You’ve probably heard this before – don’t open too many credit cards all at once because it can negatively impact your credit score. And in case you’re wondering why, it’s because every time you apply for a new credit card, the lender does a hard credit inquiry to check your credit worthiness.
With FICO and VantageScore your score will be negatively impacted if you have too many credit inquiries within a short timeframe. But they differ in how they count certain inquiries, like when you’re shopping around for an auto loan and home mortgage. In other words, each individual inquiry from multiple lenders is not counted individually. For instance, for a home mortgage, with VantageScore all those inquires count the same for only 14 days, compared with 45 days for FICO.
And if you’re renting, did you know that solutions like RentReporters can help you build and improve your score? RentReporters can help you by reporting you on time rent payments to TransUnion. For more information on how we can help you, visit here.