Does checking your FICO score hurt your credit? This is a common question among many individuals who are keen on maintaining a good credit standing. The answer, however, is not as straightforward as one might think. Understanding the nuances of how checking your FICO score impacts your credit is crucial for making informed decisions about your financial health.
Checking your FICO score does not hurt your credit in the traditional sense. When you request your own credit report or score, it is considered a “soft inquiry” and does not affect your credit score. This is because you are not applying for new credit or seeking a loan, which are the types of inquiries that can negatively impact your credit score.
However, it is important to differentiate between a soft inquiry and a hard inquiry. A hard inquiry occurs when you apply for credit, such as a mortgage, car loan, or credit card. These inquiries can temporarily lower your credit score by a few points, as they may indicate that you are taking on more debt. Since checking your own FICO score is a soft inquiry, it does not have this negative effect.
That being said, it is essential to understand that frequent checking of your FICO score can sometimes be viewed negatively by lenders. They may perceive it as a sign that you are anxious about your credit or that you are planning to apply for new credit soon. While this is not a direct impact on your credit score, it can still affect your chances of being approved for new credit.
Here are some tips to keep in mind when checking your FICO score:
1. Check your score regularly to stay informed about your credit health.
2. Use free resources like annualcreditreport.com to access your credit report and score.
3. Avoid checking your score too frequently, as this may raise red flags with lenders.
4. If you need to check your score frequently, consider using a service that offers free score monitoring.
In conclusion, checking your FICO score does not hurt your credit in the way that applying for new credit does. However, it is essential to use this information responsibly and not overdo it. By staying informed about your credit score and taking steps to maintain a good credit standing, you can ensure that your financial future remains bright.
