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Understanding the differences between CreditWise and FICO® Score is essential for managing your credit health. While both tools provide insights into your creditworthiness, they use distinct scoring models and data sources.
FICO scores are produced by the Fair Isaac Corporation and are one of the most popular types of credit scores. Capital One offers a service called CreditWise that lets you see your TransUnion® credit report and your VantageScore® 3. 0 credit score.
This article will explore how these scores are calculated, their impact on your financial decisions, and which one lenders prefer.
• CreditWise, offered by Capital One, uses the VantageScore 3. 0 model, while FICO is based on the FICO scoring system, which is widely used by lenders.
• CreditWise provides free credit monitoring and alerts for potential identity theft, while FICO primarily focuses on generating scores for lending decisions.
• Both CreditWise (VantageScore) and FICO scores range from 300 to 850, but the factors and weightings that determine the score can differ between the two models.
• CreditWise is free and available to anyone, even non-Capital One customers, while FICO scores are often accessible through lenders or purchased directly.
• Lenders predominantly use FICO scores when making lending decisions, whereas CreditWise is more for consumer education and credit health tracking.
Is CreditWise an Accurate Credit Score? Getting the Real Scoop
Picking the right credit score monitoring service is important if you want to keep an eye on your money. We’ll compare CreditWise from Capital One to other scoring models like FICO to see if it gives you an accurate credit score. But there are so many to choose from, how do you know which one to trust?
What is CreditWise?
To begin, CreditWise is a free tool from Capital One that lets you check your credit score and keep an eye on it. It provides users with access to their VantageScore 3. 0 credit score, which is based on data from TransUnion.
CreditWise also includes helpful features like
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Credit report monitoring – get alerts for changes to your TransUnion credit report
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Dark web monitoring – alerts if your info is detected on the dark web
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Credit simulator – see how actions may impact your credit score
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SSN tracker – monitor your social security number
Anyone in the US over the age of 18 can use the service, even if they are not a Capital One customer. It uses bank-level encryption to keep your data secure.
How Accurate is VantageScore 3.0?
Now, to the key question – how accurate is the credit score you get from CreditWise?
CreditWise provides your VantageScore 3.0 based on TransUnion data. This is a legitimate credit score developed by the three major credit bureaus – TransUnion, Equifax, and Experian.
VantageScore 3. 0 has a range between 300-850, just like FICO scores. It uses many of the same factors to figure out your score, such as your payment history, how much credit you use, the age of your credit, and the number of recent inquiries.
However, the specific factors and weighting differ somewhat from FICO models. Overall, VantageScore 3.0 is considered reasonably accurate, especially for prime and near-prime borrowers.
But there are a few key drawbacks:
- Only looks at TransUnion data, not all bureaus like FICO
- Weighting and factors differ from FICO calculations
- Not used by lenders like FICO is
For monitoring overall credit health, VantageScore from CreditWise is useful. But it doesn’t give the complete picture that comes with a FICO score.
Why Do FICO Scores Matter?
When it comes to lending decisions, FICO reigns supreme. According to FICO, 90% of top lenders use FICO scores when making decisions about credit.
FICO scores are calculated based on your credit data from all three bureaus – TransUnion, Equifax, and Experian. This comprehensive view means your FICO score considers a wider range of credit information.
Lenders prefer FICO scores because they have decades of data proving FICO is a reliable predictor of credit risk. The FICO algorithm has been honed over 30+ years to forecast borrowing behavior.
That’s why FICO scores typically play a big role in decisions like loan approvals, interest rates, credit limits, and more.
For the most accurate sense of where you stand with lenders, it’s important to check your FICO score in addition to VantageScore from CreditWise.
How to Check Your Scores
Monitoring both your FICO and VantageScore will provide the clearest view of your credit health from both consumer and lender perspectives.
Here are some ways to check your scores:
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CreditWise – sign up to access your free VantageScore 3.0
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Credit cards – many issuers provide free FICO scores for cardholders
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Credit monitoring services – services like Experian and MyFICO provide FICO scores
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Loan pre-approvals – lenders can provide your FICO score used for pre-approval decisions
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Purchase your FICO – buy direct access to your scores at myFICO.com
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Free credit reports – your credit report may include one of your FICO scores
It’s ideal to have regular access to both your FICO and VantageScore to monitor changes over time. Some key times to check are before applying for new credit or loans and after any big credit actions like paying down debt.
Key Takeaways
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CreditWise uses VantageScore 3.0, while FICO scores are the industry standard for lenders.
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Both score types range from 300-850, but factors and weighting differ.
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CreditWise offers free monitoring and alerts, while FICO focuses on credit decisions.
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Lenders rely on your FICO scores for approvals and rates, not your VantageScore.
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Check both your FICO and VantageScore for a complete credit picture.
The Bottom Line
CreditWise provides an accurate VantageScore credit score for free as part of its monitoring service. However, lenders predominantly use your FICO scores for credit decisions. Checking both scores ensures you have a complete view of your credit health.
While CreditWise is useful for tracking trends and potential fraud, your real FICO score holds more weight when applying for loans, credit cards and other financial products. Monitoring services that provide your FICO score can complement CreditWise to provide a more comprehensive perspective.
Knowing both your VantageScore from CreditWise and FICO scores empowers you to make informed financial choices. Your credit scores impact so much of your financial life, so make sure you have the full picture!
How to Access Your FICO Score and CreditWise Report
If you want to know your FICO score specifically, here’s how to check it:
• Check through your bank or credit card issuer: Many financial institutions offer free FICO score access to customers.
• Visit the official FICO website: Purchase your score directly from myFICO.com.
• Use credit monitoring services: You can sign up for credit score monitoring. SoFi’s credit monitoring service allows you to track your credit score and receive weekly updates at no cost.
• Check with credit counseling agencies: Some nonprofit agencies offer free credit score reviews.
• Request a credit report: While not always included, some reports might show your FICO score.
Here’s how you can access your CreditWise report:
• Download the CreditWise app: Available on iOS and Android devices for easy access.
• Visit the CreditWise website: Access the report directly at www.CreditWise.com.
• Sign up through Capital One: CreditWise is free for Capital One customers, but others can also access it.
• Use the Capital One mobile app: Check your credit score and report from the app if you’re a Capital One customer.
• Monitor credit activity regularly: Track changes in your credit score and report updates over time.
There are many companies that produce credit scores, and each credit score uses different information and a different model.
FICO credit scores are produced by the Fair Isaac Corporation, and are one of the most popular types of credit scores. CreditWise is a service provided by Capital One, and provides access to your VantageScore credit score. These two types of credit scores are different, though generally your scores should fall in the same range.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost. See exactly how your money comes and goes at a glance.
Differences Between CreditWise vs. FICO
The primary difference between CreditWise and FICO lies in their scoring models and purpose. CreditWise uses the VantageScore 3.0 model, which analyzes credit data from TransUnion. It’s a free tool that helps consumers monitor their credit health.
On the other hand, FICO scores are the industry standard, used by over 90% of lenders to assess creditworthiness. FICO scores are based on data from all three major credit bureaus: Experian, TransUnion, and Equifax.
While CreditWise is great for tracking trends and identifying fraud, FICO scores play a crucial role in loan approvals and interest rate determinations.
FICO Score vs Credit Score vs Credit Karma (Why Are My Credit Scores So Different?)
FAQ
Is CreditWise accurate for credit score?
CreditWise is a legitimate and free way to keep an eye on your credit score, but you should know that it uses the VantageScore 3 system. 0 model, which may differ from the FICO score that many lenders use.
How far off is CreditWise?
Credit Wise from Capital One uses the Vantage credit scoring model, with your TransUnion credit report. Vantage is a perfectly valid scoring model, but it’s not wisely used by lenders. Rather, around 85% to 90% of lenders use some version of FICO.
How rare is a 700 credit score?
A credit score of 700 is not rare, but it’s not exceptionally common either. It’s a good credit score, and about 70% of people in the US have one or higher.
Why is my CreditWise score different than Experian?
CreditWise and Experian credit scores may differ because they use different scoring models and data from different credit bureaus, even if they are both based on the same credit report.