You’ve probably heard of a FICO® credit score. FICO is, after all, one of if not the oldest player in the credit scoring game. Since it debuted in 1989 under the name BEACON, other companies have joined in. The most well-known of those is VantageScore. We’re focusing on FICO and VantageScore but know that there are other credit score companies that cater to niche lending situations.
Credit Score vs Credit Report
Loaning out money comes with a lot of risk to the lender. Their burning question: Will the borrower pay the money back? To gauge the likelihood of that happening, lenders turn to credit scores. A credit score is derived using a mathematical formula based on information contained in a consumer’s credit report. A credit report reflects a consumer’s use of credit and typically shows personal information like address(es), repayment history, and open lines of credit.
The biggest names in credit reporting are Equifax, Experian, and TransUnion. You may also see them referred to as credit bureaus. There are other consumer-reporting agencies that collect information about an individual in specific areas like employment and renting.
Credit Score Companies
As mentioned before, FICO probably has the most name recognition. They have scoring models tailored to specific types of lending. For example, FICO 8 and FICO 9 are used for general credit and are usually available for free from banks and credit unions, like PSECU. FICO has scoring models for credit cards as well as auto and mortgage loans. Consumers usually need to pay to see those scores. For each flavor of FICO score (FICO 2, FICO 3, FICO 4, etc.), there are three possible versions because the score was derived from data in each of the three credit bureaus.
Compared to FICO, VantageScore is a relatively new credit score company. It was founded by Experian, Equifax, and TransUnion on the premise that it would use data in credit reports from all three bureaus to create one score.
Is One Better Than the Other?
Not really. Both companies look at the same data. How they choose to weight and score the data explains why you might have one score with FICO but a different one with VantageScore. Scores from either company will fall between 300 and 850 for generic score modeling.
From a lender’s perspective, they may want to use more than one credit score company to try to qualify an applicant. For example, FICO requires a minimum of six months of credit activity in order to produce a credit score. VantageScore, on the other hand, can produce a credit score from accounts younger than six months.
When it comes to having a credit score that will get you the best rates, your focus should be on what’s contained in your credit report and not what company is doing the scoring! Any credit score model is trying to determine if you’re going to make your payments, so they look at factors that relate to:
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Payment history
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Credit utilization
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Types of credit accounts, like a credit card, mortgage, auto loan, etc.
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Age of accounts
We recommend you make a regular practice of checking what’s in your credit report and taking steps to correct any errors. Federal law gives you the right to see your credit report from each of the three credit bureaus once a year. The only federally authorized website is www.AnnualCreditReport.com. A popular strategy is to request a report from a different bureau each quarter so you have an ongoing look at your credit.
As far as keeping track of your credit score, if you’re a PSECU member with a PSECU checking account or a PSECU loan, you can enroll in our free credit score service*. You’ll receive monthly updates to your score.
Need a credit card to build or rebuild your credit? Check out our Secured Visa® Card. It has no application or annual fee. Credit lines between $200 and $2,500 are available. As you use it responsibly, you’ll be helping improve your credit score and may qualify to graduate to our unsecured Classic Card. 
*PSECU is not a credit reporting agency. Members must have PSECU checking or a PSECU loan to be eligible for this service. Joint owners are not eligible.