You check your on Credit Karma and it says 720. You apply for a and the lender says your score is 695. What happened?
Welcome to the confusing world of multiple credit scoring models.
Why You Have Multiple Scores
There are two main credit scoring companies:
FICO (Fair Isaac Corporation)
- Created in 1989
- Used by 90% of lenders for lending decisions
- Has multiple versions (FICO 8, FICO 9, FICO 10, etc.)
- Each bureau (Experian, TransUnion, Equifax) calculates separately
VantageScore
- Created in 2006 by the three credit bureaus
- Used by many free credit monitoring apps
- Also has multiple versions (VantageScore 3.0, 4.0)
Pro Tip
The score you see on free apps like Credit Karma is usually VantageScore. The score lenders pull for mortgages and auto loans is usually FICO.
Key Differences
| Factor | FICO | VantageScore |
|---|---|---|
| Score Range | 300-850 | 300-850 |
| History Needed | 6 months | Just 1 month |
| Late Payments | All weighted similarly | Recent ones hurt more |
| Collections | Paid collections still count (older versions) | Paid collections ignored |
Which Score Matters?
For mortgages: Lenders use FICO Score 2, 4, or 5 (older versions) For auto loans: Usually FICO Auto Score 8 or 9 For credit cards: Often FICO Score 8 or 9 For free monitoring: Usually VantageScore 3.0
Marcus checked Credit Karma religiously and was thrilled his score hit 750. When he applied for a car loan, the dealer said his FICO was 710. The difference? A paid collection that VantageScore ignored but FICO still counted.
Why Scores Differ Between Bureaus
Even the same scoring model can produce different scores from each bureau because:
- Different data - Not all creditors report to all three bureaus
- Different timing - Information updates at different times
- Different errors - One bureau might have a mistake the others don't
Score Ranges Explained
Both FICO and VantageScore use the same ranges:
| Range | Rating | What It Means |
|---|---|---|
| 800-850 | Exceptional | Best rates, easy approvals |
| 740-799 | Very Good | Great rates on most products |
| 670-739 | Good | Decent rates, most approvals |
| 580-669 | Fair | Higher rates, some denials |
| 300-579 | Poor | Limited options, high rates |
How to Check Your Real FICO Score
Free VantageScore: Credit Karma, Credit Sesame, NerdWallet
Free FICO Score:
- Discover (free for everyone, no card needed)
- Many bank and credit card apps
- Experian free account
Paid but comprehensive:
- myFICO.com shows all your FICO versions
Do This
Check both VantageScore and FICO to understand where you stand. For major purchases like a home, get your actual FICO scores before applying.
Avoid This
Don't obsess over small score differences between models. Focus on the factors that improve ALL scores: on-time payments, low utilization, and time.
What Actually Matters
Both scoring models weight these factors similarly:
- Payment history (35% FICO, 40% VantageScore)
- (30% FICO, 20% VantageScore)
- Length of credit history (15% FICO, 21% VantageScore)
- Credit mix (10% FICO, 11% VantageScore)
- New credit (10% FICO, 5% VantageScore)
If you focus on paying on time and keeping low, both scores will improve.
Quick Win
Get your free FICO score from Discover's Credit Scorecard (discover.com/free-credit-scorecard). No Discover card needed, and it's your actual FICO Score 8.