Does checking your credit score affect your credit? This is a common question among many individuals who are trying to understand the intricacies of credit scoring. The answer to this question is not straightforward and can vary depending on the type of credit check being performed. In this article, we will explore the different types of credit checks and their impact on your credit score.
Soft inquiries, also known as soft pulls, do not affect your credit score. These inquiries are typically performed when you check your own credit score, apply for a pre-approved credit card, or when a lender checks your credit score before offering you a loan. Soft inquiries are considered a part of your credit report, but they do not have any negative impact on your creditworthiness.
On the other hand, hard inquiries, also known as hard pulls, can affect your credit score. These inquiries occur when you apply for a new credit card, a mortgage, or any other type of loan. Each hard inquiry can cause a small drop in your credit score, usually around 5 to 10 points. However, the impact of a hard inquiry on your credit score is generally temporary and can be outweighed by the positive effects of obtaining a new line of credit, such as a mortgage or a car loan.
It’s important to note that the frequency of hard inquiries can have a more significant impact on your credit score. Multiple hard inquiries within a short period of time can be seen as a sign of financial stress or desperation, which can negatively affect your creditworthiness. Therefore, it’s advisable to space out your credit applications and avoid applying for multiple new lines of credit in a short timeframe.
Additionally, it’s worth mentioning that the impact of a hard inquiry on your credit score can vary depending on your overall credit history. If you have a strong credit history with a good credit score, the impact of a hard inquiry may be minimal. However, if you have a weaker credit history, a hard inquiry can have a more significant impact on your credit score.
In conclusion, checking your credit score does not affect your credit, but applying for new lines of credit can. It’s important to understand the difference between soft and hard inquiries and to manage your credit applications wisely. By being proactive in monitoring your credit score and making informed decisions about credit, you can maintain a healthy credit profile and improve your chances of obtaining favorable credit terms in the future.
