Those credit scores you see may not be what lenders actually use
VantageScore, meanwhile, says that 2,800 organizations used close to 10.5 billion of its scores from July 2017 through June 2018, based on a study by global consulting firm Oliver Wyman. Most of that usage, though, came from credit card companies managing existing credit card accounts and prescreening applicants.
The VantageScore was created in 2006 as a competitor to FICO, which has been around since 1989. Both brands use similar data to compute your number — including things like outstanding debt, payment history and other financial tidbits that help predict whether you'll repay what you borrow. The most familiar versions of both VantageScore and FICO result in a score that falls on a scale of 300 to 850.
Of course, regardless of the score lenders choose to use, they also typically weigh additional items including income, length of employment, stable housing or other aspects of your financial life that don't show up in your credit report or get reflected in your score. For example, a $160,000 mortgage paying 4% over 30 years incurs $115,280 in interest. Just a half percentage point higher, 4.5%, would yield $132,128 in interest over the same time — $16,848 more.Highly influential: Total debt and amounts owedVantageScore Factors:Moderately influential: Total balances and debtConsumers often see the biggest discrepancy in scores when they apply for a mortgage, experts say.
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