If you're new to credit or haven't used your credit accounts in a while, you may not have a FICO credit score, but you may have a VantageScore credit score. The time period, however, generally differs. And while FICO only includes mortgages, vehicle loans and student loan inquiries, VantageScore will do the same for hard inquiries dealing with other types of credit, including credit cards.
One note: All mortgage loan inquiries within about 45 days count as one inquiry, according to the Consumer Financial Protection Bureau. Collection accounts — If your past-due account is sent to a collection agency, it may impact your credit scores from either company. If you are applying for credit, you might consider asking which credit score the lender will use to evaluate your request.
There is no one credit score used by all lenders and creditors, since there are so many credit scoring models. United Kingdom. Michelle Black, Dia Adams. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.
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Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards. One of the bureaus, Experian, even went so far as to stop offering FICO score information to consumers. The most current version is VantageScore 4. You can get your VantageScore when you order a free credit report from annualcreditreport. One way the two main credit score models differ is through their representation of your credit history.
This is based on the method each model uses to pull your credit history. A FICO credit score is determined by a snapshot of all the available credit history data when your score was originally created. A VantageScore focuses more on your credit history and informs lenders of your credit behavior.
Both types of credit scores use a variety of similar factors to generate your credit score. However, the defining difference is how much these factors influence your score. While both scores look at your credit history to examine your credit usages, balances, payment history, and inquiries, each score is influenced differently by each factor.
In order to generate a FICO score, you must have at least six months of credit history with at least one active account.
VantageScore only requires one month of credit history in the past two years. Although both scores are affected by late payments, each model penalizes scores for late payments differently. When you have a credit account that has been sent to collections, both FICO and VantageScore credit scores will be negatively affected. You can also opt to lock your TransUnion report for an added layer of protection. Locking your credit blocks others from viewing your account, which can help prevent a criminal from opening a line of credit in your name.
Skip to main content. Personal Business. By Allstate Identity Protection. Have you ever wondered how your scores are calculated? Here are a few that might impact you: Credit history length requirements VantageScore scores allow you to have a shorter credit history.
Tax liens, medical collections, and penalizations VantageScore 4. How can I keep my credit scores as healthy as possible? The VantageScore and FICO scoring models may be slightly different, but the following smart practices can help keep your credit scores healthy across both systems: Pay your bills on time.
This is the single most important thing you can do to keep your credit scores healthy. Keep balances low. Aim to use less than 30 percent of your available credit at any given time, and less than 10 percent is even better. Limit new accounts. Limit rate shopping to a focused period of time.
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