What is VantageScore?

VantageScore® is one of the two major credit-scoring services lenders use—along with FICO®—and was developed by the three major credit bureaus, Experian®, Equifax® and TransUnion®. Lenders often check VantageScore’s credit scores when determining creditworthiness.

Read on to learn more about VantageScore.

What you’ll learn:

• VantageScore is a credit-scoring model that calculates credit scores, which lenders use to determine a borrower’s creditworthiness. 

• It was created by the three major credit bureaus as an alternative to the popular FICO scoring models.

• VantageScore credit scores are based on a number of factors like payment history, credit utilization, credit age and recent hard inquiries.

• Typically, a good or prime credit score falls between 661 and 780.

VantageScore calculates credit scores based on key factors like payment history, credit usage and total debt. By incorporating trended and alternative data—such as rent or phone payments—VantageScore’s scores can be used by lenders to evaluate borrowers with limited credit histories.

Although it was founded by Experian, Equifax and TransUnion in 2006, it operates independently today. 

And while FICO uses credit-scoring models specific to each bureau, VantageScore created what it calls a “tri-bureau” model. Using data from all three credit bureaus, VantageScore calculates credit scores based on a set of factors related to credit activity and credit history:

• Payment history: Your payment history tracks how reliably you’ve repaid debt. Because lenders and credit-scoring models weigh this factor heavily, a late payment can remain on a credit report for up to seven years and can negatively impact credit scores.

• Credit utilization: Credit utilization measures how much available credit a person is using. You can find your credit utilization ratio by dividing the amount of credit in use by your total available revolving credit. It’s recommended to keep your credit utilization below 30%.

• Depth of credit: The length of time a person has had credit accounts open, including the oldest, youngest and average account ages, reflects your depth of credit. Depth of credit also covers the types of credit accounts, or credit mix. This may include installment credit, such as personal loans and mortgages, and revolving credit, such as credit cards.

• Recent credit: New credit applications typically involve a hard inquiry on credit reports. Too many recent hard credit inquiries can temporarily lower credit scores and might be viewed negatively by lenders.

• Balances: This factor considers the total balance of current unpaid debt. Even if payments are made on time, maintaining high balances can affect credit scores. And carrying a balance might negatively affect your credit, too.

• Available credit: While this is the least influential factor in VantageScore scoring models, having more credit available can improve credit scores.

VantageScore calculates credit scores on a scale of 300 to 850. Within that scale, it says there are four credit score ranges:

• Superprime: 781-850

• Prime: 661-780

• Near prime: 601-660

• Subprime: 300-600

Launched in 2013, VantageScore 3.0 is widely used by lenders and designed to provide consistent tri-bureau scoring—even for people with thin credit files or who may have been previously “unscoreable.” 

Here’s how the factors are weighted in VantageScore 3.0:

• Payment history: 40%

• Depth of credit: 21%

• Credit utilization: 20%

• Balances: 11%

• Recent credit: 5%

• Available credit: 3%

Introduced in 2017, VantageScore 4.0 relies on advanced machine learning and trending data to enhance risk assessment. It can score consumers with limited credit history and, as of July 2025, is approved for Fannie Mae and Freddie Mac mortgage loans.

Here’s how the factors are weighted in VantageScore 4.0:

• Payment history: 41%

• Depth of credit: 20%

• Credit utilization: 20%

• Recent credit: 11%

• Available credit: 2%

VantageScore 5.0, released in April 2025, leverages 24 months of trended data to significantly enhance risk prediction. Like its predecessors, it’s designed for tri-bureau consistency, improves scoring for thin-file consumers with proprietary GAIN Attributes™ and is especially impactful for unsecured lending.

Unlike its predecessors, which weigh different factors, VantageScore 5.0 uses a more advanced, machine-learning-driven architecture with proprietary attributes that capture both point-in-time credit behaviors and historical trends at the account level, offering a more granular risk prediction than simple percentage buckets.

A prime or good credit score, according to VantageScore, is generally any score between 661 and 780. But lenders ultimately get to decide about a borrower’s creditworthiness. Having good credit scores might help you get approved for more credit and qualify for lower interest rates.

VantageScore and FICO are two credit-scoring companies. According to the Consumer Financial Protection Bureau (CFPB), most lenders continue to rely on FICO scores when evaluating loan or credit card applications, as well as determining rates and terms. But both companies’ scores may be used by lenders to review applications for things like credit cards, student loans and auto loans.

Each company uses its own credit-scoring models to calculate credit scores. And the CFPB says that a credit score is based on the specific information included in the calculation. This means you can have several different credit scores at any given time. FICO says it creates scores for borrowers with at least one account that has been open for six months or longer. On the other hand, VantageScore scores may be generated as soon as about a month after an account appears on a credit report, even if it has been open for less than six months.

Here’s a quick overview of their differences:

VantageScore uses multiple scoring models to calculate credit scores. The most recent versions, VantageScore 3.0, 4.0 and 5.0, offer scores on a scale of 300 to 850. And those scores might be a factor when you do things like apply for a loan or credit card.

Knowing what your credit scores are can help you understand how you might appear to lenders. Monitoring your credit with CreditWise from Capital One—or getting free copies of your credit reports from AnnualCreditReport.com—might be a good place to start. And once you have a clearer picture of where you stand, consider checking which Capital One credit cards you’re already pre-approved for—with no impact on your credit scores.