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What Credit Card Companies Use Vantagescore

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How To View Your Vantagescore

Which Credit Report Do Credit Card Issuers Use? Credit Card Insider

As with other types of credit scores and reports, you can view your VantageScore without it affecting your credit. This is considered a soft inquiry, compared to a hard inquiry when taking out a loan or applying for a credit card.

To view your VantageScore, you can use free tools like Bank Rate, Credit Karma, or Credit Sesame. Some banking and credit services, including Chase, Capital One, and American Express, will also allow you to pull your VantageScore for free.

Keep in mind that even though all three credit bureaus participated in VantageScores development, your score may still vary from bureau to bureau.

Fico Score Citi Card Benefits

Included with select Citi cards from your Equifax credit report using the FICO® Bankcard Score 8 model and may be different from other credit scores.

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What Determines My Vantagescore

Under the VantageScore model, the main factors for determining your credit score include:

  • Total credit usage, including total balances andremaining available credit
  • Payment history
  • Age of credit history
  • Number of recently opened accounts and creditinquiries

In general, the lower your credit utilizationratio is, the bettermeaning, dont carry much of a balance on your cards everymonth. Lenders also like to see that youre able to handle a mixture ofdifferent debts and that you make timely payments over the long term. And whileapplying for new credit can slightly drop your score temporarily, the number ofrecently opened accounts is the least important factor in determining yourVantageScore.

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Can You Use Both

Lending companies or individuals may compare these two scores to get a full picture of their financial standing. The scores tend to be pretty similar, though big influencers, like your credit depth, can cause more pronounced differences.

VantageScore also covers a smaller time span 14 days in order to calculate your score, which can also cause a discrepancy when compared to FICOs 48-day range. Despite differences, both scores are considered widely reputable.

If you have a preferred score, you may want to look for a lender who specifically uses that score, in order to maximize your approval chances. You can check which score a company or financial institution uses by asking your local agent, or checking their website or application packets.

A Quick Guide Explaining Credit Scores Including How They Work What Range Is Considered Good And Why Theyre Valuable

What is VantageScore and How Does it Work?
  • FICO says good credit scores fall between 670 and 739. Thatâs on a scoring range from 300 to 850.
  • VantageScoreâs good scores are reported to fall between 661 and 780, also on a 300â850 range.

But thereâs a lot more to it than that. So keep reading to take a closer look at credit scores, including how theyâre determined, whoâs looking at them and what you can do to monitor and improve yours.

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What Does My Credit Score Need To Be For A Mortgage

The minimum credit score required to get a mortgage varies by loan type:

Type of Loan
700-740 10-20%

*With a credit score between 500-579 you may still qualify for an FHA loan if you can put at least 10% down.

If youre a first-time home buyer, you may be surprised you could get approved for a mortgage loan with a credit score below 600.

But the score you see in a credit monitoring app, or in your credit card statement, wont be the score your lender sees when it pulls your credit.

The score your lender sees will likely be lower. So if your credit is borderline, youll want to understand how lenders evaluate your credit score and credit history before moving forward with a loan application.

Vantagescore And Fico Scoring Factors

Both FICO Scores and VantageScores weigh the same five general factors.

  • Payment history. Making on-time payments will help your credit score late or missing payments or having debts go to collections will hurt it.
  • Length of credit history. The length of time youve had credit accounts affects your credit score, which is why people who are new to credit generally have lower credit scores than those with decades of experience.
  • Types of accounts. A history of responsibly managing different types of credit accounts, including revolving credit such as credit cards and installment credit such as student loans, can help improve your credit score.
  • Recent activity. If you apply for a lot of new credit in a short time, it can negatively affect your credit score, because it might signal that youre having financial trouble and using credit to get by.
  • However, FICO Scores and VantageScores weigh these factors somewhat differently. VantageScore 4.0 weighs credit usage and available credit most heavily, followed by credit mix, with payment history only moderately influential. For FICO Scores, your payment history is the most important factor, accounting for 35% of your credit score, followed by credit usage, which accounts for 30% of your score.

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    Why Is My Mortgage Credit Score So Much Lower

    There can be a disconnect between the credit scores you obtain for free and the ones your mortgage lender is using.

    Typically banks, credit card companies, and other financial providers will show you a free credit score when you use their service. Also, credit monitoring apps can show free credit scores 24/7.

    But the scores you receive from those third-party providers are meant to be educational. Theyll give you a broad understanding of how good your credit is and can help you track overall trends in your creditworthiness. But they arent always totally accurate.

    Thats partly because free sites and your credit card companies offer a generic credit score covering a range of credit products.

    Mortgage lenders will use a tougher credit scoring model because they need to be extra sure borrowers can pay back large debts.

    For example, auto lenders typically use a credit score that better predicts the likelihood that you would default on an auto loan.

    Mortgage lenders, on the other hand, are required to use a unique version of the FICO score almost exclusively.

    Since mortgage companies loan money on the scale of $100,000 to $1 million, theyre naturally a little stricter when it comes to credit requirements.

    Mortgage lenders will use a tougher credit scoring model because they need to be extra sure borrowers can pay back those large debts.

    So theres a good chance your lenders scoring model will turn up a different lower score than the one you get from a free site.

    About American Express Credit Guide

    BEST Fair Credit Credit Cards / Average Credit Cards in 2021 – FICO Credit Scores 600 – 650 – 700

    What information can I find on MyCredit Guide?

    MyCredit Guide provides your VantageScore® credit score by TransUnion®, refreshed weekly upon login. MyCredit Guide also includes a range of information and tools to help you understand your credit score better and plan for the future. Some of the features include:

    • Score Factors impacting your score
    • Up to 12 months of score history
    • Detailed TransUnion credit report
    • Email alerts about critical changes to your TransUnion credit report information to help you identify potential fraud
    • Score simulator to help you assess the possible impact of financial choices before you make them

    How often is the credit score in MyCredit Guide updated?

    Your VantageScore credit score is updated weekly, upon login.

    What are the “Score Factors” impacting my VantageScore credit score?

    The “Score Factors” impacting your VantageScore credit score tell you what information from your TransUnion credit report is impacting the calculation of your score. These are some key factors that could affect your credit score:

    • Your history of making payments on time
    • How old your credit accounts are
    • How much credit you are using
    • Recent inquiries for credit
    • Recently opened new credit or loan accounts
    • How much credit you have available

    What is the Credit Score Simulator?

    Please note the results of Credit Score Simulator are estimated and dont necessarily show the exact results a given behavior will have on your score.

    How accurate is the Credit Score Simulator?

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    Fico 8 Vs Fico : What Are The Differences

    FICO 9 is similar to FICO 8 but differs when it comes to collections and rent payments. FICO 9 counts medical collections less harshly than other accounts in collections, so a surgery bill in collections will have less of an impact on your than a credit card bill in collections.

    Additionally, FICO 9 ignores accounts in collections that have a zero dollar balance. If you had a credit card account go to collections but later paid it off, FICO 9 will no longer use said collections account against your score. This is different than FICO 8, which factors all collections amounts of $100 or more into your FICO scoreeven if theyre completely paid off.

    Just because collections with a zero balance are ignored by FICO 9 does not mean that lenders will ignore them. Credit bureaus will still show these collections on your full credit report, and lenders will see them when they reviews your full credit history.

    Finally, FICO 9 factors rental history into your credit score. This makes it easier for people with no credit to build a high credit score with their monthly on-time rent payments. Unfortunately, this is dependent on your landlord actually reporting rent payments to credit bureaussomething not yet seen on a large scale.

    How Can I Check My Credit Scores

    You may be able to get a credit score from your credit card company, financial institution or loan statement. You can also use a credit score service or

    For three-bureau VantageScore credit scores, data from Equifax®, Experian®, and TransUnion® are used respectively. Any one-bureau VantageScore uses Equifax data

    The total cost of using a credit card is generally stated as an Annual Percentage Rate, or APR. Credit card companies are required to disclose the APR before

    Did you know you dont have only one credit score? There are many different credit scoring companies and credit scoring models, or differing methods of

    Most companies will work with more than one credit agency which is why CreditLadder American Express use Equifax for credit card applications.

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    What To Expect With The Vantagescore 40 Model

    VantageScore recently announced a new version of its model, VantageScore 4.0. It keeps the 300- to 850-point range, but other changes could affect your credit score based on this model.

    First, a is simple in concept: Its a number based on the information within your credit report that helps lenders determine the likelihood you wont pay back your loans. A higher score means youre more creditworthy and less likely to default or pay late.

    However, creating a scoring model that can make accurate predictions is difficult. Over time, credit scoring models are updated to attempt to increase their accuracy.

    VantageScore Solutions, an independently managed firm created by TransUnion, Experian and Equifax in 2006, just released the fourth version of its credit scoring model VantageScore 4.0.

    What Makes Up Your Vantage Score

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    VantageScore uses the following breakdown:

    • Payment history: 41%
    • Balance: 6%
    • Available credit: 2%

    While the formula appears largely similar, with payment history and credit utilization holding the greatest importance, there is a critical distinction in the way the two scores create these metrics.

    Whereas FICOs numbers generally represent snapshots, VantageScore uses something called trended credit data. This is just a fancy way of saying they consider the trajectory of a borrowers behavior, rather than scoring based only on the current balance or utilization. The reasoning behind this is twofold: consumers should be rewarded for a history of low credit utilization and healthy account balances, and account holders are more likely to make appropriate payments if they have done so in the past.

    A further difference between the two is that a FICO score needs more time to develop, at least initially . A VantageScore, on the other hand, is available to people with a more limited credit history.

    But regardless of which score used, the general path to credit success is the same: make regular, on-time and appropriately-sized payments, and keep accounts open for a long time. The formulas for FICO and VantageScore may seem complicated, but earning a good credit score doesnt have to be.

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    Fico Score Vs Credit Score

    The three national credit reporting agencies Equifax®, ExperianTM and TransUnion® collect information from lenders, banks and other companies and compile that information to formulate your credit score.

    There are lots of ways to calculate credit score, but the most sophisticated, well-known scoring models are the FICO® Score and VantageScore® models. Many lenders look at your FICO® Score, developed by the Fair Isaac Corporation. VantageScore® 3.0 uses a scoring range that matches the FICO® model.

    The following factors are taken into consideration to build your score:

    • Whether you make payments on time
    • How you use your credit
    • Length of your credit history
    • Your new credit accounts
    • Types of credit you use

    Faqs About Vantagescore Vs Fico Scores

    Which is better, FICO or VantageScore?

    Its not a matter of which is better. Different lenders use different credit scores in making credit decisions based on their own rules and their industries. Since the FICO Score 8 is the most commonly used score, this is the most important score to keep an eye on.

    Why are your FICO and VantageScore scores different?

    In addition to the different versions of the FICO Score and VantageScore, and the different weighting they give to certain factors, scores may not be developed using the same information. Not all lenders report to all three consumer credit reporting agencies. In addition, they may provide reports at different times of the month. And credit scores may be generated at different times. All of these factors can affect your credit score.

    Do any lenders use VantageScore?

    Although FICO Scores are used by 90% of lenders, VantageScore is growing in popularity. Creditors are free to use any credit scoring model they want many lenders use multiple credit scores when making their decisions. Lenders who want to take trending data into account or to assess the creditworthiness of a young consumer, for instance, might use VantageScore 4.0.

    Can you check my FICO score for free?

    You can check your FICO Score for free at the Experian website the version youll see is your FICO Score 8. Your bank or credit card issuer may also offer a free credit score. Many third-party websites also provide credit scores either free or for a fee.

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    What Do Credit Monitoring Services Do

    Rather than having to constantly check new reports for new information, you can let that information come to you with credit monitoring, said David Blumberg, the senior director of public relations at TransUnion. He noted that some services also help you protect and limit access to your credit report in case you suspect someone has stolen your identity or is trying to get credit in your name, and dispute items listed on your report that may not be accurate or complete.

    Depending on the service, they may also notify you of changes to your credit score, allowing you to review new activity and determine whether it was fraudulent or includes any errors. A credit monitoring service can look at the following:

    • New account openings, which include credit cards and loans
    • Name or address changes in your credit file
    • , including court dates and bankruptcies
    • Unpaid accounts sent to collections, as well as balances and other payments
    • Hard credit inquiries, including submitted credit card and loan applications

    Different Companies Have Different Models

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    The Federal Trade Commission clearly states that every company can use a unique scoring model. In addition, companies can use different scoring models for different types of credit or loans. And lastly, companies may also use a generic credit score model developed by a scoring company. In other words, companies have the choice to create their own scoring model or use a scoring model created by a third-party like FICO or VantageScore.

    But even though credit scoring models can change from one company to the next, they all must adhere to similar standards. According to the Federal Trade Commission, all credit scoring models must adhere to the guidelines from the Equal Credit Opportunity Act :

    Under the ECOA, a creditors scoring system may not use certain characteristics for example, race, sex, marital status, national origin, or religion as factors. The law allows creditors to use age, but any credit scoring system that includes age must give equal treatment to applicants who are elderly.

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    How Can I Get My Vantagescore And Fico Credit Scores

    You can get your credit scores from a variety of sources, including lenders, credit bureaus, nonprofit credit counselors and personal finance websites like Credit Karma. But watch out some providers charge a fee for access to your scores, whereas others offer them for free.

    Its also a good idea to find out which scores youre getting. Some sources provide actual VantageScore® or FICO® credit scores, while others use scores that are meant for educational purposes only and arent what lenders might use. Educational scores can be similar to your VantageScore® and FICO® credit scores, but not always.

    Re: Credit Cards And Lenders Who Use The Vantage Score

    @Bluerain wrote:

    Sorry to hear about your denial Maybe they pull Vantage if all of the 3 CRA’s are frozen?


    Anyone willing to test this ?

    If all three CRA’s are frozen then no score of any kind could be generated.

    From a BK years ago to:EX – 3/11 pulled by lender- 835, EQ – 2/11-816, TU – 2/11-782″Some people spend an entire lifetime wondering if they’ve made a difference. The Marines don’t have that problem”.

    Sorry to hear about your denial Maybe they pull Vantage if all of the 3 CRA’s are frozen?


    Anyone willing to test this ?

    If all three CRA’s are frozen then no score of any kind could be generated.

    From a BK years ago to:EX – 3/11 pulled by lender- 835, EQ – 2/11-816, TU – 2/11-782″Some people spend an entire lifetime wondering if they’ve made a difference. The Marines don’t have that problem”.

    Doh !

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