What Are The Different Types of Credit Scores?
Not all credit scores are created equal, not even close. Did you know there are actually different types of credit scores?
Here are the 5 most popular types…
Hands down, FICO is the most popular type of credit score. It was first launched in 1958 and today, well over 90% of the largest lenders use it. All of the best credit cards and loans will take into account your FICO score when reviewing your application.
The FICO range is 300 to 850, but rarely will you find someone near the bottom or top. To put things in perspective, only 2% of Americans have a score between 300 and 499. And to be above 800 puts you in top 13%. The median is reportedly 723.
The credit bureaus have to pay Fair Isaac (the owners of FICO) to use their formula. So for that reason, they decided to join forces a few years ago and come up with another type of credit score – the VantageScore – but so far it hasnt gained much traction.
It runs on a 500 to 990 scale and every 100 points corresponds to a different letter grade; 500 to 600 = F, 601 to 700 = D, 701-900 = C, 801 to 900 = B, and 901 or higher = A. This he
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