Did you know that there is more than one scoring model to calculate your credit score? The two main models are: FICO and VantageScore. So, when it comes to calculating your score, you can have more than one.
It’s important to know that FICO and VantageScore share some similarities. For instance, both use the same five categories to calculate your credit score:
- Payment history
- Length of credit
- Types of credit
- Credit usage
- Recent inquiries
Also, FICO and VantageScore obtain consumer credit files from the same three credit bureaus – Equifax, Experian, and TransUnion.
But they also have some important differences, like how they collect their data. For example, FICO’s scoring model is based on millions of people’s credit reports. This data is then used to generate a scoring model. VantageScore, on the other hand, uses a combined set of consumer credit files that are used to come up with a single formula.
If you’re renting, did you know that solutions like RentReporters can help you build and improve your score by reporting you on time rent payments to TransUnion? For more information on how we can help you, visit here.