VantageScore

VantageScore is a credit scoring model developed by VantageScore Solutions, LLC, a joint venture of Equifax, Experian, and TransUnion. It is designed to estimate the likelihood that a consumer will repay credit obligations within a two-year period, using data pulled from the three major credit bureaus. Introduced in 2006 as an alternative to the FICO score, it aims to provide a consistent score across all three bureaus by aggregating their data into a single metric.

The score ranges from 300 to 850, with higher values indicating lower credit risk. Lenders set their own minimum score thresholds to approve credit and pricing decisions; there is no universal minimum.

VantageScore has undergone multiple revisions. The current widely used version is VantageScore 4.0, which uses a patented algorithm that incorporates trended data and machine learning to capture changes in consumer credit behavior over time. Earlier versions, such as 2.0 and 3.0, also rely on data from all three bureaus and consider factors like payment history, credit utilization, age of accounts, and credit mix.

Because it is based on bureau data from all three agencies, VantageScore can differ from FICO scores for the same person. Lenders may use VantageScore alongside other scores; credit scores can vary by model, version, and data timing. Consumers can influence scores by paying bills on time, maintaining low credit utilization, and avoiding excessive new credit inquiries.

VantageScore’s thresholds and weighting are proprietary, and scoring models can be updated; individuals may see score changes when data on their credit report changes or when the scoring model version is updated. It is widely recognized but not universally used, and remains one of several major credit scoring models used by lenders.