Why your credit scores are different from each other - How so many FICO, VantageScore scores happen 

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Here's my easy explanation. The credit bureaus have the scoring system set up with the ultimate goal to help Banks land you in a mortgage, which is the big ticket item for banks. The closest thing to a mortgage is a loan. Credit card account management supplements your loan management record. That's called Credit Mix. And there are three parts to a complete Credit Mix: Credit cards (revolving credit) Loans (personal, auto, etc) Mortgage (real estate) Most people think the other way around, that credit cards come first. But I don't think that's the best way to think about it. And the way I know this is because if you have credit cards you're managing well and you have a loan that you've had for a few years... When you pay off that loan it's going to make your score drop quite a bit. But if you pay off a credit card it doesn't have nearly the effect. Usually has a positive effect, but it could have a slightly negative effect for 30 days. That's how you know loans are weighted heavily. Next as far as credit cards... On time payments that are more than the minimum is critical. Utilization percentage of available credit line is next critical. Credit scores improve as credit utilization improves and the big markers are at 5% increments. When your utilization drops from 30% to 25%, to 20%, to 15%, to 10%... You'll see your scores improve. And then the key marker they look for is 9% or less. Between 5% and 9% is what they love to see. And you want that for every card. And you want that for the sum of your cards. BUT... It's fine to have 0% utilization on a card or cards. But make sure you use them a few times per year, and let the statement post a balance, and then pay the balance off right after the statement posts. Think of when you make your payments as if you were taking a military physical readiness test. A lot of people want to know what is the minimum to shoot for: minimum number of sit-ups, push-ups, and time for the run. But you want to go for the maximum: 300 points on the physical readiness test. With credit cards the minimum would be to make the minimum payment on the due date. That's good. But it's not impressive. It will keep you in the Navy, but you may not get that promotion you want. If you want to impress them, do the maximum. The maximum you can do would be to pay the full balance as soon as the statement posts. A lower performance would be to pay less than the full balance as soon as the statement posts. Another performance drop would be to pay a little bit more than the minimum as soon as the statement posts. And then like I said the minimum performance which is not impressive is to pay the minimum on the very last day possible: the due date. Don't do that. Because if anything goes wrong and you miss your due date, even if you pay it before it's 30 days late, the credit card company will charge you interest, and probably a late fee, and likely will assign you the max penalty interest rate. And that penalty rate may last a few months, or it may be permanent. It spells it out on your monthly statement. So always pay as soon as the statement posts. And make your goal for each card and the sum of your cards is 9% or less utilization. 9/100 = 9%. 90/1000 = 9%. 900/10,000 = 9%. 9,000/100,000 = 9%. That will enable you to get the best credit score. Add to that a loan OR a mortgage (even a very small mortgage of $5,000 or less), and you will really optimize your credit scores.

This system is so frustrating. Just pay your dues when it's due 😂

My fico8 score is a whole 58 points higher than my vantagescore. Talk about perplexing 😂😂

The credit score game is as clear as mud. So I genuinely thank you so for explaining all of this!

A perfectly clear presentation of how perfectly muddled the entire "scoring" system is.

You've explained FICO score better than any video I've seen. 🙌🏾

That is RIDICULOUS! Can everyone get on the same page 😒

I hate vantage score. Vantage score tu 672 eq 677, fico scores eq 786, tu 782 ex 784. Over 100 points difference. Seriously?!!

Even the lenders must be confused. Thanks for clearing this up for us a little. I'm still a little bewildered. I noticed transunion is used the most. A circus. This is nuts.

FICO is flawed! I lost 7 points just because I got a credit card limit increase via soft pull ! I also lost 4 additional points because a credit card increased by $38 , and my overall capacity is 3%. Bullshit !!!

“Wait what”? You are hilarious sir. In that short reply you showed how surprising and kind of convoluted this can all be in its current form.

@ProudMoney, thank you for breaking this down. Your video answered ALOT of my questions.

Discover has my score at 791 and credit karma has it at 730 don’t know which to believe.

Wow. Thank you that's such a clear explanation of how scores will vary based on which credit bureaus lenders are reporting to.

Thank you for sharing this video. I learned a lot about how FICO works.

Boy do you know your stuff.👍🏾

Be careful everyone! Lots of comment spammers. I wish you all great success in your finances. Take care.

Welcome to who’s credit is it anyway, a game where everything’s made up but the points unfortunately matter

This is the only agencies on earth that are allowed to report inaccurate and untimely information, no other entity is allowed to report and sell if all the information is not true.

My Discover credit score is through TU.

A topic that confuses many. Great video!

And A More important question is?, WHY do ALL the financial institutions choose the one that gives EVERYONE! the LOWEST Score.

I got my first auto loan 3 years ago... I asked the dealership what score they used to pull my credit and they said it was going to be the lowest score possible base on my creditworthiness... kind of messed up but I get that they get tons of repos and issues when it comes to getting a car loan. End of the day they wanted me to pay 17% interest and I told them my bank would do 8%. They matched it lol But call it a hunch- most or some places may rely on the lowest scores based on the information

This is stupid. Our whole credit system is stupid. This bullshit's got me annoyed at my score going down for paying off a car loan. I just want to buy a house someday. I don't need this drama.

You did an excellent job presenting this information 👍🏽👍🏽

You should make a video on how to build up mortgage scores, that would be useful

Great video! Explains the distinction between lenders, as well as credit bureaus, very easily. Perfect for those that are new to credit education! Keep up the great content!

I love your channel. Great and useful info. Thank You

Since finding your channel, been working my way through your videos. While o know most of this, I still find it a nice summary to refresh my recollection how this gimmick is vague and ambiguous. FYI, it’s my understanding that effective 7-1-22, medical debt is no longer a reportable debt to one’s credit profile.

I hope they release Fico 20 to really confuse people.

A perfect credit score doesn’t mean anything if you don’t have the payment history to back it up

DISCOVER uses "Transunion" FICO 8, you mentioned Experian FICO 8

Just get rid of it all and re-do it so it will work with the people and not against them. Just us one score.

This all sounds overly complicated and convoluted for no reason.

Haven't paid my mortgage by the 1st of the month hardly ever... I found out it doesn't affect my credit score until after the 16th of the given month... late payments to utilities don't affect credit either...

My Experian score is always the highest. Equifax is next- transunion the lowest.

'Hey, what's your credit score?' '.... Yes.'

This video was so helpful! I'm new to tracking my scores and was confused when one went up and another didn't but now i know one is fico and the other is probably the other one. Makes more sense now

Thank you for explaining it so well.

My Equifax was off 77 points, trans 45 points from my bank

Another awesome video, thanks !!!

Discover actually uses Transunion data for the FICO 8 score.

Thanks for the video. Basically Fico is just another way to screw the consumer. I found out trying to apply for a home loan. My regular Fico score is 675 and my mortgage score is 625. 😑

What a scam! And, as the product, why aren't we getting paid on our own information.

This video makes sense, 2 what I've been seeing on my credit reports. Like the scores that were affected, by closing an account were vantage scores 💯. My bank fico score, discover, are above vantage scores 💯💯. Myfico, transunion and experian, are 5 points above them 💯. I'm confused, about that 1❓

I swear I've seen 5 different scores within a 1 hour span! Idk what to do anymore lol but I'm not giving up

So which credit score provider gives you the widest breadth of available scores?

I would like to know?? Do the credit agencies communicate with each other, when it comes to the dispute process

You the man great 😊 information ℹ️ I never knew 🤔 just got educated on credit 🙏🏾

This is so frustrating with all these fico scores why do they have so many ??? 😑

Fantastic vid. Great info. Don't know how you didn't fall victim to respiratory arrest spilling all that intel. Thank you for your insight!

I got 677 , and the other one 753 and the other one 757 like bruhhhh com’on just give me 760 already

I have generally good credit; but I have to say it seems like a racket. There should be three(all fico) and they should do business for you, depending on the area/region in the Country, that you live in. This is one issue, I believe the Government should regulate because so much rides on this for for the consumer ,and business owner (not only the business owner). Seems to me that they found a way to make some people pay more, based on what score they pull (that the average score). But I do understand how they may have a different one for mortgages, and autos. They should be required to average out your scores .

My Vantage scores are 25 points higher than my FICO scores because of one thing: Out of all my accounts and all the payments I've made I had ONE payment in 6 years that was 30 days past due. FICO calculates their payment percentage based on accounts vs accounts. VantageScore calculates their payment percentage based on payments vs payments. Let's say you have a 10-year credit history with 10 accounts. 9 of them you never missed a payment, but 1 of them you did. Your FICO score in that area is 90%. But with Vantage, 10 accounts with 10 years of History = 120 payments. 12 payments per year x 10 accounts.= 120. So you just had ONE payment that was 30 days past due. That's 1/120 = 99.27% on time payment record. And that's a truer reflection of your reliability.

Vantage Score seem like it work against the people. Probably so they can sell your information to companies for sub prime credit cards and loans

wow u explained that very well

this crap is out of control really.

Awesome video Finance 101. Watch & Learn 😊. I just subscribed Bravo

How do you determine which bank, uses which credit reporting agency?

Ok my head is starting to fly off my shoulders

Yes , I got different credit score from 3 credit bureaus.

Why my vantage score is 588 and in some of my credit cards im in the high 6oo

My brain just exploded 😤🤯

I have zero balance on all my credit cards nothing new was added to my file but my fico score dropped. What did o do wrong?

Very helpful video!

We should all get together and make them fix this stupid shit.

Thank you for such an informative video. I was under the impression Discover's score was from Transunion. Which credit card, if any, uses the Vantage model?

Thanks!

Different folks , different strokes ...or different scores?

Can you do a video on Experian credit boost? How it works, and is it effective and is it worth it.

Very educational.

This is why cash is king! Credit is too complicated smh

This is RIDICULOUS really just to much just use one

Hi, what are the company's or apps that give you a free FICO score besides Discover?

Which lenders use vantage score?

FICO score of 675 through experion, but vantage score of 769 through Credit Karma what gives? Please help explain this

Great video

Some sort of scam comes to mind.

What a great understanding of these different reports, thank you. Now, I have a question for you, with the free credit services now available i.e. Credit Karma, Citi, Discovery, etc. will those create an inquiry on my report? if yes, what's the difference between a Soft hit vs. a Hard hit. thx

Thanks. Now I know.

I love the 60’s & 70’s. These Credit Bureaus are bad for the people. I walked to a car dealer and 3 hours later, I drove out of the car dealership with a new car.

Vantage score is bs... my fico score us 751 and my vantage is 651 ( poor ) total bs considering 24 years of history and not a single late payment, barely any of my mortgage left the only down side is I use 32% my credit limit ( rotate 0% apr too make money using that money in the market ) could pay off my entire debt with a fraction of my trading account... vantage is bs prob a way to just milk more money out of people

It is all a scam to get more interest out of you.

Sooo after I receive a score where are lines drawn as to know poor, good, eh or ...

Omg this will be so hard in low income ppl to buy house ... so sad I want to cry... my friend has money but low credit ..i have low credit and dowm payment money... we bouth stock in fico numbers 😒 i give up ... sadly if you low low income goverment help u more ... pay u a house to live with programs like sec 8... but if you work in health industry anf you a covid 19 Hero ... lmfao you seriales to get a home loan...what a joke

They are different so credit bureaus can charge people to see their “real score”. We are supposed to get one free annual credit report. Yet, its not REALLY your REAL score isnt it?? They want to charge people for myfico.🙄🙄🙄🙄

thank you .

my FICO is UNSCORABLE

If I dispute something from vantage score and it comes of will it comes off on my fico score?

👍🏽👍🏽Good video 👌🏾

According to my FICO report on Discover they use TransUnion not Experian -- "Your FICO® Score 8 based on TransUnion® data:"

Can tax debt be on your credit report?

How many years do the credit bureaus change our credit score? I have so many date of residence reported in my TRANS UNION , and wrong name. Can I dispute it online? I’m disabled and can’t go to Post Office to mail disputes letters. Go to made copies

You need to make 90k a year to buy a house in San Jose.

All these are scams to keep redlining. Just pay your bills on time on credit cards save save for big ticket items to pay cash. Debt free life is the goal.

The whole fico credit score system is an absolute joke! It's a very confusing misleading system that was intentionally set-up and designed that way in order for certain lenders to approve or not approve whomever they want whenever they feel like it no matter if that person has a bad credit history or a good one. It gives you a zillion different analysis of a zillion different scores from a zillion different fico versions. Don't tell me my credit score is high only for me to go to a retailer looking stupid after being told something different because they use a totally different version or credit scoring system. This is also 1 of the main reasons why you'll always see foreign immigrants coming from other countries with no prior education or business experience but still being approved for business loans car loans school loans mortgage/property loans etc., in very little time. It's why you'll always see foreign owned businesses & no black own businesses in predominantly black neighborhoods across the country.

This shit makes my head hurt.

Thank you🙏🏽

PHEWW!!🤦‍♀️