and a good FICO score can differ

While VantageScores and FICO scores both offer credit scores between 300 and 850 and consider the same core factors, they weigh those factors differently, and specific numbers can have different meanings depending on the type of score.

What is VantageScore?

The three major credit bureaus introduced the VantageScore credit score in 2006 as a competitor to FICO. It’s calculated slightly differently from a FICO score, though just like the FICO score, it’s widely used by lenders.

Five primary factors determine your credit score

Your credit history is used to calculate your credit score. It includes information such as how often you miss payments (on credit cards, for instance), the types of financial accounts you hold, how long you’ve held those accounts, and more.

The Fair, Isaac and Company (FICO) was founded in 1956

When they created FICO, William Fair, an engineer, and his cofounder, Earl Isaac, reasoned that financial data could help a wide variety of companies improve business decisions. FICO created the first credit scoring system to help lenders be more objective.

What your credit score actually means

The modern iteration of credit scores hasn’t been around for that long—it was invented just a few decades ago, in 1989. This video outlines how the credit scoring system has evolved and become more complex since then. Plus, it explains what your credit score actually means, what factors impact your score, and more. Watch it here.

How credit scoring works outside the US

If you move outside the US, you won’t get to take your credit score with you. Credit scoring systems work differently in other countries. In the UK, for instance, being registered to vote improves your credit score.

Credit card issuers determine your credit limit using your payment history, income, and more

Some credit card issuers also take your other payment obligations into account when determining your credit limit, such as the cost of your rent or alimony.

What are business credit scores?

Businesses have credit scores the same way individuals do—with a few key differences. For one thing, business credit scores range from 0 to 100 instead of 300 to 850, and are based on factors such as bankruptcy and bill-paying habits.

How the credit scoring system could change

Factoring rental payments into credit scores is just one proposed change some have suggested making to today’s credit scoring system to cater the system to renters as well as homeowners.

Privacy concerns in the credit scoring system

Because credit scores use a lot of personal information (such as whether or not someone makes credit card payments on time), some worry their privacy is being compromised in the data collection process.

Why consumers could soon see the impact of buy now, pay later loans on their FICO credit scores

FICO rolled out its first-ever BNPL-specific credit scoring models in June 2025. While missed installments can now negatively impact a credit score, there's also the potential for on-time BNPL installment payments to help boost scores.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Roughly 39% of Visa's revenue comes from data processing fees.

Visa gets roughly 0.13% to 0.14% of each transaction. About 32% of its revenue stems from the money banks pay Visa to use its services, and roughly 26% of its revenue comes from international transaction fees.

Learn how the algorithms behind Tinger, Bumble, Hinge, and other dating apps work

Formerly based on the Elo rating system, which ranks chess players, the Tinder algorithm is built on user data, with more time spent on the app providing more data on user preferences from which to customize potential matches. OkCupid's match percentage algorithm relies on overlaps in users' search preferences and responses to a subset of over 4,000 questions.

Find out how venture capitalists make decisions

More than 30% of venture capital deals come from leads courtesy of a VC’s former colleagues or professional network. You can learn more about how venture capitalists decide which companies to invest in by reading this article.

Charge cards are different from credit cards

Unlike credit cards, charge cards often don’t have a preset credit limit, but cardholders need to pay off the entire balance every month.

529 plans can affect college financial aid

Income affects FAFSA financial aid determinations. FAFSA also takes 529 college savings plans into account. The percentage of savings it uses in its calculations depends on who owns the account (parent, student, or someone else). Other schools use a program called CSS to determine financial aid, and those determinations vary.

Are credit unions living up to DEI promises?

Credit union insiders often say their institutions better serve minority bankers through a combination of a not-for-profit ethos and community focus. However, a recent probe found that the largest US credit union rejected more than half of all Black applicants for conventional mortgages. To dive deep into Navy Federal Credit Union’s mortgage practices, read this journalistic investigation.

Private credit and private equity are both alternative assets

Like private equity fund managers, private credit managers typically raise funds directly from investors, lending to corporations. The borrowers can benefit from the lack of middlemen and resulting efficiency, and the lenders often yield comparatively higher returns.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Why some say the S&P 500 has effectively become an AI fund

The S&P 500 is a market-cap-weighted index, which means companies with larger market capitalizations have a larger impact on the index's overall performance. Many of the top companies in the index are currently tech companies—including Nvidia, Microsoft, Alphabet, and Apple—that all have large investments in artificial intelligence. As a result, some analysts are concerned that the index is overly exposed to risky AI investments.

Polygenic scores aim to predict traits based on the contributions of many genes

These novel tests for multifactorial conditions evaluate the probability of traits like elevated blood pressure, diabetes, or high cholesterol based on what researchers currently know about different gene variants and their links to various traits. The tests are predictive, not definitive, partly because environmental factors influence the expression of genes. What's more, knowledge about cumulative effects from individual genes continues to evolve. The American Society for Reproductive Medicine states that these tests are too unreliable and nascent for clinical use.

Hackers once used 'Fortnite' to clean money from stolen credit cards

Hackers using stolen credit cards would create "Fortnite" accounts and purchase V-bucks, the in-game currency. The hackers would then sell the entire "Fortnite" account on sites like eBay. For instance, an account with $100 worth of stolen V-bucks might sell $25 on eBay.

Compare different mutual funds

Figure out what type of mutual fund is right for you with this tool. Use the search bar to find info on any mutual fund. If you’re deciding between multiple funds, you can select them all to get a comparative analysis on rates, fees, and returns.

Student loan debt isn’t evenly distributed across age groups

Millennials and Gen X borrowers account for more than 70% of outstanding federal student debt ($1.1T). The discrepancy is driven by several factors, including a drop in college enrollment by younger Americans and older cohorts having more years to pay off balances.

The payments tool Zelle was created by big banks to compete with apps like Venmo

Zelle is an alternative to Venmo, where people can pay each other back for expenses like apartment utilities or dinner. But its origin story has more to do with big finance than small transactions.

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

How fusion—which releases energy when two lighter atoms combine to form a heavier atom—differs from fission

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

English mathematician Ada Lovelace wrote the first computer algorithm a century before computers existed and hypothesized that computing devices would one day be able to compose music—foreseeing the generative AI systems of today.

Browse a detailed visual analysis of over 200,000 similes—comparisons that often use 'like' or 'as'—from popular fiction to see how frequently writers the same idiomatic expressions.

Alzheimer's can lead to brain shrinkage, with an average of around 2% of volume reduction per year

The rivalry between Alexander Hamilton and Thomas Jefferson centered on federalism—the question of how much power the federal government should hold relative to the states.

As of 2025, the most cited papers in science include a review of graphene, methods to improve image recognition, streamlining electron density calculations, and optimizing protein studies.

After 25 people used virtual reality headsets to practice flying with virtual wings—flapping their arms—their visual cortex responded to the wings almost as if they were real arms, treating them as body parts.

In 2026, Finland was named the world's happiest country for the ninth consecutive year based on its wealth, social safety network, and high life expectancy, among other factors.

Track the location of the Voyager probes, currently between 13 and 15 billion miles away from Earth.

Studies suggest when you sleep is as important as how much you get, and syncing with your circadian rhythms may lead to less fatigue and improved long-term health outcomes

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Scientists testing how climate change affects plants found, in a years-long simulation study, that poison ivy grew 70% faster with the resulting extra carbon dioxide.

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

Ebola is a filovirus, meaning it resembles a thread under a microscope, though it sometimes twists and can resemble a bowl of spaghetti.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

Hurricanes, which rely on air consistently spinning in the same direction, cannot cross the equator because air curves in opposite directions north and south of it.