Bank Routing Number
107001481
Bank by Mail/General Mail
PO Box 26458
Kansas City, MO 64196
Deposit Only Mailbox
PO Box 26744
Kansas City, MO 64196
Phone Number
1-877-712-2265
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Understanding your credit score is key to making smart financial decisions. It affects major milestones, like purchasing a home, buying a car, and getting the best credit card perks. Among the different credit scoring models, “VantageScore” ranks as one of the most widely used—second only to the leading model. So, what is a VantageScore? And how are VantageScores calculated? Let’s find out!
A VantageScore is a type of credit score that lenders use to evaluate how likely you are to repay debt. It represents your creditworthiness based on your credit report and other activity.
VantageScore was created in 2006 by the three major credit bureaus—Experian, Equifax, and TransUnion—to offer a more consistent scoring model. Many lenders use VantageScores when deciding to approve applications for loans, credit cards, and more.
All VantageScores are credit scores, but not all credit scores are VantageScores. There are other credit scoring models available, like FICO score. And while Vantage and FICO scores are often lumped together, each is different. They are like Coke vs. Pepsi—similar, but with their own formula and flavor.
Something unique to VantageScores is they update more frequently. This means your score reflects recent changes in your credit activity faster than some other scoring models. Because of this, your score can improve quickly—but it can also fall just as fast with careless management.
Just like FICO, VantageScore is measured on a scale of 300 to 850. The higher your score, the better your credit looks to lenders. However, VantageScore groups the score ranges differently:
A higher VantageScore makes it easier to access better financial opportunities, while a lower score signals to lenders that you aren’t a reliable borrower.
The two main versions of this credit scoring system are VantageScore 3.0 and VantageScore 4.0. While both versions measure the same factors, the weight and importance of each factor is slightly different.
VantageScore 3.0 | VantageScore 4.0 | |
---|---|---|
Payment History | 40% | 41% |
Depth of Credit | 21% | 20% |
Credit Utilization | 20% | 20% |
Balances | 11% | 6% |
Recent Credit | 5% | 11% |
Available Credit | 3% | 2% |
So, what does each scoring factor mean? And how does it impact your Vantage credit score? Here’s a closer look:
Your payment history is your record of meeting deadlines for payments. It shows lenders whether you have been a reliable borrower in repaying what you owe on credit cards and loans. Afterall, they need to know if they will get their money back!
Depth of credit looks at 1) how long your credit accounts have been open; and 2) the variety of credit types you have used—like credit cards, loans, and mortgages. In other scoring models, these two elements separated into “credit history” and “credit mix,” but VantageScore measures them together.
This measures how much of your available credit you are currently using. For example, if you have a $10,000 credit limit and a $3,000 balance, your utilization ratio is 30%.
The balances category looks at the total amount of money you owe across all your credit accounts—both current and delinquent. It shows how much debt you are carrying overall. The impact of balances on your credit score depends on whether the lender pulls from VantageScore 3.0 or 4.0.
This factor tracks new credit activity—like how many new accounts you open and how many recent credit checks (inquiries) you have made. Recent credit helps lenders gauge how actively you are seeking credit. In the FICO scoring model, recent credit is called “new credit.”
Available credit is the amount of credit you have not used by your statement date. It’s the difference between your credit limit and your current balance on revolving accounts like credit cards.
Improving your VantageScore doesn’t happen overnight, but it’s still very important. Afterall, it’s used by lenders to make decisions that impact your financial life. So, if you are wondering where to start, a great choice is applying for a secured credit card! It works like a regular credit card but requires a refundable security deposit, which sets your credit limit. This deposit lowers the lender’s risk, making it easier for you to qualify even if your credit isn’t perfect.
Academy Bank is proud to offer the Credit Builder Secured Credit Card, which is one of the best credit cards for building credit.
Notable Features:
Academy Bank’s Credit Builder Secured Credit Card offers a simple, practical way to start building or rebuilding credit—without jumping through hoops. Take the first step today!
Need help getting started? Use our Credit Assessment Calculator and other tools to better understand your financial situation.
Subject to credit approval. Transaction and Penalty fees apply. Credit Builder Savings Account required. $300-$3,000 opening deposit required. $5 quarterly fee charged to the Credit Builder Savings Account if not enrolled in eStatements. Improved credit score is not guaranteed. Credit score is determined by credit reporting agencies based on multiple factors, but satisfactory performance on a credit card product can improve your credit score. Default on a credit card, including missed or late payments can damage your credit score. Once added, funds cannot be withdrawn from the Credit Builder Savings Account and the Credit Builder Credit Card without closing the savings account and the credit card.