FICO Credit Scores Vs FAKO Credit Scores
The initial observation of the big difference between either one of these scoring models is to state the valuation of each one. What we realize is that FICO Scores are used in over 90 % of lending decisions. While on the other hand FAKO Scores are normally used for "educational purposes" and not lending decisions.
The 3 major Credit Reporting Agencies (CRAs) Experian, TransUnion and Equifax must pay Fair Isaac to license the proprietary FICO of theirs scoring algorithm. Therefore the three CRAs banded together to develop the Vantage best credit repair service (mouse click the up coming post) rating for the own use of theirs and specifically intended to save themselves cash. However FICO was and still is the gold standard for lending/credit decisions.
What becomes a lot more interesting is the fact that the CRAs also promote & use the very own individual Brand of theirs of scores as well. TransUnion has got the Trans Risk Score with a score range of 300 - 850. Experian created as well as requires the Experian Plus Score that ranges from 330 - 830 after which there's The Equifax Credit Score that ranges from 280 - 850 in accordance with the Consumer Financial Protection Bureau (CFPB).
In case the Vantage score is a good example of the differences between what values are used to cultivate these differing scores in that case , we are able to think that the separate Brands of scores created by each of the 3 Bureaus will then be structured in a similar or same way. Which makes the following comparison of the Vantage to the FICO scoring models as well as the values used an important thing to make here.
The original VantageScore ranges from 501 to 990 as well as gives customers a letter grade from A to F. The latest model, Vantage Score 3.0, uses a scoring range from 300 to 850, just like a FICO score uses.
Vantage Score 3.0 criteria, ranks FICO Score requirements, ranks
Payment history (32 %), Payment history (35%)
Credit utilization (23 %), Amounts owed (30%)
The 3 major Credit Reporting Agencies (CRAs) Experian, TransUnion and Equifax must pay Fair Isaac to license the proprietary FICO of theirs scoring algorithm. Therefore the three CRAs banded together to develop the Vantage best credit repair service (mouse click the up coming post) rating for the own use of theirs and specifically intended to save themselves cash. However FICO was and still is the gold standard for lending/credit decisions.
What becomes a lot more interesting is the fact that the CRAs also promote & use the very own individual Brand of theirs of scores as well. TransUnion has got the Trans Risk Score with a score range of 300 - 850. Experian created as well as requires the Experian Plus Score that ranges from 330 - 830 after which there's The Equifax Credit Score that ranges from 280 - 850 in accordance with the Consumer Financial Protection Bureau (CFPB).
In case the Vantage score is a good example of the differences between what values are used to cultivate these differing scores in that case , we are able to think that the separate Brands of scores created by each of the 3 Bureaus will then be structured in a similar or same way. Which makes the following comparison of the Vantage to the FICO scoring models as well as the values used an important thing to make here.
The original VantageScore ranges from 501 to 990 as well as gives customers a letter grade from A to F. The latest model, Vantage Score 3.0, uses a scoring range from 300 to 850, just like a FICO score uses.
Vantage Score 3.0 criteria, ranks FICO Score requirements, ranks
Payment history (32 %), Payment history (35%)
Credit utilization (23 %), Amounts owed (30%)