Will checking your credit score lower it? This is a common question that often puzzles individuals who are trying to maintain a good credit standing. The answer to this question is not straightforward and depends on various factors. In this article, we will explore the relationship between checking your credit score and its potential impact on your creditworthiness.
Understanding Credit Scores
Credit scores are numerical representations of an individual’s creditworthiness. They are used by lenders to assess the risk of lending money to a borrower. Credit scores are calculated based on various factors, including payment history, debt levels, credit mix, and length of credit history. The most widely used credit scoring models are FICO and VantageScore.
Hard Inquiries vs. Soft Inquiries
When you check your credit score, it is important to differentiate between hard inquiries and soft inquiries. Hard inquiries occur when a lender checks your credit score to evaluate your creditworthiness for a loan or credit card application. Soft inquiries, on the other hand, occur when you check your own credit score or when a company checks your credit score for a pre-approved offer.
Checking Your Credit Score
Now, let’s address the main question: Will checking your credit score lower it? The answer is no. Checking your own credit score through a soft inquiry will not lower your credit score. Soft inquiries are not factored into your credit score calculation, so they have no impact on your creditworthiness.
Hard Inquiries and Credit Scores
However, if a lender checks your credit score through a hard inquiry, it may have a slight negative impact on your credit score. Each hard inquiry can cause a temporary drop in your credit score, typically by a few points. This is because hard inquiries are seen as a potential risk factor, as they may indicate that you are applying for multiple lines of credit simultaneously.
Frequency of Credit Score Checks
It is important to note that the frequency of credit score checks can also play a role in the impact on your credit score. Multiple hard inquiries within a short period of time can be more detrimental to your credit score than fewer inquiries over a longer period. This is because lenders may view multiple inquiries as a sign of financial distress or an increased desire for credit.
Conclusion
In conclusion, checking your credit score through a soft inquiry will not lower it. However, hard inquiries can cause a temporary drop in your credit score. To minimize the impact on your credit score, it is advisable to space out your credit applications and limit the number of hard inquiries you have. Additionally, regularly monitoring your credit score can help you stay informed about your creditworthiness and take proactive steps to maintain a good credit standing.
