Lenders use the information in your credit to calculate a score that represents your credit worthiness. FICO scores range from 300 to 850 and the newer Vantage credit score ranges from 501 to a high of 990. If you have your Vantage credit score, you can calculate your FICO by multiplying your score by 0.86. The higher your score the better financing deals you can receive, such as low interest rates other attractive terms. Unfortunately, low scores that indicate a high credit risk and it will be tough to get credit cards and rental applications approved until you are able to bring your score into an acceptable range.

When lenders check your credit worthiness, they usually request your score from all three of the major credit score gurus because they can vary. The average of the three is often used, but that decision is left up to the creditor. With the introduction of Vantage credit scores, which can vary greatly from FICO scores, creditors are left wondering which scoring company is right. Consumers need only remember the numbers are relative – if you have a low score with FICO, your Vantage credit score will still be considered on the “low” end, even if the actual number is higher. There is no need to panic if you see a variance between scores, as lenders and financing companies are aware of the discrepancy. However, if you feel there is something on your report causing to bring down your score, contact us at Vivix Credit Solutions and we will help you boost your score.

Consumers also need to remember that though scores can vary, they are all based off the same information. That is, they draw upon the numbers presented in your credit report and calculate from there. The only difference is in the scoring model that is used. For instance, FICO uses five factors in their scoring: history of payments, how long you have had credit, how much you owe, ways in which credit is used, and recently opened credit. Vantage credit scores use all five of these variables, but they add in a sixth – available credit. Because many debtors have unused cards or revolving cards without balances, this boosts their score. In addition, each variable is weighted differently between the two scoring systems. For instance, FICO puts a 30% importance on amounts owed, whereas Vantage credit score places a 15% importance on balances. This makes a huge difference when scores are calculated.