How FICO and VantageScore weigh factors in credit history differently

How VantageScore and FICO’s algorithms calculate credit scores differently

VantageScore and FICO weigh various factors that determine your credit score differently. For instance, while your payment history makes up 40% of your VantageScore, it only makes up 35% of your FICO score.

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.

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 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.

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.

Some argue that credit reporting promotes economic inequality in the US

Although today's credit scoring system is much more objective than, say, the credit assessment system of the 1700s, some argue there's still room for improvement, with critics saying the current system is still discriminatory. For example, while mortgage payments have long been automatically reported to credit bureaus, rent payments (the primary housing expense for most lower-income Americans) historically haven't been reported unless a payment was missed.

Consequences of a bad credit score

A bad credit score can lead to spending roughly $100K more on a typical mortgage. Poor scores also prevent you from getting certain jobs, apartments, and more, hindering you from building wealth in the long term.

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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.

How credit unions compare to traditional banks

Although credit unions offer great perks like higher-than-average interest rates, they aren’t the right fit for every customer. This handy guide helps would-be bankers identify their top financial priorities. To see how credit unions stack up against traditional banks across key areas like branch locations, customer service, and digital technology, click here.

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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.

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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.

Payday loans typically have higher interest rates than cash advances

Cash advances and payday loans are both short-term loans that allow borrowers to access cash quickly. Payday loans are much shorter-term, often due in two weeks or by the borrower's next paycheck, and have much higher interest rates.

Do resume gaps still matter?

Although the modern approach to work-life balance might make resume gaps seem less taboo than they were in decades past, the truth is more nuanced. A recent study explored how a major gap in your resume may affect your career at large. It also discovered how explaining the gap in an application or resume can mitigate any damage. Click here to learn more.

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

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.

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Pensions often must ‘vest’ for an employee to be eligible for them

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Regular coupon users pay less attention to the actual price of what they’re buying

The psychology of coupon users can feel counterintuitive: Research suggests regular coupon users actually prioritize coupon availability over actual price comparisons.

Why Google Search's ranking system combines filters, signals, and machine learning layers

Rather than static rankings, dynamic tools continually shift search results in real time. These include Twiddlers, which adjust ranking positions based on document traits and search context, and FreshnessNode, which reshuffles top results to prioritize timely informational content.

Flossing may lower the risk of strokes

Flossing is known to advance teeth and gum health, but it also betters one’s brain and heart health. According to data from the American Heart Association, taking care of your teeth has cardiovascular benefits. A recent study showed that regular flossers experienced lower risks of strokes, highlighting a link between oral bacteria and stroke risk.

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