Question:

Which is the better credit rating scale - FICO vs. Vantage?

Answer:

Only time will tell - the right answer to the debate which credit rating scale is better, Vantage or FICO, is yet to be seen.

The Vantage credit score model is still relatively new. About 90% of the lending institutions still use the old tested and constantly revalidated FICO credit score. And while those remaining 10% show the will of lenders to utilize the new score model, we have yet to see the performance of the loans that have been approved after using the Vantage model.

It is expected that around 2011-2012 the loans approved using the Vantage credit rating model will have passed enough amount of performance duration and that there will be enough number of loans to make their statistical performance meaningful.

Vantage and FICO Credit Rating Scale Comparison

In the table below you can see the difference and the similarities between the two credit rating models and the credit rating criteria they take into account.

FICO credit score Vantage credit score
Payment history 35% 32%
Credit balances 30% 15%
Credit utilization 15% 23%
Types of credit 10% 13%
New credit 10% 10%
Available credit 0% 7%
Credit score range 300-850 501-990
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