Does Your Credit Go Down When You Check It?

Checking your credit report is a normal part of life, but you might wonder if it's going to hurt your credit score. Fortunately, the good news is that checking your credit report yourself typically doesn't lower your credit score.

Most credit reporting agencies, like Equifax, Experian, and TransUnion, have a policy of not counting "soft inquiries" against your credit score. Soft inquiries occur when you check your own credit report or when a lender pre-approves you for a loan. This means you can check your credit report as often as you want without worrying about it affecting your score.

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You can request your free credit report at AnnualCreditReport.com, the only website authorized by the federal government. This is a great way to check your credit report and see what's on it.

Checking your credit report regularly can help you identify any unauthorized inquiries or errors that could be affecting your credit score. You can check your credit report through annualcreditreport.com or services like myFICO.

Hard inquiries stay on your credit report for up to two years, but they only affect your FICO Scores for a year. This is good news, as it means that any negative impact on your credit score will be short-term.

You can also use services like CreditWise from Capital One to monitor your credit reports from TransUnion and Experian, two of the three major credit bureaus. CreditWise is free for everyone and won't hurt your credit scores.

Here are some strategies to consider if you're concerned about the impact of credit inquiries on your FICO Scores:

Your credit score is a complex number that's influenced by many factors. A single hard credit check can take less than five points off your FICO score, but it's not the only thing that affects your score.

Credit inquiries have a small impact on your FICO score, but they can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk.

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In fact, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports.

But credit inquiries are just one of many things that can affect your credit score. Collections, foreclosures, and bankruptcies are obvious derogatory marks on your credit reports that can hurt your scores.

Here's a breakdown of the FICO system and how much each factor affects your credit scores:

Your payment history, credit utilization ratio, credit history, new credit, and credit mix all play a significant role in determining your credit score. The Consumer Financial Protection Bureau recommends keeping your credit utilization ratio at or below 30%.

A hard credit check can influence your credit score, especially if you have few accounts or a short credit history. But it's not the only thing that affects your score.

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Soft and hard inquiries can impact your credit score, but in different ways. Hard inquiries can temporarily lower your credit score by as much as 10 points, but this drop will likely be short-term.

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Only hard inquiries affect your credit score, while soft inquiries do not. This is because soft inquiries are not tied to lending and are typically done by companies other than lenders.

Checking your credit report regularly through a service like myFICO will not affect your score, as you're getting a soft score. This is a good way to regularly monitor your credit without hurting your score.

Here's a breakdown of the difference between hard and soft inquiries:

Keep in mind that hard inquiries can stay on your credit report for up to two years, but only affect your credit score for a year. Soft inquiries can also appear on your credit report for up to two years, but do not affect your credit score.

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You can request your free credit report at AnnualCreditReport.com, the only website authorized by the federal government.

Hard inquiries stay on your credit report for up to two years, but they only affect your FICO Scores for a year.

Inquiries are only shown for 12 months on credit reports from myFICO, aligning with the period when FICO Scores consider inquiries.

Checking your credit report won't affect your credit scores, as it's considered a soft inquiry, which doesn't get recorded on your report.

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Hard inquiries can stay on your credit report for up to two years, but they only affect your FICO Scores for a year.

If you're concerned about the impact of credit inquiries on your FICO Scores, consider doing your rate shopping within a focused period, as FICO Scores consider multiple inquiries within a short period (14 to 45 days) as a single inquiry.

Regularly monitoring your credit can help you identify any unauthorized inquiries, dispute them, and fix any gaps in your score. You can check your credit report regularly for free through annualcreditreport.com or services like myFICO.

A credit freeze or lock can prevent lenders from accessing your credit report without your explicit authorization, which can be helpful if you're not actively seeking credit.

Checking your credit report regularly through a service like myFICO will not affect your score, as you're getting a soft score.

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Hard inquiries stay on your credit report for up to two years, but they only affect your FICO Scores for a year.

Rate shopping is like comparing prices for shoes, but instead of looking for the best deal on a pair of shoes, you're shopping for mortgages, auto loans, and credit cards. By comparing interest rates, fees, and terms, you can secure lower interest rates and save money.

However, rate shopping can slightly lower your credit score for a short period because lenders perform a hard inquiry when you apply for a loan. This can lead to a temporary dip in your credit score.

But there's good news - FICO Scores group multiple hard inquiries made within a short time frame (14 to 45 days) into one inquiry. This allows you to compare rates and shop around without hurting your credit score significantly.

For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14-day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45-day span.

If you need a loan, do your rate shopping within a focused period, such as 14 days, and only apply for and open new credit accounts as needed.

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Checking your credit score is a good way to see where your credit stands and uncover any errors or signs of potential fraud and identity theft.

A soft inquiry into your own credit history will not lower your credit score.

Hard inquiries can cause your scores to drop temporarily, so it's essential to be mindful of this when applying for loans or new lines of credit.

Keeping an eye on your credit score can help you know where you stand before making big financial decisions.