If you’ve ever checked your credit score, you’ve perhaps seen two different numbers and wondered why they’re different. That’s because you likely saw both a FICO® score and a VantageScore®, the two main credit scoring models that lenders use to evaluate your creditworthiness.
With recent policy changes allowing mortgage lenders to use VantageScore 4.0 for conventional loans, millions more Americans may soon have access to homeownership than ever before. Here’s the difference between VantageScore and FICO, so you know how each score is calculated and why it matters when you apply for a home loan.
Key Takeaways:
- Mortgage lenders have access to two credit scoring models – FICO and VantageScore – when evaluating borrowers’ creditworthiness.
- VantageScore 4.0 is now approved for conventional loans backed by Fannie Mae and Freddie Mac, breaking FICO’s decades-long monopoly in mortgage lending.
- VantageScore can generate a score with just 1 month of credit history versus FICO’s 6-month requirement, and each model weighs factors differently.
- This policy shift could enable up to 5 million more borrowers to qualify for a home loan.
What Is A VantageScore?
VantageScore is the new kid on the block in the world of credit scoring. Developed in 2006 by the three major credit bureaus – Experian, Equifax and TransUnion – VantageScore emerged as a competitor to the market-dominating Fair Isaac Corp. (FICO) credit model.
VantageScore 4.0, the latest version of the product, uses the same 300 – 850 scoring range as FICO, making it easier for lenders to evaluate credit scores from both systems.
Unlike FICO, which creates separate scores for each credit bureau, VantageScore uses a single tri-merge model that works with credit reports from any of the three major agencies. This creates more consistency across the different credit reports.
VantageScore 4.0 can generate a credit score with as little as 1 month of credit history, compared to FICO’s 6-month requirement. It also considers alternative data sources like rent, utility and telecoms payments when they’re reported to credit bureaus, helping those with thin credit files build a credit score without having to take out loans.
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How FICO And VantageScore Calculate Your Score Differently
Both models evaluate similar factors to generate a credit score, but they weigh them differently. Let’s take a closer look.
FICO Score 8 (Most Widely Used):
- Payment history: 35%
- Credit utilization: 30%
- Length of credit history: 15%
- Credit mix: 10%
- Recent credit: 10%
VantageScore 4.0:
- Payment history: 41%
- Depth of credit (credit age and mix): 20%
- Credit utilization: 20%
- Recent credit: 11%
- Balances: 6%
- Available credit: 2%
The different weightings mean your scores may vary between the two models. VantageScore, for instance, puts more emphasis on payment history and less on credit utilization. This could benefit mortgage shoppers who consistently pay their bills on time but carry high account balances.
While FICO 8 is still the credit scoring model mortgage lenders use the most, FICO’s latest model – FICO 10 T – is showing strong results in its Early Adopter Program for non-GSE loans launched in 2023, the company said. (GSEs are government-sponsored enterprises such as Fannie Mae and Freddie Mac.) As of February 2025, lenders reported that 51% of mortgages had higher FICO 10 T scores compared to classic FICO scores and that 1.7% more mortgages scored 740 or higher with the newer model.
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Credit Score Ranges: FICO Vs. VantageScore
Here’s a breakdown of how each model categorizes credit score ranges, from bottom to top. You’ll notice that FICO breaks credit scores into five tiers, whereas VantageScore 4.0 categorizes scores into just four tiers.
| FICO 8 | VantageScore 4.0 |
|---|---|
| 300 – 579 – Poor | 300 – 600 – Subprime |
| 580 – 669 – Fair | 601 – 660 – Near Prime |
| 670 – 739 – Good | 661 – 780 – Prime |
| 740 – 799 – Very Good | 781 – 850 – Superprime |
| 800 – 850 – Exceptional |
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Key Differences That Impact Your Score
Time To Establish Credit
VantageScore can generate a score after just a month of an opened credit account. FICO, on the other hand, requires 6 months of credit history. This makes VantageScore more accessible for young adults, immigrants and others building credit from scratch.
Collections Treatment
VantageScore ignores paid collection accounts completely, while FICO 8 still considers them, though newer models also ignore paid collections. If you’ve paid off these old debts, this could help rather than penalize you.
Rate-Shopping Windows
When you’re shopping for a mortgage, both models group multiple credit inquiries for a mortgage within a certain time frame as a single hard inquiry without hurting your credit. However, VantageScore’s window is only 14 days – much shorter than FICO’s 45-day shopping window. All mortgage loan inquiries done within a 14-to-45-day period count as a single hard inquiry, according to the Consumer Financial Protection Bureau (CFPB).
Late Payment Types
VantageScore weighs late mortgage payments more heavily than other types of late bills, though all can hurt your score.
Conventional Lenders Now Accepting VantageScore 4.0
In July 2025, the Federal Housing Finance Agency (FHFA) announced that lenders can now use VantageScore 4.0 to originate mortgages sold to Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that back most conventional loans in the United States.
The new policy ended FICO’s decades-long monopoly on the credit scoring market for conventional loans. Lenders can now choose between the two models for conventional loans they sell to the GSEs.
How Does VantageScore 4.0 Affect Home Buyers?
According to VantageScore’s estimates, allowing this secondary credit scoring model means that up to 5 million additional borrowers might qualify for conventional loans backed by Fannie Mae and Freddie Mac, potentially allowing for as much as $1 trillion in new mortgage loans. VantageScore declared the move a huge win for home buyers who might otherwise be shut out of the mortgage approval process.
“If you’re a first-time home buyer who hasn’t quite built that credit history and credit score up because you haven’t been making mortgage payments, you might be affected,” says Jonathan Ernest, assistant professor of economics at Case Western Reserve University’s Weatherhead School of Management. “Now, a few more people who are on the margin move from being denied that loan at a favorable rate to receiving the loan.”
He notes that it won’t impact borrowers who’d qualify for a home loan through the traditional scoring system. However, allowing the use of VantageScore 4.0 could open up the market to millions of other potential borrowers who have demonstrated a responsible payment history through on-time rent and utility payments, which aren’t typically considered in FICO scoring models.
FICO’s leaders, meanwhile, insist that VantageScore isn’t all it’s cracked up to be in predicting borrower risk. In a recent blog post, Jim Wehmann, former president of scores with FICO, touted the scoring model’s latest FICO Score 10 T, asserting it “far exceeds Classic FICO in detecting loan losses.”
“In fact, FICO Score 10 T’s improvement over Classic FICO was shown to be five times better than VantageScore 4.0’s improvement,” Wehmann wrote, “with FICO Score 10 T detecting 18% more defaulters in the critical score decile commonly used for mortgage originations versus just 3.4% for VantageScore 4.0.”
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Market Usage: VantageScore Vs. FICO
By its own estimates, VantageScore usage shot up by 55% in 2024 to 42 billion credit scores. More than 3,700 institutions, including top 10 U.S. banks, use VantageScore for various lending products.
However, FICO still dominates within mortgage lending. Most mortgage lenders continue to use FICO scores because the GSEs have historically required them.
Now that VantageScore 4.0 is an option, this could change FICO’s market dominance. That’s because VantageScore 4.0’s model scores 33 million more people (including an estimated 5 million more creditworthy mortgage borrowers) than traditional models, the company says.
The mortgage industry is optimistic about the new policy, but cautiously, noting that FHFA needs to address serious implementation questions before widespread adoption of VantageScore 4.0 and newer FICO models.
“Credit score standards are embedded throughout the mortgage ecosystem and the incorporation of [VantageScore] into that ecosystem will require the GSEs to provide lenders, investors, and other market participants critical implementation guidance,” according to a joint statement from the Mortgage Bankers Association, American Bankers Association, Housing Policy Council and Structured Finance Association that was released after FHFA’s announcement.
“Our organizations stand ready to partner with the GSEs to resolve these questions quickly. Strong and fast collaboration between GSEs and industry stakeholders will be necessary to realize the vision of true competition for credit scores and lower costs for consumers.”
Which Score Should You Monitor?
Both scores matter, but which one you should focus on really depends on your goals. Here are some guidelines on which credit score you should watch.
Monitor FICO If:
- You’re applying for a mortgage with a traditional lender.
- You want the score most lenders currently use.
- You’re applying for credit cards or auto loans.
Monitor VantageScore If:
- You’re a first-time home buyer with limited credit history.
- You’ve paid off collections and want them ignored.
- You regularly pay rent and utilities that could boost your score.
How To Check Your Credit Scores
You have a few options for keeping tabs on your credit scores. Start with your current bank, credit union or credit card company to see if they offer free access to either your FICO or VantageScore (or both).
Otherwise, visit VantageScore’s website for a list of lenders and institutions that offer access. Several personal-finance sites do so for free when you sign up for an account, according to VantageScore.
To see your FICO score, sign up for a free account on MyFICO.com. However, if you want to see the scores that mortgage lenders use, that access requires a paid monthly account starting at $29.95 (as of December 2025).
Don’t forget to check your credit report at no cost at AnnualCreditReport.com. Make sure there are no errors or other issues on your credit report, and if there are, contact creditors immediately to address them. Your lender can help you address how to repair your credit ahead of buying a home.
The Bottom Line: Expect More Inclusive Credit Scoring
The introduction of VantageScore 4.0 for conventional loans opens up competition in mortgage credit scoring for the first time in decades. While FICO remains the industry standard, VantageScore’s more inclusive approach could open doors for millions of creditworthy borrowers who were previously shut out of the housing market because of their credit.
Understanding your credit score and the factors that impact it is an important piece of the puzzle in applying for a mortgage. Consider monitoring both FICO and VantageScore to get the full picture of your credit health. Your mortgage lender can help you understand how each score is calculated and the steps that you can take to improve your credit, so that you have access to the best possible interest rates and loan terms.
Ben Shapiro
Ben Shapiro is an award-winning financial analyst with nearly a decade of experience working in corporate finance in big banks, small-to-medium-size businesses, and mortgage finance. His expertise includes strategic application of macroeconomic analysis, financial data analysis, financial forecasting and strategic scenario planning. For the past four years, he has focused on the mortgage industry, applying economics to forecasting and strategic decision-making at Quicken Loans. Ben earned a bachelor’s degree in business with a minor in economics from California State University, Northridge, graduating cum laude and with honors. He also served as an officer in an allied military for five years, responsible for the welfare of 300 soldiers and eight direct reports before age 25.
