ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The FICO Score was created by a company formerly known as Fair, Isaac and Company, while the VantageScore was developed by the three major credit bureaus (Experian, TransUnion and Equifax). They’re the only two scores that are tri-bureau, which means they’re available from all three credit reporting agencies.

Detailed explanation-2: -VantageScore and FICO are two of the most commonly used credit scores. But they’re not the only ones. Some lenders, for example, have their own custom credit-scoring models that they use to make credit decisions, according to the CFPB.

Detailed explanation-3: -VantageScore Solutions and FICO create credit-scoring models that use consumer credit data to generate credit scores-a three-digit number that predicts a consumer’s ability to repay a debt. But they use different methods to calculate scores, which may result in slight scoring differences.

Detailed explanation-4: -FICO gives more weight to payment history, while VantageScore’s latest version emphasizes total credit usage and balances. The FICO score’s credit scoring formula is based on five categories of information, while VantageScore 3.0 uses six.

Detailed explanation-5: -Credit scores typically range from 300 to 850. Within that range, scores can usually be placed into one of five categories: poor, fair, good, very good and excellent.