No, checking your credit score does not lower it. When you check your credit score, it’s considered a soft inquiry that won’t affect your credit score.
Experian, TransUnion and Equifax now offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com.
Anytime your credit is checked, an inquiry is noted on your credit report. This inquiry will be categorized as either a soft inquiry or a hard inquiry, depending on who is checking your credit and why. Soft inquiries dont affect your credit scores, but hard inquiries can.
Checking your own credit score is considered a soft inquiry and wont affect your credit scores. Other soft inquiry types don’t have an impact on your credit scores, and there are a few hard inquiry types that could
Here’s what you should know about soft and hard inquiries as well as the benefits of routinely monitoring your credit score.
Hey there, credit-conscious folks! Ever wondered if checking your credit score every day could harm it? Well, fret no more! We’re here to spill the beans on everything you need to know about credit score monitoring and its impact on your precious credit score.
Spoiler alert: Checking your credit score frequently won’t hurt it. In fact, it’s a smart move to keep a close eye on your credit health But before we dive into the nitty-gritty, let’s clear up some common misconceptions
Myth Buster: Checking Your Credit Score Every Day Damages It
False alarm! Checking your credit score, whether daily, weekly, or monthly, has absolutely no negative impact on your credit score This is because these checks are considered soft inquiries, which don’t leave a mark on your credit report
Soft inquiries are like harmless little peeks at your credit score, like a curious squirrel peeking through your window. They’re used by lenders to pre-approve you for credit offers, or by you to monitor your credit health.
The Real Culprit: Hard Inquiries
The real bad boys that can ding your credit score are hard inquiries, which occur when you formally apply for credit, like a loan or credit card. These inquiries stay on your credit report for two years, potentially lowering your score by a few points.
So, How Often Should You Check Your Credit Score?
After dispelling the myth, the question of how frequently to check your credit score still stands. Here’s the lowdown:
- At least once a year: This is the bare minimum recommended by credit bureaus to ensure your credit report is accurate and free of errors.
- Every few months: This is a good frequency for staying on top of your credit health and identifying any potential issues early on.
- Before applying for credit: Checking your score before applying for a loan or credit card can help you understand your chances of approval and potentially negotiate better terms.
Pro Tip: If you intend to apply for several credit cards or loans in a short amount of time, think about obtaining your credit score once and utilizing it as the basis for all of your applications. By doing this, the amount of difficult questions and their possible influence on your score will be reduced.
Benefits of Regularly Checking Your Credit Score
Besides keeping your credit score in check, there are several other benefits to monitoring it regularly:
- Early detection of errors: You can catch any mistakes or fraudulent activity on your credit report before they cause major damage.
- Improved financial decision-making: Knowing your credit score empowers you to make informed financial decisions, like whether to apply for a loan or credit card.
- Increased credit awareness: Monitoring your credit score helps you understand how your financial behavior affects your creditworthiness.
Tools for Credit Score Monitoring
Several free and paid tools can help you monitor your credit score:
- Credit monitoring services: These services provide regular updates on your credit score and report, often with additional features like identity theft protection.
- Credit card statements: Many credit card companies provide free access to your credit score through their online portals.
- Free credit score websites: Several websites offer free credit scores, although they may not be the same score used by lenders.
A Word of Caution: Don’t Obsess Over Your Credit Score
While monitoring your credit score is important, don’t let it become an obsession. Your credit score is just one piece of the financial puzzle. Focus on building a healthy financial lifestyle with responsible credit management and a diverse portfolio of assets.
Recall that while having a high credit score is a useful tool, it doesn’t determine your financial success alone. Thus, monitor your credit score, but try not to let it worry you.
How to Check Your Credit Score
Historically, its been difficult to get access to your credit score for free. But its gotten much easier in the past few years.
For instance, as a benefit, a lot of financial institutions provide their clients with free access to VantageScore® or FICO® Score. If you don’t already have an account with this benefit, Experian offers a free FICO® Score check. A handful of other services offer this benefit as well.
Keep in mind that most lenders use your FICO® Score in credit decisions. Therefore, it’s unlikely that the credit score you’re viewing will match the one that lenders will obtain through a hard credit check. Even with a FICO® Score, various lenders might utilize distinct scores; for example, an industry-specific version might be used for a particular kind of loan. But youll still have a good idea of where your credit stands.
How Often Can You Check Your Credit Score?
It’s a good idea to check your credit score on a regular basis and you can do so as often as you’d like without damaging your credit. Whether you’re applying for a credit card, house loan, auto loan, or something else, it’s generally a good idea to at least check.
By doing this, you can ensure that there are no issues that might make it challenging to be accepted for a new credit account or loan. You can also have time to address anything that might be negatively affecting your credit score by checking at least a few months ahead of time.
Its also a good idea to check your credit report at least once a year. Your credit report contains the actual data that is used to calculate your credit score, whereas your credit score is a numerical representation of your overall credit health.
As you check your credit report, look out for anything you dont recognize. If you find something odd, contact the lender to make sure its legitimate. In certain situations, a lender may operate under a different name and report to the credit bureaus a name you are unfamiliar with; for example, when you apply for a car loan, the dealership might submit your credit application to several lenders.
If you find information you believe is inaccurate or even fraudulent, report it to the credit bureaus.
You can get a free credit report from each of the three credit bureaus weekly through AnnualCreditReport. com. You can also get your Experian credit report online anytime for free.
Does Checking Your Credit Score Lower It?
Does your credit score change every day?
You might be surprised to learn that it’s possible for your credit scores to change daily. It largely depends on when your creditors report to the credit bureaus. The good news is that Credit Karma is now checking for updates to your TransUnion and Equifax credit reports every day.
Does checking your credit score lower it?
If you check your credit score yourself, it doesn’t lower it. But if a lender or credit card issuer does, it might. Either way, you’ll see an “inquiry” on your credit report. It means that someone — you or a lender — pulled your credit. (A credit report is your track record with credit.
How long does a bad credit score stay on your credit report?
Payment history makes up 35% of your FICO® score. Negative information can also stay on your credit report for seven to 10 years. However, if any of the details on your report seem questionable or inaccurate, you can dispute credit errors and ask the credit bureaus to fix those mistakes.
How often should you check your credit report?
It’s also a good idea to check your credit report at least once a year. While your credit score is a numerical snapshot of your overall credit health, your credit report provides the actual information used to calculate your score. As you check your credit report, look out for anything you don’t recognize.