Types Of Credit Score In India And Its Major Contribution!

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Understanding your credit score can be hard. And to make things even more confusing, you may have heard that there are different types of credit scores. The types of credit scores are based on your credit history, which is the total amount of debt you have repaid in the past. There are thr

Most credit bureaus produce two important types of credit score models: FICO Score and Vantage Score. The model of scores will depict individuals' financial stability and ability to repay credit.


Now let's look into FICO and VantageScore models in detail.


FICO Score Model

In the first place, Fair Isaac Corporation developed the FICO score model in 1989. A population of 90% of lenders utilizes the FICO score, before offering credit as a deciding factor. On basis of these scoring models, the FICO score is 3 digit number that ranges from 300 to 850. Availing or containing 750 and above is a good credit rating. It helps in getting personal loans at the lowest rates.


Credit Score Table As Per FICO Score Model


Score Range

Credit Ratings

800 to 850


740 to 799

Very Good

670 to 739


580 to 669


300 to 579



How Is Credit Score Calculated By FICO Score Model?



Credit Factors


Payment History


Amount Owed


Length Of Credit History


Credit MIx


New Credit 

VantageScore Model

This model is built and developed, in collaboration with three main credit bureaus, that is Equifax, Experian, and Trans Union. The VantageScore model is curated as an alternative to FICO Score model. The updated or the latest version of this model 3.0 and 4.0 contains the same range of scores as the FICO score 300 to 850. Although, VantageScore and FICO scores both give importance to payment of history; however, VantageScore emphasizes more on factors like credit utilisation ratio, credit balance and many such factors from the history.

Credit Score Table As Per To VantageScore Model 


Score Range

Credit Ratings

781 to 850


661 to 780


601 to 660


500 to 600


300 to 499

Very Poor


Calculation By VantageScore Model Of Credit Score 


Credit Factors

Extremely Influential

Total credit usage, available credit and balance

Highly Influential

Credit mix and experience

Moderately Influential

Payment history

Less Influential

Age of credit history

Less Influential

New accounts


Now you know about the types of credit, thus read furthermore to know key facts that affect credit scores.


Factors That Affect Credit Score


Payment History:

This aspect is one of the most important part, it determines credit scores and accounts( 35% of FICO scores). Also, lenders always make sure to check the past credit history, to assess all the information about the individual to  determine their credit behaviour, ability to repay without defaults and credit worthiness.


Credit Utilisation Ratio:

The credit utilisation ratio shows, how musch an individual has utilised their credit, beyond the limit of their account. Also note that anyone using credit cards beyond their limit will have to face decline in credit scores. Thus maintain credit utilisation ratio and utilise credit ratio up to 30% of your income.


Therefore these are some of the main affects one has to be careful about.


The Bottom Line:

A credit score decides individuals approval or rejection. Thus, be careful to take credit scores out according to their requirement. For example take credit scores from Buddy Score, they provide Experian scores, also its best if an individual is willing to take personal loans. Buddy Loan avils Buddy Score as a added feature in their website and mobile application. Thus avail credit scores from here to check the credit worthiness before applying for personal loans.