VantageScore vs. FICO: Which is Better When You’re Building Credit?

When it comes to improving your credit, knowing how your scores are calculated and which score you’re looking at can make a huge difference. Many people start their credit journey by checking a free score online, often powered by VantageScore. Others focus on their FICO score because it’s the one most lenders use when deciding on loans and credit approvals. Both have value, but they work in different ways—and knowing those differences can help you build your credit smarter.

Understanding the Basics

VantageScore

• Created by the three major credit bureaus (Experian, Equifax, TransUnion).

• Often used in free credit monitoring apps.

• Updates frequently, allowing you to track changes month-to-month.

• Great for learning about your credit habits and spotting trends.

FICO Score

• Developed by the Fair Isaac Corporation.

• Used by the majority of lenders for credit decisions.

• Often checked during loan applications—triggering a hard inquiry.

• Your score may be 20–50 points lower than your VantageScore, depending on your credit profile.

Why VantageScore is Useful for Building Credit

When you’re in the process of building or rebuilding your credit, VantageScore can be a powerful tool for three key reasons:

1. It Teaches You About Your Credit Habits

   VantageScore gives you a snapshot of how your actions—like paying bills on time, keeping balances low, or opening new accounts—impact your score. This helps you develop better credit habits without the pressure of a lender’s decision hanging over you.

2. It Helps You Monitor Your Progress Monthly

   Because VantageScores are available through many free credit monitoring services, you can check your score and credit report regularly without causing a hard inquiry. This is essential for spotting improvement over time and catching potential issues early.

3. It’s a Great Tool for Disputing Inaccurate Information

   Reviewing your reports monthly gives you the chance to identify and challenge errors, such as accounts you don’t recognize or late payments reported incorrectly. The faster you dispute inaccurate reporting, the quicker you can protect your score.

Why FICO Still Matters

Even though VantageScore is an excellent monitoring tool, FICO is still king when it comes to lending decisions. If you’re applying for a mortgage, car loan, or credit card, the lender will almost always check your FICO score. And here’s the catch: your FICO score can be lower than your VantageScore by 20–50 points—sometimes more.

That means you could feel confident based on your VantageScore, only to find that your FICO score isn’t quite where it needs to be for approval or for the best interest rates.

The Best Strategy for Credit Building

• Use VantageScore to monitor and improve your habits. This lets you make progress without adding hard inquiries to your report with Credit Hero Score.

• Check your FICO score before applying for major credit. This ensures you know exactly where you stand in the eyes of lenders.

• Focus on the fundamentals: pay bills on time, keep utilization below 20%, avoid excessive new credit applications, and regularly review your credit reports for accuracy.

VantageScore is like your practice field—it’s where you learn, track, and fine-tune your credit game. FICO is the real game day—what lenders actually see. Use both strategically, and you’ll have the best chance of building strong credit that gets you approved with the rates and terms you deserve.