Question by Sarah: What a fico score, and what is the difference between that and a transunion score?
Can somebody explain to me the difference between credit scores? I got my Trans Union score and it was about 12 points higher than my FICO score. I am not sure what a FICO score is so if anybody can shed some light on this subject it would be great!!
Best answer:
Answer by SPIFIMAN1
This should help you to understand how credit scores work..
FICO scores from 300 to 850 and Vantage Plus scores from 501 to 990.
Here is the breakdown for both systems.
Vantage Plus system scores from 501-990.
A-901-990
B-801-900
C-701-800
D-601-700
F-501-600
FICO system scores from 300-850.
Elite-740-& up
Prime-700-739
Preferred-660-699
Standard-625-659
Sub-prime-624-& under
FICO is the only one that matters since it’s the one that all major lenders look at.
So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.
As far as what makes up credit scores it’s the following;
1. Payment history (longer the better) 35%
2. Time in bureau (longer the better) 15%
3. Types of credit (mix of credit cards & installment loans) 10%
4. New credit (new accounts and inquiries) 10%
5. Debt to credit ratio (lower the better) 30%
So as you can see credit is based on opening and paying accounts. So without that you would have no score at all.
Good luck.
Add your own answer in the comments!
