Published October 2025 | CreditVana Insights
Your credit score is a three-digit number that reflects how well you manage your debts and financial obligations. Lenders, landlords, insurers, and even some employers use it as a benchmark of your creditworthiness. Scores typically range from 300 to 850 — the higher your score, the more likely you are to qualify for loans, credit cards, and favorable interest rates.
The Two Main Credit Scoring Models
There are two primary models lenders rely on:
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FICO® Score – The most widely used model, developed in the 1950s, and still the standard for lending decisions.
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VantageScore® – A newer model, introduced in 2006 by the three credit bureaus (Equifax, Experian, and TransUnion).
Both range from 300–850, but their scoring categories differ slightly.
FICO® Score Ranges
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800–850: Exceptional – best rates and terms.
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740–799: Very Good – competitive offers.
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670–739: Good – average rates and terms.
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580–669: Fair – higher interest, fewer approvals.
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300–579: Poor – difficult to qualify for loans or credit.
VantageScore® Ranges
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781–850: Superprime – excellent terms and rates.
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661–780: Prime – good, average offers.
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601–660: Near-prime – costly borrowing terms.
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300–600: Subprime – limited approvals, unfavorable terms.
Fun fact: The average FICO® Score in the U.S. was around 715 in 2023.
How Credit Scores Are Calculated
Both models look at similar factors but weigh them differently.
FICO® Score Breakdown
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Payment history (35%) – On-time vs. late or missed payments.
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Amounts owed (30%) – Your credit utilization (balances vs. limits).
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Length of credit history (15%) – How long you’ve managed accounts.
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New credit (10%) – Frequency of applications/inquiries.
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Credit mix (10%) – Different types of accounts (loans, cards, etc.).
VantageScore® Breakdown
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Payment history (40%)
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Age & type of credit (21%)
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Credit utilization (20%)
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Balances (11%)
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Recent credit (5%)
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Available credit (3%)
Why You Have More Than One Credit Score
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Different models: FICO and VantageScore calculate scores differently.
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Different versions: Each model has multiple versions in use.
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Different bureaus: Equifax, Experian, and TransUnion may have slightly different data.
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Industry-specific scores: Auto lenders and mortgage providers often use tailored score versions for their industries.
Why Your Credit Score Changes
Credit scores are not fixed — they rise and fall based on your financial behavior, including:
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Applying for new credit.
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Making on-time or late payments.
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Increasing or lowering credit card balances.
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Paying off loans or closing old accounts.
Responsible habits (paying bills on time, lowering debt, keeping accounts open) generally raise scores, while missed payments or high utilization can drag them down.
How to Improve Your Credit Score
The good news: you can take control of your score. Here are four proven strategies:
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Keep balances low – Aim to use less than 30% of your available credit.
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Pay on time – Even one late payment can significantly hurt your score.
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Keep old accounts open – They help lengthen your credit history and utilization ratio.
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Limit hard inquiries – Too many applications in a short time can lower your score.
CreditVana Takeaway
A credit score is more than just a number — it’s a snapshot of your financial responsibility. The better your score, the easier it becomes to qualify for loans, secure better rates, and open financial opportunities.
With CreditVana, you can:
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Check your 3-bureau credit scores instantly — all in one place.
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Track changes over time with easy monitoring.
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Get tailored tips to strengthen your credit profile.
Building credit takes consistency, but the payoff is worth it: lower borrowing costs, more approvals, and greater financial freedom.
✅ Tip from CreditVana: Start today by checking all three of your credit scores for free. Seeing where you stand is the first step toward improving your financial future.
