Which Credit Score Is Most Important?

Why There Isn't a Single, Most Important Credit Score

There are several reasons why one of your scores isn't necessarily better or more important than the others.

Lenders Can Choose Which Score(s) to Use

One of the main reasons not to overfocus on a single score is that you generally won't know which score a lender will use to make a decision. Many lenders use a credit score from FICO or VantageScore^®, but both of those companies offer multiple types of scores.

Even if you recently applied for credit from the lender and got a letter with the score type they used, the lender might use different scores depending on when you apply, where you apply from and what type of product you're applying for.

Sometimes, lenders even use multiple scores when reviewing credit applications. Larger lenders may also feed scores from the FICO and VantageScore credit scoring models into their own custom-built scoring models.

Learn more: Credit Myths Debunked

Your Scores Can Vary Depending on Your Credit Reports

Similar to how you might not know which credit score a lender will use, you also might not know which credit report it will request. This is important because the same scoring model can calculate different scores depending on which of your three credit reports it's analyzing.

For example, you might have three FICO^® Scores^Θ 8 based on your Experian, TransUnion and Equifax credit reports. It's common for this to happen because your credit reports at all three bureaus are rarely identical.

The Same Number Can Mean Different Things

Most FICO^® Scores and VantageScore credit scores range from 300 to 850, with higher scores indicating greater creditworthiness. However, the same score can indicate different risk levels depending on the scoring model.

For example, FICO^® Scores of 670 or higher are generally considered "good," but you may need a VantageScore credit score of 661 or higher to be in the "prime" range. As a result, instead of saying you have a good credit score, you might specify that one of your credit scores is in the good range.

Learn more: What Is a Good Credit Score?

A "Good" Score Depends on the Lender

The general ranges for what's a poor, good or excellent score are good rules of thumb, but lenders can also set their own standards for what they consider to be a good credit score. So, even if you have a high enough score to qualify for a new credit card or loan with one company, it might not be high enough to qualify with every company.

Most Important Credit Scores by Type

You can contact a lender and ask if it will tell you which credit scoring model and credit report it will likely use when you apply. However, the representative doesn't have to tell you, and if automated systems are making the decisions, they might honestly not be able to find out.

You also might want to keep an eye on a few of your scores to have an idea of where you stand and see how different actions impact your scores. Here's a list of the scores you might encounter in various settings.

Most Important Credit Score for Monitoring Your Credit

FICO^® Score 8. The FICO^® Score 8 is the most widely used version of the FICO^® Score. You can check your FICO^® Score 8 for free from Experian and other sources, so it's easy to track. While there's no guarantee the score you see when you check yourself will be identical to the one a given lender will see, FICO^® Score 8 will give you a good idea of how lenders will view your credit profile.

Learn more: Why Is My Credit Score Different When Lenders Check My Credit?

Most Important Credit Score for a Credit Card Application

FICO Bankcard Scores and VantageScore credit scores. FICO creates industry-specific versions of its credit scores for card issuers, including the FICO Bankcard Scores 8, 9 and 10. The scores range from 250 to 900, and they may be popular with some card issuers. Many credit card issuers also use a VantageScore credit score, such as the VantageScore 3.0 or 4.0.

Most Important Credit Score for an Auto Loan

FICO Auto Scores and VantageScore credit scores. FICO also makes FICO Auto Scores for auto financing. Similar to the bankcard scores, they range from 250 to 900, and there are several versions available to lenders. Some auto lenders alternatively or additionally use a VantageScore credit score when reviewing auto loan and lease applications.

Learn more: Which Credit Score Is Used for Car Loans?

Most Important Credit Score for a Mortgage

FICO^® Scores 2, 4, 5 and 10T, and VantageScore 4.0. For many years, mortgage lenders have relied on the "classic" FICO^® Scores:

• FICO^® Score 2 is the classic FICO^® Score version available from Experian.
• FICO^® Score 4 is the version of the classic FICO^® Score offered by TransUnion.
• FICO^® Score 5 is the Equifax version of the classic FICO^® Score.

Many mortgage lenders still use these scores today. They can also use your VantageScore 4.0 scores from the three bureaus, and may be able to use a newer FICO^® Score 10T soon. Within the next few years, mortgage lenders might move away from the classic scores entirely.

Learn more: What Credit Score Do I Need to Buy a House?

How to Improve Your Credit Scores

Uncertainty about which score will be used may seem nerve-wracking, but the good news is that all scoring models tend to respond favorably to the same types of actions. If you want to improve your scores, you could:

• Pay your bills on time, especially loan and credit card payments. Your payment history is the most important scoring factor. Making loan and credit card payments on time can help your scores, while missing a payment by 30 days or more can lower them.
• Keep credit card balances low. Credit scoring models calculate the percentage of your credit limits that you're currently using, based on the balances and limits in your credit report. Having a high credit utilization rate can hurt your scores, even if you pay your bill in full each month. Try to keep each card's balance as low as possible by using it for small purchases or making early payments.
• Bide your time. Credit scoring models reward borrowers with long track records of responsible credit management. In other words, if you keep up with your payments and mind your balances, your credit scores will tend to improve over time. The ages of your open credit accounts, which serve as a measure of experience, can also impact your scores.
• Use different types of credit. Scoring models tend to reward you for actively managing different types of credit accounts at the same time. Having a mix of installment loans with fixed payments (student loans, mortgages, auto loans and the like) and revolving credit (accounts like credit cards that allow charging against a set borrowing limit) will tend to increase your scores.
• Apply for new credit sparingly. Recently opened credit accounts and the number of hard inquiries from applications can hurt your credit scores. Although the impact is often minor and temporary, you may want to limit how often you apply for credit to increase your chances of getting a good offer when you truly need it.

Frequently Asked Questions

The Bottom Line

While no single credit score can claim the title of "most important," credit scores in general can be very important to your financial future. Taking steps to improve your credit and tracking your credit scores for free are great ways to make sure you'll be prepared for an emergency or opportunity in the future.