
Credit scores can be confusing. But there are ways you can improve your score. Remember that credit is your most valuable asset. Credit card debt should be avoided. Asking questions will help you to become more informed about credit. This article contains information about VantageScore and FICO.
Hard pull
Applying for a credit card is a big decision. You need to be aware of the possibility that hard pulls could affect your score. Although most lenders and financial institutions won't conduct a specific type of inquiry they can still affect your score. It is important that you understand that hard inquiries only account for a small amount of your overall score. These inquiries are usually made to verify your ability and willingness to pay for a loan or lease.
When you apply for a new credit card, your credit card issuer will run a hard pull. Hard pulls can also be done by private student loan and mortgage lenders. If you are applying to rent a unit, your landlord may conduct a hard check. These lenders want assurances that you will repay any loan and are reliable.
Soft pull
A soft-pull is a credit check without requiring a formal application. In contrast, a hard pull involves a lender obtaining a client's credit report and score. A hard pull is more thorough and gives a lender a better picture of a client's credit history.

In order to compare rates when applying for credit cards, it is sometimes necessary to contact at least six to twelve lenders. Each inquiry that is hard will count as one credit inquiry. It will temporarily affect your credit score, and may be seen in your credit report for up to 2 years. If you have made all your payments on-time, a soft draw should not have any impact on your score.
VantageScore
VantageScore can be an important part of evaluating credit scores. Your score can be determined by five tiers, and your credit habits will affect how they change each month. Your credit score can affect your ability to get credit, including loans and credit cards. You can monitor your score to help you manage your finances, and avoid costly errors.
Your credit report and information about how you pay your bills are what determine your score. Because not all creditors report directly to all three credit reporting agencies (or all three), your score could vary from one provider.
FICO
First, understand that your FICO credit score is determined by the information in your file at one of the main consumer reporting organizations (CRAs). Your file may contain information from lenders as well as collection agencies and court records. But not all lenders report directly to all three CRAs. These cases will result in your FICO score reflecting the Experian information on the "pull-on date"
Fair Isaac Corporation created the FICO credit score, an algorithm that was developed in 1956. It uses advanced maths and analytics to aid businesses in making lending decisions. It is currently one of the most popular credit scores that lenders use. Lenders can request the FICO score of a consumer from any one of the three credit reporting agencies in the United States or other countries.

VantageScore 3.0
VantageScore 4.0 is calculated from information provided by credit bureaus. You may see a slight variation in your score. This could be due both to the method of scoring and the time frame in which they are calculated. However, the main factors that make your credit score unique are the same across all credit scores. American Express might use additional information to determine your credit score.
Experian gives you the opportunity to view your VantageScore3.0 credit score online for free. Alternately you can also pay for credit reporting from major credit agencies such as Equifax or TransUnion.