Types of Credit Scores
2 Min. Read
Can you have more than one credit score? The answer is yes, and sometimes that creates confusion.
Different credit scoring models and variations in the data reported to the three major credit bureaus can result in multiple credit scores. This also means that it’s common for your score to differ across the reporting agencies. Here, we’ll explain the two types of credit scores, the difference between them, and how to monitor your credit report.
What are the Different Types of Credit Scores?
The most common types of credit scores are:
- FICO Score: Widely used by lenders. Ranges from 300 to 850.
- VantageScore: Another popular scoring model developed by the three major credit bureaus (Equifax, Experian, and TransUnion). Also ranges from 300 to 850.
FICO Score Vs Vantage Score: What’s the Difference?
FICO score and VantageScore have their own methods of reporting. FICO has long been the standard in assessing creditworthiness. VantageScore was developed by the major credit bureaus to predict your credit, and it can be beneficial to new borrowers as it typically takes less time to establish than a FICO score.
Is 600 a good credit score? To help you understand how strong your credit might be, it helps to know how credit scores are interpreted. FICO credit scores are categorized into the following ranges:
- Fair or Poor: Below 670 on the FICO scale
- Good: 670 to 739 on the FICO scale
- Very Good: 740 to 799 on the FICO scale
- Excellent: 800 and above on the FICO scale
Up to 90% of lenders use FICO scores in their decision-making criteria, so it’s a good idea to refer to this score when monitoring your credit. Other scores can differ from FICO by up to 100 points, which may be misleading.
When monitoring your credit, it’s important to understand which score your potential lenders will use to assess your credit and approve your loan.
Credit Resources
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Jennifer Tucker
Jennifer Tucker is a freelance writer for Marine Credit Union. She has held roles in banking, marketing, and public relations during her 15+ year career. She holds a bachelor’s degree in communication with a minor in journalism from the University of Portland and a master’s degree in communication from Marquette University.
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