How Many Credit Scores Are There?

Though there are two primary credit scoring models in use in the U.S., the FICO score and VantageScore, the truth is that everyone has multiple different credit scores. In this article, we’ll help you understand the two main credit scoring models, other scoring models, and why you have more than one score, answering the question; how many credit scores are there? 

Highlights & Key Takeaways

• Your credit score is a three-digit number that gives lenders a snapshot of your creditworthiness, but you have more than one credit score.
• Different credit scoring models, and even variations with each of those models, result in many different credit scores. 
• Though your scores may vary, the same habits can help you build strong credit. 
• To be considered for personal loans for excellent credit, you should ensure you pay your bills on time, keep your credit balances low, and follow a budget to keep your spending under control 

Why You Have So Many Credit Scores

Different lenders and creditors and the three credit bureaus, Experian, Equifax, and TransUnion, have their own methodologies for determining credit scores. Each credit bureau has slightly different data on your credit history, which can result in a different score. And sometimes, information may only be reported to one or two of the credit bureaus, not all three. As a result, you can have dozens of different scores. 

The primary reasons your score will vary are as follows:

• The different bureaus use different scoring models
• A creditor may be looking at a different version of a credit scoring model (the credit bureaus make changes to their scoring models as the credit industry evolves and as new data and trends emerge)
• Information isn’t always reported to all three credit bureaus; to that end, each bureau might receive different information. 
• There may be credit report errors on one report and not the others 

Credit Scoring Models

Different credit bureaus and lenders use multiple credit scoring models, but the most commonly used credit scores in the U.S. are the FICO and VantageScore. We’ll go into more detail about each below.

FICO

FICO, short for Fair Isaac Corporation, was founded by Bill Fair and Earl Isaac in 1956. Fair, a mathematician and engineer, and Isaac, a marketer, set out to develop a system that could determine the creditworthiness of an individual. Ultimately, they wanted to provide lenders with a standardized and objective approach to measuring credit risk. 

Before the FICO score, creditors relied on more subjective data, such as personal relationships and anecdotal habits. But since the FICO score was introduced to the market, it gained widespread popularity, placing borrowers and prospective borrowers on an even playing field. Today, the FICO score is a measurement that ranges from 300 to 850 and is calculated based on the following five factors.

These calculations then assign a ranking. Those rankings are:

VantageScore 

The Vantage Score was developed in 2006 as a partnership model amongst the three credit bureaus; Experian, Equifax, and TransUnion. The intention was to provide a competitive model so lenders could choose how to look at a consumer’s creditworthiness. The bureaus felt their new model was more inclusive and could help lenders provide credit to a broader range of consumers, including those with a less traditional credit history.

Though VantageScore uses a methodology similar to FICO, the calculations are based on slightly different factors and weights. Understanding the differences between VantageScore 3.0 (released in 2013) and 4.0 (released in 2017) can help you understand yet another reason why your score may vary from time to time. We’ll discuss that in more detail later in this article.

The VantageScore also provides rankings based on your score. You may hear these terms, especially prime, mentioned by news reporters when discussing the current state of the economy and its impact on interest rates.

How Can I Improve All of My Credit Scores?

Understanding the differences between the various credit scoring models can be confusing. And understanding the difference between your credit score and credit report is important too. Your credit report is a detailed record of your credit history, including credit accounts, payment history, credit inquiries, and public records such as bankruptcies, liens, and judgments. Your credit score, on the other hand, is a numeral representation between 300 and 850 that gives insight into your creditworthiness.

So, to improve your credit score and ensure the information on your credit report is favorable, do the following.

• Pay your bills on time - Never miss a minimum amount due or a payment deadline. Failure to make payments on time, especially if you don’t make up for it within 30 days, can cause your credit score to plummet by as much as 180 points, regardless of the scoring model used.
• Keep your utilization low - Your credit utilization compares the amounts you owe to your credit limits. The best guideline is to keep your balances at 30% or less.
• Keep your oldest accounts open - Once you pay off a credit card, it might seem like closing the account makes the most sense, especially if you don’t plan to use the card again. But the reality is that you should keep these accounts open and maintain that zero balance to help that utilization factor mentioned above.
• Don’t open too many accounts in a short period - Opening too many new accounts in a short period can be a red flag to potential lenders and creditors. A good guideline is to wait about six months between credit card applications. And remember that every time you apply for new credit, it can result in a hard credit inquiry which impacts your credit score by up to five points and can remain on your credit report for up to two years. 

Different Versions of Credit Scores 

The bureaus have different versions of credit scoring models because of the need to improve the accuracy and predictiveness of credit scores continuously. As the credit industry evolves, new data and trends may impact calculating credit scores. Credit scoring companies update their models periodically to reflect these changes and ensure their scores remain relevant and useful for lenders.

Both FICO and VantageScore have different models for different reasons.

FICO Score

There are many different versions of the FICO score. FICO Score 8 is the most widely used and what introduced in 2009. This version of the score emphasized the impact of credit card balances on credit scores. It also incorporated the use of trended credit data which examines a borrower’s credit behavior over time instead of at a single time.

FICO Score 9 was introduced in 2014, and it includes several changes designed to make the score more predictive and inclusive. FICO Score 9 considers rental payment history and reduces the impact of medical collections on credit scores. That said, creditors still tend to use version 8.

FICO also offers industry-specific scoring models. Take a look at the following:

• FICO Auto Score - This version of the FICO score is designed specifically for the auto lending industry. It considers factors such as the financed vehicle type and the borrower's credit history.
• FICO Bankcard Score - This version of the FICO score is designed specifically for credit card issuers and places greater emphasis on credit card usage and payment history.
• FICO Mortgage Score - This version of the FICO score is designed specifically for the mortgage industry, and it considers factors such as the borrower's debt-to-income ratio and credit history.
• FICO Small Business Scoring Service (SBSS) Score - This version of the FICO score is designed specifically for small business lending, and it considers factors such as the age of the business, the owner's personal credit history, and the business's financial data.

The credit bureaus will use different versions of the FICO score based on their needs and scoring models.

Auto lending: 

Credit cards:

Mortgages:

The newest version of the FICO score is FICO Score 10, released in January 2023. This new score will incorporate credit card balances over the past 24 months, which can reflect poorly on those carrying them forward each month. This will likely result in a wider gap between those with good credit (670 to 739) and bad credit (below 580).

Finally, FICO offers a product called UItraFico which helps consumers improve their credit scores based on indications of good financial behavior. This opt-in program connects your checking, savings, and money market accounts.

VantageScore

Just as the FICO score has different versions, so does the VantageScore. The first, VantageScore 1.0, was released in 2006 and used a scale of 501 to 990. This score emphasized payment history more than other credit scoring models available at the time. Here are the key things you should know about the subsequent VantageScore releases.

• VantageScore 2.0 - This score was introduced in 2010 and used a scale of 501 to 990, similar to the original version. However, it placed a greater emphasis on credit utilization and better differentiated between consumers with high revolving credit balances.
• VantageScore 3.0 - Introduced in 2013, this version adopted the scale of 300 to 850 to provide consistency with the FICO score. It incorporated trended credit data to predict future credit behavior better and reduced the impact of paid collections and medical debt on credit scores.
• VantageScore 4.0 - This version was introduced in 2017 and kept the same scoring scale as 3.0. However, it incorporates further advanced predictive analytics and continues reducing medical debt's impact on credit scores.

Per the VantageScore website, over 3,000 unique users of VantageScore credit scores, including over 2,600 financial institutions. Also, nine of the ten largest banks and 43 of the 100 largest credit unions use VantageScore in one or more lines of business.

Lenders using VantageScore include TD Bank, American Express, Capital One, OneMain Financial, and Upstart.

Other Credit Score Models 

While FICO and VantageScore are the two major credit scoring models, other models exist. Here are some other models in use today and what you should know about each.

• ChexSystems Consumer Score - This score helps banks determine the risk of a consumer opening a deposit account. There is a range of 100 to 899, with a higher score indicating a lower level of risk. The ChexSystems Consumer Score is based on several factors, including a consumer's banking history, such as account closures, unpaid overdrafts, and fraud, among other things.
• Connect - This score is a proprietary score built by MicroBilt Connect. The Connect Score is a "comprehensive risk score" that considers various data sources, including credit data, public records, and alternative data sources, to evaluate a consumer's credit risk. The score is intended to help businesses make informed decisions about extending credit, verifying identity, and managing risk. 
• Credco - Developed by CoreLogic, the Credco score was designed to help lenders and other businesses assess a consumer's creditworthiness by considering their credit history and other relevant factors. The specific factors used to calculate the Credco score are not publicly disclosed. Still, it is assumed that factors such as credit utilization, payment history, length of credit history, recent credit inquiries, etc., are considered.
• Credit Optics Score - Developed by LexisNexis, the Credit Optics score was designed to help lenders and businesses assess the risk of intentional credit misuse or fraud by taking into account a variety of data sources and indicators of potentially fraudulent behavior.
• CreditVision New Account Score - This score was developed by TransUnion, one of the three primary credit bureaus in use in the U.S. Based on their credit history and other relevant data, the CreditVision New Account Score was created to predict the likelihood that a consumer will open a new credit account within the next 12 months.
• FactorTrust Score - Created by a subsidiary of TransUnion, the FactorTrust Score was designed to evaluate the creditworthiness of consumers who may not have a traditional credit history, such as those who are unbanked or underbanked.
• Equifax Core Credit Score - Created by Equifax, another of the three primary credit bureaus in the U.S., the Equifax Core Credit Score ranges from 280 to 850 and is used to evaluate consumer creditworthiness. 
• Experian Lift - Developed by Experian, the third of the three major credit bureaus, the Experian Lift score was designed to identify consumer creditworthiness for those with thin credit files or who have experienced credit challenges.
• Factual Data - Factual Data is a consumer reporting agency that provides credit and background screening services to businesses across various industries. The information is not used to create a score but by businesses to assess the creditworthiness and reliability of potential borrowers, employees, and tenants. Factual Data's services help businesses make informed decisions while complying with applicable laws and regulations related to consumer privacy and credit reporting.
• RiskView Score - RiskView is a LexisNexis product that incorporates alternative data sources, such as rental payments and utility bills, which may help provide a more complete picture of a consumer's creditworthiness. The score helps provide insight into consumers with little or no credit history.

How to Read Information on Your Credit Report

The three main credit bureaus generate your credit scores based on information on your credit report. Lenders may not report information on your credit reports to all three bureaus, which means your credit reports could be different. Different information translates into different credit scores. That also means that an error appearing on your credit report with one credit bureau may not be present on your credit report with another.

You can access your credit report for free once per year from annualcreditreport.com or through the credit monitoring services mentioned later in this article. It is recommended that consumers check the accuracy of their credit reports at least once per year and their credit scores more often.

Here is what to look for on your credit report:

• Personal Information - Ensure that your name, address, Social Security number, and other personal information are accurate and up-to-date.
• Accounts - Review all accounts listed on your credit report to ensure they belong to you. Look for accounts you don't recognize, which could signify fraud or identity theft.
• Payment History - Review your payment history for each account listed on your credit report. Ensure that all payments are being reported accurately and that no late payments or delinquencies are incorrectly reported.
• Balances - Look at the balances on all your accounts to ensure they are accurate. If you have paid off an account, ensure that it is reported as such.
• Credit Inquiries - Look at the credit inquiries listed on your credit report. Ensure that all inquiries are ones that you have authorized, as unauthorized inquiries could be a sign of fraud or identity theft.
• Public Records - Check for any public records listed on your credit report, such as bankruptcies or judgments. Ensure that all public records are accurate and up-to-date.

If you find an error on your credit report, the next thing to do is file a dispute with the applicable credit bureau(s). Each credit bureau, Experian, Equifax, and TransUnion, has a dispute process for consumers to follow.

How to Check Your Different Credit Scores 

There are several ways that you can check your credit score. Many financial institutions and credit card companies now offer free access to your credit score as one of your perks for membership. In most cases, these offerings allow you to check your credit score as often as you want, though you should know that scores and credit reports are only updated every 30 to 45 days, based on when a creditor reports on your recent activity. 

Credit monitoring services are also great ways to monitor your credit score and know if something could be wrong. All three bureaus offer these services; Experian, Equifax, and TransUnion, and costs vary based on the program you elect. However, you should know that each source to check your credit could offer a different score. For example, TransUnion and Equifax credit scores are generated using the VantageScore 3.0 model. Experian offers you your FICO score. 

Finally, you can also pay to get your FICO score through FICO’s website. Dispute the system you use; what you see might not be the same as what your lenders see, as scores change constantly. That said, your score will be similar enough to be directional and inform the creditor or lender of your creditworthiness. 

What Can Help All of Your Credit Scores 

Though your score might be calculated differently depending on the scoring system used, there are some tried-and-true tactics to improve all of your credit scores across the board. Those tactics include:

• Paying your bills on time 
• Keeping your utilization low 
• Keep your oldest accounts open 
• Avoiding the desire to open too many accounts in a short period (so only apply for the credit you need)
• Developing a budget to help you live within your means and prevent you from maxing out your credit cards
• Checking your credit report at least once per year (or more) to ensure information is accurate
• Diversifying your credit mix so that you do not have too much of any one type of credit account (a rule of thumb is to keep credit cards to four or fewer)
• Being patient as improving your credit score takes time 

Final Word

The FICO and VantageScore systems are the most common credit scoring systems. But to answer how many credit scores are there, consumers should know that multiple credit scoring models are available. These other scoring systems were developed to serve niches in the lending industry. By practicing responsible borrowing habits, keeping your balances under 30%, and using your credit wisely, you can improve your credit score, making you eligible for low-interest rates and better borrowing terms later, such as from a personal loan for good credit.