FICO vs. VantageScore vs. Experian vs. TransUnion vs. Equifax | PrimeWay Federal Credit Union

FICO vs. VantageScore vs. Experian vs. TransUnion vs. Equifax: What You Need to Know

If you've ever tried to get a loan, credit card or even an apartment, you’ve probably heard terms like FICO, VantageScore, Experian, TransUnion and Equifax. These names are connected to your credit, but they serve different purposes. Let’s break it all down in simple terms so you can understand how each one works and how they affect your financial life.

What Are They?

• FICO Score: A type of credit score that most lenders use to decide if they should give you a loan. It’s created by a company called the Fair Isaac Corporation.
• VantageScore: Another type of credit score. This one was created by the three major credit bureaus: Experian, TransUnion and Equifax.
• Experian, TransUnion and Equifax: These are credit bureaus. Their job is to collect information about your credit history, like whether you pay your bills on time and provide it to lenders.

Credit Scoring Models vs. Credit Bureaus

These terms might sound similar, but they’re very different. Here’s how they compare

How FICO and VantageScore Work

Both FICO and VantageScore are credit scoring models. They look at your credit history and give you a score between 300 and 850. A higher score is better and means you’re less risky to lenders.

What Affects Your Score?

• Payment History: Do you pay your bills on time?
• Credit Usage: How much of your available credit are you using?
• Length of Credit History: How long have you been using credit?
• New Credit: Have you opened a lot of new accounts recently?
• Types of Credit: Do you have a mix of credit, like credit cards and loans?

Key Differences Between FICO and VantageScore

• Data Requirements: FICO needs six months of credit history to create a score, but VantageScore can calculate a score with just one month.
• Lender Use: FICO is more commonly used by lenders, while VantageScore is often provided for free through credit monitoring services.
• Score Updates: Both update regularly, but the specific timing can vary.

The Role of Credit Bureaus

Experian, TransUnion and Equifax are credit bureaus. They don’t calculate your score—they provide the data used to create it. For example, they track:

• Your payment history
• How much debt you have
• Public records like bankruptcies

Each bureau might have slightly different information because not all lenders report to all three.

Why You Might Have Different Scores

Because the information each bureau has might vary, your FICO or VantageScore could be slightly different depending on which bureau’s data is used.

Which One Matters Most?

• For Loans and Credit Cards: FICO is usually the most important because 90% of lenders use it.
• For Monitoring Your Credit: VantageScore is great for keeping an eye on your credit health since it’s often available for free.
• For Full Credit Reports: The credit bureaus (Experian, TransUnion and Equifax) are your go-to source.

How They Work Together

Here’s how it all fits:

• Credit Bureaus (Experian, TransUnion, Equifax) collect your credit information.
• Credit Scoring Models (FICO and VantageScore) use that information to calculate your credit score.
• Lenders look at both your credit report and credit score to decide if they’ll lend you money.

What Are FICO, VantageScore, Experian, TransUnion and Equifax?

The table below provides a detailed comparison of FICO, VantageScore, Experian, TransUnion and Equifax.