FICO VS VantageScore
In the United States, two companies dominate the credit scoring industry. FICO®, the oldest and the industry leader, and VantageScore®, the score used by Credit Karma which has been growing in popularity since it was created in 2006.
FICO
In the transportation industry, FICO® scores are the main scores used by all the top lenders. Base FICO® scores range from 300 to 850, and the main factors that impact a score can be separated into five categories:
- Payment History
- Credit Usage
- Length of Credit History
- Types of Accounts
- Recent Activity
The finance software that we use here at Pedigree uses your FICO® scores, allowing us to best predict what lenders to use.
While this software offers many benefits, sometimes the FICO® scores that are reflected on our software differ from what a customer is expecting creating confusion and frustration. This confusion and frustration is normally due the difference between a FICO® score and a VantageScore®.
VantageScore
VantageScore® is like FICO® in many ways but there are some key differences. What qualifies as a good score for VantageScore® and FICO® varies. On the 300-to-850 scale, a score of at least 670 (for FICO®) and 700 (for VantageScore®) will generally qualify as having good credit. The variations in scoring are a result from differences in calculations of:
- Credit Utilization
- Collection Accounts
- Credit Inquiries
Because of these differences, someone using Credit Karma may think their FICO® Score is higher than it really is.
Lenders often want to see a FICO® Score above 670, and sometimes even 700.
That gap between scores can be the difference between getting approved or denied — or paying thousands more in interest over the life of a loan.
Improving Your Credit Score
The good news? The same habits can improve both of your credit scores.
Each company uses its own scoring model, but they’re all trying to predict the same thing — how you manage credit.
That means if you build a strong credit history, all your scores can improve.
A simple way to do that is to check your credit scores regularly.
If you already use Credit Karma, add Experian’s free credit monitoring service.
It gives you access to your FICO® Score, your credit report, and helpful tools to understand how credit scores work.
Financing at Pedigree Truck & Trailer Sales
Using our innovative financing software, Pedigree uses soft credit pulls, that do not affect the credit scores of our customers, to pre-qualify buyers looking for financing.
Using this technology allows us to give our customers an estimate of their potential financing terms, allowing them to know what to expect to pay without affecting their credit score and hurting their chances of getting financing in the future.
Click below to apply now and start your journey toward financing your next semi truck or used reefer trailer!
