Does checking credit score hurt? This is a common question that many people have when they consider applying for a loan, credit card, or any other financial service that requires a credit check. The answer to this question is not straightforward and depends on various factors. In this article, we will explore the impact of checking your credit score and how it can affect your financial future.
Checking your credit score is generally considered a soft inquiry, which means it does not negatively impact your credit score. Soft inquiries occur when a lender or financial institution checks your credit score to see if you qualify for a loan or credit card. Since this is not a request for credit, it does not affect your credit utilization or payment history, which are the two main factors that determine your credit score.
However, if you check your credit score frequently, especially within a short period, it could be considered a hard inquiry. Hard inquiries occur when you apply for credit, and they can temporarily lower your credit score. Multiple hard inquiries within a short period can make lenders think that you are credit-hungry and may increase the risk of defaulting on your loans.
It is important to understand the difference between soft and hard inquiries to avoid unnecessary damage to your credit score. Here are some tips to help you keep your credit score intact:
1. Check your credit score regularly: Since checking your credit score does not hurt, it is a good idea to monitor your credit score regularly. This can help you identify any errors or discrepancies in your credit report and take corrective actions.
2. Limit the number of hard inquiries: If you are planning to apply for multiple loans or credit cards within a short period, it is best to space them out. This will minimize the impact of hard inquiries on your credit score.
3. Avoid unnecessary credit checks: Before applying for a loan or credit card, ensure that you have a strong credit history and score. This will increase your chances of getting approved without the need for multiple credit checks.
4. Review your credit report: Regularly reviewing your credit report can help you identify any errors or fraudulent activities. If you find any discrepancies, report them to the credit bureaus immediately.
In conclusion, checking your credit score does not hurt, but frequent hard inquiries can negatively impact your credit score. By understanding the difference between soft and hard inquiries and following the tips mentioned above, you can keep your credit score healthy and improve your financial standing.
