Does checking your credit score affect it? This is a question that often comes to mind when individuals are considering whether to check their credit report. The answer is both yes and no, depending on the type of credit check and the frequency of the inquiry.
When you check your own credit score, it is considered a “soft inquiry” and does not typically affect your credit score. Soft inquiries are often used by individuals to monitor their credit health and are not visible to lenders. However, if you frequently check your credit score, it may raise a red flag to lenders, as they might perceive it as a sign of financial distress or a desire to take on new debt.
On the other hand, when a lender checks your credit score, it is considered a “hard inquiry,” which can have a negative impact on your credit score. Hard inquiries occur when you apply for a new credit card, loan, or mortgage. Each hard inquiry can lower your credit score by a few points, although the impact is usually temporary.
It is important to note that the impact of hard inquiries on your credit score is relatively small compared to other factors, such as payment history, credit utilization, and the length of your credit history. However, it is still advisable to limit the number of hard inquiries you have on your credit report, as they can contribute to a lower credit score.
Here are some tips to help you manage your credit score and inquiries:
1. Regularly check your credit score to monitor your credit health and identify any errors or discrepancies.
2. Limit the number of hard inquiries by only applying for credit when necessary.
3. Avoid opening multiple new lines of credit within a short period of time, as this can raise red flags to lenders.
4. Pay your bills on time and keep your credit utilization low to positively impact your credit score.
5. Consider using a credit monitoring service to receive alerts about your credit score and inquiries.
In conclusion, checking your credit score does not directly affect it, but the frequency and type of inquiries can have an impact. By understanding the difference between soft and hard inquiries and managing your credit wisely, you can maintain a healthy credit score and avoid unnecessary damage to your financial standing.
