FICO vs. VantageScore: The Credit Score Rivalry Heats Up | Credit.com
VantageScore is making headway into the credit score market dominated by FICO, says the firm behind the upstart measure of credit-worthiness.
Nearly one billion VantageScores were generated in 2014 — a 600% increase — says VantageScore Solutions LLC, a creation of the nation’s three credit bureaus. The number of banks using the scores increased by 24%.
The VantageScore was created in 2006 by Equifax, Experian and TransUnion as a competitor to the FICO score. The FICO score uses credit bureau data, but was invented and controlled by Fair Isaac Corporation, a separate firm.
FICO remains the industry standard. FICO scores are used in “more than 90% of lending decisions,” and by 90 of the top 100 largest U.S. financial institutions, FICO says on its website. FICO sold just under 11 billion scores during fiscal year 2014, according to spokesman Jeffrey Scott.