Vantage is a newer credit scoring system, introduced in 2006, that the three major credit bureaus developed to compete with the FICO scoring system. The FICO system is purely a numerical one, whereas the Vantage system uses numbers and letters.
Whenever a lender asks to see your credit report, the lender traditionally receives your FICO score. The lender pays the credit bureau for this information, and the credit bureau pays Fair Isaac, the corporation that trademarked FICO. By using Vantage, the credit bureaus don’t have to pay Fair Isaac.
The FICO score ranges from 300 to 850, whereas Vantage ranges from 501 to 990. Vantage reads more like a school report card. The range of 501 to 600 is an “F,” 601 to 700 is a “D,” 701 to 800 is a “C,” 801 to 900 is a “B” and 901 to 990 is an “A.”
Vantage uses six variables to create your score, whereas FICO uses five. Vantage scores you in this order: payment history, utilization, balances, depth of credit, recent credit and available credit. FICO scores you in this order: payment history, length of credit history, amounts owed, types of credit uses and new credit.