Why Your Credit Scores Never Match—and Which One Actually Matters

Key Takeaways No two credit scores are the same, even if they belong to the same person. That's because the financial industry uses different scoring models for different purposes. The credit score that matters the most is the score that your potential lender is using to determine your creditworthiness. To find out which one they use, just ask them. FICO and VantageScore are most commonly used by lenders, and there are different versions of each. Focus on improving the range your credit score is in (poor, good, very good, excellent) rather than the number itself. Your credit score impacts whether you'll get credit. Having a high score means you're more likely to be approved, and you'll also get better rates than someone with a lower score. But you may notice that your scores differ, with one report saying you have a 685 and another saying your score is 715. Confusing, right? That's because not all credit scores are created equal. They use different models, and not every lender uses the same one. The scoring model that your potential lender uses is what matters most, because that's what determines the score that the lender looks at.lechatnoir / Getty Images *Depth of credit is defined as a mix of the age and types of accounts in your report. Why Credit Scores Differ Your credit score is a three-digit number lenders use to determine your creditworthiness . The score is based on a few factors, including the length of your credit history, your payment history, your outstanding balances, the number of open and new accounts, lender inquiries, and whether there are any negative remarks against you, such as liens, judgments, and bankruptcies . Several factors determine your score. The three different credit bureaus (Equifax, Experian, and TransUnion) collect information about you and use it to create your credit report. Important Not every lender reports to each agency, which can affect how your credit score is calculated and reported. FICO and VantageScore, the most commonly used models in the industry, use different systems to create your score. FICO scores range from 580 to 800+, while VantageScores range from 300 to 850. Each weighs credit factors differently, as you can see here. How FICO Scores Are Calculated Category Weighting Payment History 35% Amounts Owed 30% Length of Credit History 15% Credit Mix 10% New Credit 10% How VantageScores 3.0 Is Calculated Category Weighting Payment History 40% Depth of Credit* 21% Credit Utilization 20% Balances 11% Recent Credit 5% Available Credit 3% *Depth of credit is defined as a mix of the age and types of accounts in your report. There are also different versions of FICO and VantageScore, and each is calculated a little differently. Aside from the traditional FICO score, there are variants, including the FICO Auto Score. VantageScore's models include VantageScore 3.0 and the more advanced VantageScore 4.0 and VantageScore 5.0. Your score is constantly changing because lenders regularly provide new information about you to the credit bureaus. For example, you may have...

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