VantageScore FAQs

A credit score is a three-digit number that companies use to help determine whether they'll extend credit to you, and what terms. Banks, credit unions, loan companies, credit card firms, utilities, landlords and other entities all use them, although not necessarily in the same ways. The three-digit credit score number is generated by a mathematical formula using the information contained in your credit file. Your credit file is a record of your payments, open and closed accounts and other financial information submitted by banks and other firms to one of three national Credit Reporting Companies: Equifax®, Experian® and TransUnion®. Credit score models like the VantageScore®* distill that information into a three-digit number that reflects that likelihood you will become 90 days past due on a payment in the future. In general, the higher your score, the less likely you are to miss future payments.

VantageScore 3.0, with scores ranging from 300 to 850, is a user-friendly credit score model developed by the three major nationwide credit reporting agencies, Experian®, TransUnion®, and Equifax®. VantageScore® 3.0 is used by some but not all lenders. Higher scores represent a greater likelihood that you'll pay back your debts so you are viewed as being a lower credit risk to lenders. A lower score indicates to lenders that you may be a higher credit risk.

There are different credit scoring models which may be used by lenders and insurers. Your lender may not use VantageScore® 3.0, so don't be surprised if your lender gives you a score that's different from your VantageScore. (And your VantageScore® 3.0 may differ from your score under other types of VantageScores®). Just remember that your associated risk level is often the same even if the number is not. For some consumers, however, the risk assessment of VantageScore® 3.0 could vary, sometimes substantially, from a lender’s score. If the lender's score is lower than your VantageScore® 3.0, it is possible that this difference can lead to higher interest rates and sometimes credit denial.

Credit scoring can help you understand your overall credit rating and help companies better understand how to serve you. Overall benefits of credit scoring have included faster credit approvals, reduction in human error and bias, consistency, and better terms and rates for American consumers through reduced costs and losses for lenders. Your lender or insurer may use a different scoring model than VantageScore3.0® to determine how you score.

There are three different major credit reporting agencies, Experian®, TransUnion®, and Equifax® that maintain a record of your credit history known as your credit file. Credit scores are based on the information in your credit file at the time it is requested. Your credit file information can vary from agency to agency because some lenders report your credit history to only one or two of the agencies. So your credit scores can vary if the information they have on file for you is different. Since the information in your file can change over time, your credit scores also may be different from day-to-day. Different credit scoring models can also give a different assessment of the credit risk (risk of default) for the same consumer and same credit file.

VantageScore® 3.0, with scores ranging from 300 to 850, is a user-friendly credit score model developed by the three major nationwide credit reporting agencies, Experian®, TransUnion®, and Equifax®. VantageScore® 3.0 is used by some but not all lenders. Higher scores represent a greater likelihood that you'll pay back your debts so you are viewed as being a lower credit risk to lenders. A lower score indicates to lenders that you may be a higher credit risk.

There are different credit scoring models which may be used by lenders and insurers. Your lender may not use VantageScore® 3.0, so don't be surprised if your lender gives you a score that's different from your VantageScore®. (And your VantageScore® 3.0 may differ from your score under other types of VantageScores®). Just remember that your associated risk level is often the same even if the number is not. For some consumers, however, the risk assessment of VantageScore® 3.0 could vary, sometimes substantially, from a lender’s score. If the lender's score is lower than your VantageScore® 3.0, it is possible that this difference can lead to higher interest rates and sometimes credit denial.

These are the main reasons why you did not receive a perfect score from the particular credit score model that was used to generate your score. Because each credit score model uses its own formula to calculate your score, the reasons why you didn't get a perfect score will vary from model to model. Because reason codes are required by law, even people with really high scores will receive up to the top four or five reasons why their score is not perfect. The reasons you receive are always listed in order of magnitude about why your credit score was not the highest score on the scale used by the credit score model. So the first code given is the reason why you lost the most points, the second code is the reason you lost additional points, but fewer points than the first reason, and so on.

It's certainly possible that you are handling your credit accounts perfectly and you only see the “What’s Hurting?” information only due to regulations. If your score is very high and you receive the best terms for credit, read the reasons but understand that you may not need to make changes to the way you handle your credit accounts.

By definition, a high credit score doesn't have a lot of significant factors pushing it down. Sometimes, filling out the requirement of including four or five factors means some reasons that aren't very significant end up on the list. In general, if reason seem to conflict, or even contradict each other, the best thing to do is work your way down the list, addressing the most significant factors first.