FICO

VantageScore is a credit scoring model developed in 2006 by Equifax, Experian, and TransUnion as an alternative to FICO. It uses similar factors to FICO but applies different weightings and incorporates trended data to assess creditworthiness for a broader range of consumers.

A fair credit score, defined as 580-669 in the FICO model and 601-660 in the VantageScore model, is below the U.S. average of 714. Lenders view fair credit as risky, leading to higher interest rates, but improvement is possible by focusing on factors like payment history and credit utilization. FICO and VantageScore differ in weightings and ranges for determining creditworthiness.