What is VantageScore?

Understanding VantageScore: An Alternative to FICO

While FICO is the better-known source for credit scores, many consumers are getting scores from VantageScore. According to US News, VantageScore was designed to provide a consistent credit scoring model that could be used by Equifax, Experian and TransUnion, the three national credit reporting companies.

Developed in 2006 as an alternative to the more established FICO scores, they also aimed to expand the number of people who receive credit scores. John Ulzheimer, a credit expert who worked for Equifax and FICO, credits VantageScore for creating the free credit score market.

The VantageScore model uses data such as rent, utility, and telecom billing information, public records, and older credit file information to develop a profile of consumers.

Financial institutions often used the score for issuing lending products such as credit cards and auto loans, whereas nonfinancial institutions, such as consumer websites, and utility companies, use it for credit screening checks.

What impacts a VantageScore credit score?

  • Not all factors have the same impact on a VantageScore credit score, according to VantageScore’s website.
  • These are the categories that impact a VantageScore credit score:
  • Extremely Influential
    Payment history: All bills should be paid on time.
  • Highly Influential
    Type and duration of credit: It’s helpful to maintain a mix of accounts (credit cards, auto mortgage) over time to improve a score.
    Percentage of credit limit used: Keeping revolving balances under 30% of credit limits.
  • Moderately Influential
    Total balances/debt: Reducing the amount of debt owed.
  • Less Influential
    Recent credit behavior and inquiries: A client should not open too many new accounts too quickly.
    Available credit: A client should only open the amount of credit needed.

There are a lot of things that don’t factor into the VantageScore model, or any other credit scoring model: race, color, religion, nationality, gender, marital status, age, salary, occupation, title, employer, employment history, address or total assets.

A VantageScore can help understand what lenders consider when making credit decisions, and is available on free websites and through many lenders.


VantageScore offers a fresh perspective on credit scoring by incorporating diverse data and providing insights into consumer financial behavior. As it becomes more commonly used alongside FICO, it’s crucial for individuals to familiarize themselves with its structure and implications. Remember, regardless of the scoring model, responsible financial habits remain paramount.

Find more resources on our blog:
Plan Your Business
How to Start a Credit Repair Business Checklist
5 Tips for Running a Successful Credit Repair Business

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