Experian reports that credit cards serve as the go-to payment method for nearly 200 million consumers. With most credit card users possessing more than one card, the total number of credit cards in circulation has neared 569 million by the third quarter of 2023, according to Experian’s data.

The process of acquiring a credit card involves an application, a review of credit reports and credit scores, underwriting, and a final decision by the credit card issuer. Given that there are only two credit scoring brands in the U.S. financial services market, the question arises: do credit card issuers opt for FICO, VantageScore, or a combination of both?

How Credit Card Issuers Utilize Credit Scores

Credit card issuers, like other lending institutions, engage in business with applicants who have sufficiently high credit scores to be deemed reliable for credit.

However, credit card issuers face a unique challenge as their offerings are mostly unsecured, meaning they lack tangible assets like cars or houses to safeguard their credit issuance. This necessitates higher interest rates as a consequence of the risk involved in issuing billions in unsecured credit.

Obtaining a credit card is not overly difficult. A FICO or VantageScore of 700 is not a prerequisite. Certain issuers delve into riskier credit pools to find their clientele, offering more options to consumers with scores of 600 or below, albeit at a higher cost.

Issuers such as American Express do not provide so-called subprime options, meaning if your credit score doesn’t meet their criteria, obtaining a card from American Express or similar issuers might not be possible.

On the other hand, issuers like Capital One and Credit One Bank do offer subprime lending options, affording opportunities even to those with lower or traditionally considered poor credit scores.

The Credit Score Used by Your Card Issuer Might Be Unknown to You

There are things you’re entitled to know and things you’re not; which credit report and scoring brand your future credit card issuer will use falls into the latter category.

In other words, no law mandates credit card issuers to inform applicants which credit report and score (e.g., “XYZ credit report and ABC credit score”) will be pulled upon application. It’s at the issuer’s discretion if they choose to disclose this information.

While you can find out which credit reports your issuer has pulled through credit monitoring services or by spotting new inquiries on your credit reports, there’s no data indicating which credit scoring brand, variant, or model was used at the time of your application. It’s safe to assume it might be FICO, specifically the FICO Bankcard Industry Option score, but you may never know for certain.

Both FICO and VantageScore Are Employed in Credit Card Decisions

Both FICO and VantageScore credit scoring models are widely used. The era of “nobody uses VantageScore, so nobody cares about it” has passed. VantageScore Solutions has commissioned several market adoption studies from 2015 to 2022.

These studies reveal an increase in the usage of VantageScore credit scores, with the annual number of scores pulled in various contexts jumping from 6 billion to 14.5 billion. This figure, 14.5 billion, signifies nearly double the global population in terms of usage.

According to the latest 2022 market adoption study, VantageScore credit scores were used approximately 311 million times to approve or deny credit card applications between March 2021 and February 2022. FICO, to my knowledge, does not commission such market adoption studies, which is understandable given its widespread adoption predating the launch of VantageScore in 2006.

FICO does not disclose credit score usage by industry, but it is reported that 90% of top lenders use FICO scores.

Check Your FICO and VantageScore Credit Scores Before Applying

Here’s some good news: You can access your FICO and VantageScore credit scores for free through various means. Free value-added websites, your bank, Experian, and some credit counseling agencies offer free access to either your FICO or VantageScore credit scores.

The scores will be clearly marked, so you’ll know exactly which one you’re viewing. If you prefer not to rely on the previously mentioned options, you can always estimate your FICO score on the FICO website. Additionally, you can check your credit report anytime at this centralized source for free annual credit reports.