Not All Credit Scores Are Created Equal, FICO and VantageScore

By: Laura Mowry

Fico-vs-Vantage-credit-scoreAccording to the Fair Isaac Corporation, in the 1950’s, Bill Fair and Earl Isaac founded the company, which introduced a new concept of credit scoring to credit grantors. In 1981, FICO introduced the first credit bureau risk score. Today, the predictive analytics company works with businesses in more than 80 countries to determine creditworthiness.

FICO Score Analysis factors payment history, amount of debt, length of credit history, new credit and types of credit used to determine an individual’s risk score. Long credit history, no serious delinquencies and recent credit card use help boost a FICO score, while high credit usage, recent collection and bad payment history have negative impact. Factors also include how many times lenders have requested information about your credit. Scores range from 300 to 850 and the higher the score, the better. Continue reading