FICO vs VantageScore: Which One Matters?
Credit Karma shows VantageScore. Lenders use FICO. Here's why they differ by 20-50+ points and which to focus on.
You check Credit Karma and see 720. You apply for a car loan and they say you're 680. What happened?
Credit Karma shows VantageScore. Most lenders use FICO. They calculate scores differently, leading to significant differences. Here's what you need to know.
The Quick Answer
📋 Bottom Line
- • FICO 8 is used for ~90% of lending decisions
- • VantageScore is what most free apps show
- • VantageScore is often higher than FICO
- • For mortgages, lenders use older FICO versions (2, 4, 5)
Who Uses What
| Loan Type | Score Used |
|---|---|
| Mortgages (Fannie/Freddie) | FICO 2, 4, 5 (old versions) |
| Auto loans | FICO Auto Score 2, 8, or 9 |
| Credit cards | FICO 8 (most common) |
| Personal loans | FICO 8 or newer |
| Apartment rentals | VantageScore (often) or FICO |
| Credit Karma | VantageScore 3.0 |
Key Differences
| Factor | FICO 8 | VantageScore 3.0/4.0 |
|---|---|---|
| Paid collections | Still hurts score | Ignored |
| Medical debt | Weighted same as other debt | Weighted less |
| Min. history needed | 6 months | 1 month |
| Rent payments | Not included | Can be included |
| Trended data | No (FICO 10T does) | Yes (4.0) |
Why VantageScore Is Often Higher
Several factors make VantageScore typically more generous:
- Paid collections ignored — FICO 8 still penalizes them
- Medical debt treated leniently — Less impact than FICO
- More recent activity weighted — Recovers faster from negatives
- Thinner files can score — People with little history may have VantageScore but no FICO
⚠️ The "Credit Karma Shock"
Many people see a 720 on Credit Karma (VantageScore) and get denied for loans because their FICO is actually 680. Don't assume your VantageScore equals your lending score.
FICO Versions Explained
There isn't just one FICO score — there are at least 28 different versions:
- FICO 8 — Most widely used for credit cards, personal loans
- FICO 9 — Newer, ignores paid collections (adoption growing)
- FICO 10/10T — Latest version, uses trended data
- FICO 2, 4, 5 — "Classic" FICO, required for mortgages
- FICO Auto Score — Specialized for auto loans (250-900 range)
- FICO Bankcard Score — Specialized for credit cards
Where to See Your Actual FICO Score
Free ways to see FICO (not VantageScore):
- Experian.com — Free FICO 8 based on Experian data
- Discover Credit Scorecard — Free FICO 8 (anyone, not just cardholders)
- Bank/credit card apps — Many provide free FICO (AmEx, BoA, Wells Fargo, etc.)
VantageScore sources (what NOT to rely on for lending):
- Credit Karma (TransUnion + Equifax VantageScore)
- Credit Sesame (TransUnion VantageScore)
- Capital One CreditWise
- Chase Credit Journey
For Mortgage Applications
Mortgages are special. Fannie Mae and Freddie Mac require specific older FICO versions:
- Equifax: FICO Score 5
- Experian: FICO Score 2
- TransUnion: FICO Score 4
Lenders pull all three and use the middle score. These older versions are often lower than FICO 8, sometimes by 20-40 points.
Note: FICO 10T and VantageScore 4.0 have been approved for GSE mortgages and are rolling out in 2025, but adoption is gradual.
Which Score Should You Focus On?
Short answer: FICO 8 for most purposes, but track both.
The good news: most things that improve VantageScore also improve FICO:
- On-time payments
- Low utilization
- Avoiding new inquiries
- Building account age
The main exception: paid collections. They stop hurting VantageScore immediately but still impact FICO 8 until they fall off (7 years).
The Bottom Line
- VantageScore (Credit Karma) = Good for tracking trends, but not what lenders see
- FICO 8 = What most lenders actually use
- Mortgage FICO = Even older versions, often lower than FICO 8
- Difference = 20-50+ points is common
Use Credit Karma to monitor for changes and catch errors. But before applying for a loan, check your actual FICO score through Experian or your bank to avoid surprises.