VantageScores are calculated using different criteria and weighting than Fair Isaac Corporation, or FICO scores, and so a 698 VantageScore is not directly comparable to a FICO score, according to Forbes. FICO does not use an A through F grading system, while a 698 VantageScore is graded as a high "D."
The credit bureaus TransUnion, Equifax and Experian developed VantageScores to compete with FICO credit scores, according to ABC News. VantageScores are based on different criteria and weigh similar criteria differently. The credit bureaus that developed VantageScores believe that their model is more inclusive of people who have only recent credit histories. FICO score calculations also place a higher emphasis on total amounts owed, giving them a 30 percent contribution to scores compared to VantageScores' 9 percent contribution.
The VantageScore grading system is based on how many consumers within a score range have charge-offs compared to those paying on time. As such, a 698 VantageScore with a grade of "D" indicates one charge-off for every five consumers who make payments on time, according to Forbes.
While the majority of financial institutions rely on FICO scores, the number of banks that used VantageScores increased by 24 percent in 2014, as reported by ABC News. The most recent version of the scoring system, VantageScore 3.0, was created using over 900 data points from 45 million credit files from between 2009 and 2012.