Beginners Guide: Understanding How Your Credit Score is Calculated with VantageScore

When you are repairing your credit, one of the important things to understand is how your credit score is calculated. There are two main credit rating systems calculating your score, the Fair Isaac Corporation’s FICO score and the VantageScore. I want to make sure that you understand each of them, so this week, we are discussing the VantageScore.

When I first started working on repairing my credit and raising my credit score, it was because I wanted to buy a home. Let’s just say that my credit score was far from where it needed to be to be approved for a home loan. In full disclosure, my credit score was a 411, nearly as low as it could get. What I didn’t understand, was how my credit score was calculated. And had I understood that, it may not have taken me as long to get my score high enough to obtain my goal.