Your credit score is one of the most important factors that lenders consider when you apply for a loan, credit card, or any other type of credit. Having a good credit score can help you get approved for credit with favorable terms and lower interest rates. Conversely, a low credit score can make it difficult to get approved for credit or lead to higher interest rates and fees.
Given the importance of your credit score, it’s natural to be concerned about how checking your credit score can impact your credit. The good news is that checking your credit score won’t harm your credit, as it is considered a “soft inquiry.” Soft inquiries are typically made by you or a creditor you have an existing relationship with, and they don’t impact your credit score.
However, there are some instances where checking your credit score can hurt your credit score. Here are some examples:
Applying for credit: When you apply for credit, the lender will typically make a “hard inquiry” into your credit history. Hard inquiries can lower your credit score by a few points, although the impact is typically temporary and will disappear within a few months.
Applying for multiple types of credit: If you apply for multiple types of credit within a short period of time, this can also harm your credit score. Lenders may view this as a sign of financial distress or overextension, which can lead to a lower credit score.
Errors on your credit report: If there are errors on your credit report, this can harm your credit score. It’s important to check your credit report regularly to ensure that there are no errors or inaccuracies.
High credit utilization: If you have high credit utilization, this can harm your credit score. Credit utilization is the amount of credit you’re using compared to your credit limit. If you’re using a high percentage of your available credit, this can signal to lenders that you may be overextended and a higher risk.
In summary, checking your credit score won’t harm your credit since it is considered a soft inquiry. However, it’s important to be mindful of other factors that can impact your credit score, such as applying for credit, errors on your credit report, and high credit utilization. By staying on top of these factors, you can help maintain a good credit score and improve your financial health.
