Does checking your credit score lower your credit score? This is a common question that many individuals have when it comes to managing their financial health. The answer to this question is both yes and no, depending on the type of credit score check being performed. In this article, we will explore the different types of credit score checks and how they can impact your credit score.
Firstly, it is important to understand that there are two types of credit score checks: soft inquiries and hard inquiries. A soft inquiry, also known as a soft pull, is when a lender checks your credit score without affecting your credit score. This type of credit score check is often used for pre-approval offers, when you check your own credit score, or when a lender reviews your credit report for marketing purposes. Since soft inquiries do not affect your credit score, checking your own credit score will not lower it.
On the other hand, a hard inquiry, also known as a hard pull, is when a lender checks your credit score to evaluate your creditworthiness for a loan or credit card application. This type of credit score check can temporarily lower your credit score by a few points. However, the impact of a hard inquiry on your credit score is usually minimal and temporary, especially if you have a good credit history.
It is worth noting that multiple hard inquiries within a short period of time can have a more significant impact on your credit score. This is because lenders may view multiple inquiries as a sign of financial stress or desperation, which can negatively affect your creditworthiness. Therefore, it is advisable to space out your credit applications to avoid this issue.
Additionally, it is important to understand that the frequency of checking your own credit score does not have a negative impact on your credit score. As mentioned earlier, soft inquiries do not affect your credit score. Therefore, regularly checking your own credit score can help you monitor your financial health and identify any potential issues before they become a problem.
In conclusion, checking your credit score does not lower your credit score if it is a soft inquiry. However, a hard inquiry can temporarily lower your credit score. It is important to be mindful of the type of credit score check being performed and to space out your credit applications to avoid any negative impact on your credit score. Regularly monitoring your credit score can help you maintain a good credit standing and make informed financial decisions.
