Which credit score is most used?

There are mainly two credit scoring companies that calculate your credit scores – FICO® Score and VantageScore®. About 90% of major lenders use FICO, which is the oldest credit scoring model. VantageScore was developed much later by three major credit bureaus – TransUnion®, Equifax®, and Experian® – and is the second most popular credit scoring model in the United States.

Both scores use similar scoring factors but assign different weights to each. The most important VantageScore factor is credit utilization, and payment history is only moderately influential in determining your credit score. On the other hand, payment history makes up 35% of the FICO Score and the credit utilization ratio makes up 30%.

To monitor your scores, it’s a good idea to check with your lenders about what credit bureaus they report to and the credit scoring models they use. You will have multiple credit scores because each lender may report different types of information to different credit bureaus, or may not report to any at all. At the same time, credit card companies who perform a hard inquiry on your credit file may or may not look at all the information in your credit report.

Also, keep in mind that credit scores are only one indication of your creditworthiness, and they do not guarantee loan approval.