Does checking your credit score lower your credit score? This is a common question among many individuals who are trying to manage their finances and improve their creditworthiness. The answer to this question is not straightforward and depends on several factors. In this article, we will explore the relationship between checking your credit score and its potential impact on your creditworthiness.
Firstly, it is important to understand that there are two types of credit inquiries: hard inquiries and soft inquiries. Hard inquiries occur when you apply for a new credit card, loan, or mortgage, and the lender checks your credit score. Soft inquiries, on the other hand, occur when you check your own credit score or when a lender checks your credit score for promotional purposes, such as offering you a pre-approved credit card.
Now, let’s address the main question: does checking your credit score lower your credit score? The answer is no, checking your credit score does not lower your credit score. Soft inquiries do not affect your credit score at all. This means that you can check your credit score as often as you want without any negative impact on your creditworthiness.
However, hard inquiries can have a temporary impact on your credit score. When you apply for new credit, the lender will perform a hard inquiry, which can cause a small drop in your credit score. This drop is usually minimal and temporary, and your credit score will typically recover within a few months. It’s important to note that multiple hard inquiries within a short period of time can have a more significant impact on your credit score, as it may raise concerns about your financial stability.
So, if you are planning to check your credit score, it is best to do so through a soft inquiry. You can use websites like Credit Karma or AnnualCreditReport.com to access your credit score for free. Additionally, some credit card issuers offer their cardholders free access to their credit score on a monthly basis.
In conclusion, checking your credit score does not lower your credit score, but applying for new credit can cause a temporary drop. It is important to manage your credit wisely and avoid applying for multiple new lines of credit within a short period of time. By staying informed about your credit score and taking steps to improve it, you can maintain a good creditworthiness and secure better financial opportunities in the future.
