Have you ever heard that checking your credit score can lower it? It’s a common myth that has been circulating for years, but the truth is, checking your credit score won’t hurt your credit at all. In fact, regularly checking your credit score is a responsible financial habit that can help you keep track of your credit health and detect any potential errors.
How a Credit Score Works
To understand why checking your credit score won’t lower it, you first need to know how credit scores work. Your credit score is a numerical representation of your creditworthiness, and it’s based on a variety of factors such as your payment history, credit utilization, length of credit history, and types of credit accounts.
When you apply for credit or a loan, lenders will typically check your credit score to evaluate your risk as a borrower. These inquiries are known as “hard inquiries,” and they can temporarily lower your credit score by a few points. Some credit card companies and lenders will pull “soft inquiries” during the application process, and will likely make this clear on their website or in person.
However, the credit bureaus also allow consumers to check their own credit scores, and these inquiries are known as “soft inquiries.” Soft inquiries have no impact on your credit score and are not visible to lenders or other third parties. So, if you’re checking your credit score yourself, you can rest assured that it won’t have any negative effect on your credit.
In fact, regularly checking your credit score can have a positive impact on your credit health.
Monitoring Your Credit Score
By monitoring your credit score, you can detect any errors or fraudulent activity that could be dragging down your score. You can also keep track of your progress over time and take steps to improve your credit if needed.
To check your credit score, you can use a free credit monitoring service or obtain a free credit report from each of the three major credit bureaus once a year. It’s important to review your credit report regularly to ensure that all the information is accurate and up-to-date.
In conclusion, checking your credit score won’t lower it. In fact, it’s a responsible financial habit that can help you maintain good credit health. So, don’t let the myth of credit score damage hold you back from checking your credit score regularly.
Here are some key takeaways to remember:
- Checking your credit score yourself is a soft inquiry that won’t hurt your credit score.
- Regularly monitoring your credit score can help you detect errors and fraudulent activity.
- You can obtain a free credit report from each of the three major credit bureaus once a year.
We hope you found this article helpful in debunking the myth about checking your credit score. For more tips on managing your finances, be sure to check out our other articles on WiseMoneyLife.com or subscribe to our free weekly newsletter.