FICO Credit Scores Vs FAKO Credit Scores
The very first observation of the difference between either one of such scoring models is to state the value of both. What we understand is that FICO Scores are used in over 90 % of lending decisions. While on the other hand FAKO Scores are most commonly used for “educational purposes” and not lending decisions.
The three major Credit Reporting Agencies (CRAs) Experian, TransUnion and Equifax must pay Fair Isaac to license their proprietary FICO scoring algorithm. And so the 3 CRAs banded together to create the Vantage credit rating for the own use of theirs and specifically intended to save themselves money. However FICO was and still will be the gold standard for lending/credit decisions.
What becomes even more interesting would be that the CRAs also promote & use their very own unique Brand of scores also. TransUnion has got the Trans Risk Score with a score range of 300 – 850. Experian created and requires the Experian Plus Score that ranges from 330 – 830 and after that there is The Equifax bad credit loans guaranteed approval $1 000 (please click the up coming post) Score that ranges from 280 – 850 based on the Consumer Financial Protection Bureau (CFPB).
If the Vantage rating is an example of the differences between what values are utilized to build up these differing scores in that case , we can imagine that the single Brands of scores developed by every one of the three Bureaus will likely then be organized in a same or similar way. Making the subsequent comparison of the Vantage for the FICO scoring models and also the values used a terrific point to make right here.
The first VantageScore ranges from 501 to 990 and in addition provides consumers a letter grade from A to F. The latest model, Vantage Score 3.0, works on a scoring range from 300 to 850, the same as a FICO score uses.
Vantage Score 3.0 criteria, ranks FICO Score requirements, ranks
Payment history (thirty two %), Payment history (35%)
Credit utilization (twenty three %), Amounts owed (30%)