Credit Scores

A credit score determines the creditworthiness of individuals and small businesses. It detemines ones ability to pay back debt based on their income, expenses and track record of paying fulfilling bills on time. Creditors refer to credit scores in order to assess laon qualification, interest rates and credit limits. Someone with a high credit score is less likely to miss a payment. 

Credit Score Models

There are two main credit score models, the FICO Score Model or the Vantage Score Model. They function in the same way, however measure different aspects of a lenders finanicial profile.

The FICO Score and Vantage Score are the most commonly used models to determine a credit score as it assess the lenders' current income, current expenses and current debt.

However, depending on the size and complexity of the laon, creditors will prefer to develop their own models or consider other models that take underlying factors into consideration such as the consistency of payment history which gives a borrower a deeper look into the lender's spending behaviour.

FICO Credit Scores

Credit Scores range from 300 to 850 with 300 being poor and 850 being exceptional.


Exceptional = 800 - 850

Very Good = 740 - 799

Good = 670 - 739

Fair = 580 - 669

Poor = 300 - 579


FICO Scores consider these factors and holds importance based on the percentage attached to it in the following order:

Payment history: 35%

Amounts Owed: 30%

Length of Credit History: 15%

Credit Mix: 10%

New Credit: 10%

Vantage Credit Scores

Credit Scores range from 300 to 850 with 300 being very poor and 850 being excellent.


Excellent = 781 - 850

Good = 661 - 780

Fair = 601 - 660

Poor = 500 - 600

Very Poor = 300 - 499


Vanatge Scores consider these factors on how influential they are when determining an individuals credit score:

Total Credit Usage, balance and avaialble credit: Extremely Influential

Credit Mix Experience: Highly Influential

Payment History: Moderately Influential

Age of Credit History: Less Influential

New Accounts Opened: Less Influential