FICO Score vs. Credit Score: Differences You Should Know

Many people use the terms "credit score" and "FICO score" interchangeably, but they aren't exactly the same thing. A FICO score is one type of credit score, though it's the model most lenders rely on when making lending decisions.

Read on to learn the key differences between a FICO score and a credit score, and how to manage both.

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Key Takeaways

• A credit score is the broad category, and a FICO score is the most widely used type. Most lenders use some version of the FICO score when evaluating loan and credit card applications.

• VantageScore is the main alternative to FICO, but it is less commonly used by lenders. Both models use the same underlying credit data but weigh factors differently, which is why your scores may vary between the two.

• Payment history carries the most weight in both models. It accounts for 35% of your FICO score and is the single most influential factor in VantageScore as well.

• A score of 670 or higher is considered good by FICO standards. Scores of 740 and above are rated very good to exceptional and typically unlock the best loan rates and terms.

Summary generated by AI, verified by MoneyLion editors

What Is a FICO Score?

Your FICO score is a three-digit number from 300 to 850 that measures creditworthiness. Your creditworthiness includes your payment history, debt levels and the amount of time you’ve had credit.

• FICO stands for Fair Isaac Corporation, which is a data analytics firm that focuses on providing credit scoring services to lenders who need to vet potential borrowers.

• To date, the FICO score is the most-used credit score model in the United States.

• The goal of your FICO score is to rank consumers based on how likely they are to pay their debts.

• They calculate your risk by measuring your credit mix, credit limit use and the length of your credit history. Then, they compile the results into a three-digit credit score, known as the FICO score.

What Is a Credit Score?

A credit score is a three-digit number that estimates how likely you are to repay borrowed money. While FICO is the most widely used credit scoring model, it isn't the only one.

• Another prominent – though less-used – credit scoring model is VantageScore, which is offered by VantageScore Solutions. Like FICO, but VantageScore measures creditworthiness but uses different parameters and a slightly different scoring model.

• Each of the three national credit bureaus — Experian, Equifax and TransUnion — also offers proprietary credit scores based on its own methodology.

• Unlike FICO and VantageScore, these proprietary scores typically don't factor into a lender's decision about whether to approve a loan.

• Because they're primarily used for educational purposes, they're often referred to as educational credit scores. Accessing them may also require a paid service.

FICO Score vs. Vantage Credit Score: Key Differences

How Each Model Weighs Your Credit Factors

What’s Considered a Good Credit Score?

How Quickly Can Each Model Generate a Score?

Most of the models need at least one to six months’ worth of credit history to generate a score. Here’s a comparison table to learn how quickly each model can generate a score:

Which Credit Score Do Lenders Actually Use?

FICO Score 8 is what most lenders use. Although VantageScore is gaining momentum, it isn’t used by lenders as frequently.

Typically for mortgages, personal loans, car loans and credit scores, lenders will use a version of the FICO score.

What Factors Affect Your Credit Score?

Every credit scoring service has its own way of determining which factors will determine your credit score, as well as how impactful these factors are.

For instance, FICO calculates your score down to exact percentages:

• Payment history: 35%

• Total amount owed: 30%

• Length of credit history: 15%

• New credit: 10%

• Credit mix: 10%

VantageScore breaks down your score similarly, but less precisely:

• Payment history: Extremely influential

• Age and credit mix: Highly influential

• Credit limit use: Highly influential

• Total amount owed: Moderately influential

• Recent inquiries: Less influential

• Available credit: Less influential

What Are Industry-Specific Credit Scores?

FICO stands out from other credit scoring models by offering industry-specific scores. These scores are designed for particular types of lending, such as auto loans, mortgages and credit cards.

• FICO Auto Score 8/9: Used by auto lenders when you want to take out a loan to buy a car.

• FICO Mortgage Scores 2, 4 and 5: Commonly used for mortgage lending decisions.

• FICO Bankcard Score 8/9: Helps credit card issuers assess borrower risk.

Because industry-specific scores can differ from your base FICO score, the score you see online may not be the same score a lender sees. FICO starts with your base score and adjusts the weighting of certain factors based on the type of credit being evaluated.

How To Build and Improve Your Credit Score

There are easy ways to build and improve your credit score. Here are ways to do so:

• Always make your payments on time: Payment history is the biggest factor in determining your credit score.

• Keep old accounts open: Having a lengthy credit history can help your credit score.

• Keep your utilization low: You want your utilization score to be below 30%. Do not use all of your available credit.

• Limit your hard inquiries: You don’t want to have too many inquiries on your credit. This activity will lower your credit score.

• Pull your credit report: It’s always a good idea to check your credit report at least once a year and identify any errors.

Final Take

• Your credit score is the broader category. FICO is a type of credit score that most lenders use.

• Another type of credit score, VantageScore, uses the same data as FICO, but may weigh the metrics differently.

• Payment history holds lots of weight in both models.

• A 670 or higher is considered a good FICO score, while a 740 or more is considered exceptional.

FAQs

Which credit score matters most?

Your FICO Score 8 is the score most lenders will use.

What’s considered a good FICO score?

A score above 670 is considered good. A score of 740 or more is considered exceptional.

Why are my FICO and VantageScore different?

FICO and VantageScore use the same data, but weigh factors differently.

How long does it take to generate a FICO score?

You need at least one account open for at least six months. To generate a FICO score, the lender must report to all three credit bureaus.

Do lenders see the same score I do?

Not always. Lenders may pull an industry-specific credit score, like for a mortgage or car.

Key Terms

• FICO score: A three-digit credit score ranging from 300 to 850, developed by Fair Isaac Corporation. It is the most widely used credit scoring model in the U.S. and factors in payment history, amounts owed, length of credit history, credit mix and new credit.

• VantageScore: A credit scoring model developed by the three major credit bureaus as an alternative to FICO. It uses the same credit data but weights factors differently and can generate a score with as little as one to two months of credit history.

• Credit utilization ratio: The percentage of your available revolving credit currently in use. Both FICO and VantageScore treat high utilization as a negative signal, so keeping it below 30% is generally recommended.

• Hard inquiry: A formal credit check triggered when you apply for new credit. It can temporarily lower your score and is factored into both FICO and VantageScore calculations.

• Industry-specific credit score: A variation of the base FICO score tailored to a specific type of lending, such as auto loans or mortgages. These scores may differ from the general score you see online because they adjust the weighting of certain factors.

Summary generated by AI, verified by MoneyLion editors

Anna Yen contributed to the reporting for this article.