If you’ve been researching how to increase your credit scores, you may have come across several different types of scoring models. Keeping track of scoring…
If you’ve been researching how to increase your credit scores, you may have come across several different types of scoring models.
Keeping track of scoring models can be confusing, especially if you’re trying to achieve the best credit possible.
In this post, you’ll find out about the different scoring models and how to use them to your advantage.
Scoring Model #1: FICO
FICO is the most common system and it’s the one you should spend the most time with if you want to improve your credit.
The FICO scoring model rates each person’s credit from 300 to 850. Any score below 600 is considered poor, and any score above 740 is considered excellent.
The FICO scoring model uses several factors to determine your score, including:
Scoring Model #2: VantageScore
VantageScore is another popular scoring model and it is co-owned by the three bureaus, Experian, Transunion and Equifax. Like FICO, VantageScore ranges from 300 to 850.
Here is how the company determines your VantageScore:
Lenders and agencies may choose to use a completely different model than the two biggest. Other models include Transunion’s TransRisk, Experian’s National Equivalency Score, CE Credit Score, Insurance Score and Credit Xpert Credit Score.
The two main scoring models are FICO and VantageScore, and those are the systems most lenders use when determining your credit score. If you want more customized credit advice so you can raise your credit scores and achieve financial freedom, go here to --> Schedule a free consultation
There was a problem reporting this post.
Please confirm you want to block this member.
You will no longer be able to:
Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.