When it comes to assessing an individual’s creditworthiness, two of the most commonly used credit scoring models in the United States are VantageScore and FICO Score. While both these scoring models serve the same purpose – to help lenders determine an individual’s credit risk – there are some key differences between them.
One of the main differences between VantageScore and FICO Score is the range within which they assign credit scores. VantageScore ranges from 300 to 850, while FICO Score ranges from 300 to 850 for the base FICO Score and 250 to 900 for the industry-specific FICO Scores. This means that the highest possible score you can achieve with VantageScore is 850, whereas with FICO Score, it varies depending on the type of FICO Score being used.
Another key difference between VantageScore and FICO Score is the way in which they weigh various factors when calculating a credit score. While both scoring models consider factors such as payment history, credit utilization, length of credit history, and credit mix, they may weigh these factors differently. For example, VantageScore places more emphasis on the recent credit history of an individual, while FICO Score considers the overall credit history more heavily.
Additionally, VantageScore and FICO Score may use different algorithms to calculate credit scores, which can lead to variations in scores between the two models. This means that an individual’s credit score may differ depending on whether it was calculated using VantageScore or FICO Score.
One important factor that both VantageScore and FICO Score consider is the presence of hard inquiries on an individual’s credit report. A hard inquiry occurs when a lender requests your credit report in order to make a lending decision, such as when you apply for a credit card or a loan. Having too many hard inquiries on your credit report can negatively impact your credit score.
If you are looking to improve your credit score by deleting hard inquiries, it is important to understand that this process can be challenging. While it is possible to have inaccurate hard inquiries removed from your credit report by disputing them with the credit bureaus, legitimate hard inquiries are much more difficult to remove.
To avoid accumulating too many hard inquiries on your credit report, it is important to be mindful of how often you apply for new credit. Limiting the number of credit applications you submit can help minimize the impact of hard inquiries on your credit score.
In conclusion, while VantageScore and FICO Score are both widely used credit scoring models, there are some key differences between them. Understanding these differences can help you better manage your credit and improve your credit score over time. If you are looking to delete hard inquiries from your credit report, it is important to be aware of the challenges associated with this process and to take steps to minimize the impact of hard inquiries on your credit score.
