Regularly checking your credit reports and credit scores is a good way to ensure information is accurate. But can checking your credit hurt your credit scores? [Duration: 00:54].
A lot of people are scared to ask for a copy of their credit report or check their credit score because they think it will hurt their score.
Good news: Credit scores arent impacted by checking your own credit reports or credit scores. In fact, regularly checking your credit reports and credit scores is an important way to ensure your personal and account information is correct, and may help detect signs of potential identity theft.
Your credit score is one of the most important numbers in your financial life. It determines whether you can get approved for credit cards, loans, mortgages, and other lines of credit It also influences the interest rates and terms you’ll receive. So it’s understandable why you’d want to monitor it closely But is checking your credit score daily helpful or harmful?
How Credit Scores Work
Before we talk about what happens when you check your credit score a lot, let’s go over some basic credit score information.
Your credit score is a three-digit number between 300 and 850 that tells lenders how creditworthy you are. The FICO Score is the most common way to rate credit. FICO Scores factor in five main categories:
- Payment history (35% weighting)
- Credit utilization (30%)
- Length of credit history (15%)
- Credit mix (10%)
- New credit inquiries (10%)
Higher scores indicate better credit health. Most lenders consider scores above 700 to be good and above 760 to be excellent.
Your credit score may go down a little every time you apply for new credit because of the inquiry. Your score is also changed when things on your credit report change, like when you open a new account and pay a balance or do something else.
You can access your credit reports for free weekly and your FICO Score from most banks and credit cards. Monitoring services also provide scores and reports.
Checking Your Own Score Doesn’t Hurt It
The good news is that it won’t hurt your credit score to check it. It’s called a “soft inquiry” when you check your own credit score; lenders can’t see it and it doesn’t affect your score.
Hard inquiries, when a lender checks your score to process a credit application, do slightly ding your score. But soft inquiries for monitoring purposes don’t. You can check your credit score every day if you want without hurting it whatsoever.
How Often Should You Check Your Credit Score?
Checking your credit score daily may seem appealing to stay on top of every minor change. But in most cases, it’s overkill.
Here are some recommended best practices on score check frequency:
-
At least once per year: Review your full credit reports annually to check for errors.
-
Every few months: Check your score more often to monitor meaningful trends.
-
Before major applications: Verify your score when applying for a mortgage, auto loan, etc.
-
After major financial events: Check if opening a new credit card or other activity impacted your score.
-
If identity theft concerns arise: Monitor closely for unauthorized changes.
Unless you’re going through a major lending process like a mortgage, checking weekly or monthly is sufficient. Daily checks typically just reveal minor fluctuations that aren’t very meaningful.
Pros of Checking Your Credit Score Frequently
Monitoring your credit score regularly does have some potential benefits:
-
Catching errors early: Reviewing your reports frequently makes it easier to spot any incorrect or fraudulent information that could be damaging your score. You can dispute errors with the credit bureaus.
-
Noticing trends: Checking your score often will illustrate the impacts certain behaviors have over time, like reducing balances or opening new accounts. This helps inform better financial habits.
-
Peace of mind: Some borrowers simply feel better being able to access their latest score at any time for reassurance. Monitoring gives them confidence in their credit standing.
Cons of Obsessive Credit Score Checking
On the other hand, some drawbacks can come with over-monitoring your score:
-
Unnecessarily stressing: For people prone to anxiety, checking daily can stir unnecessary stress about minor variations that aren’t meaningful. This distraction can be counterproductive.
-
Loss of context: The score alone lacks the context provided in full credit reports to explain why it’s changing. The score isn’t always the full picture.
-
Obsession: Just like with scales, constantly weighing your credit score risks unhealthily obsession over a number and losing sight of real financial priorities.
-
False security: A high score one day provides a false sense of security if underlying bad habits exist that haven’t impacted the score yet but will eventually, like late payments.
-
Subscription costs: Some monitoring services have monthly fees that may not provide enough value to justify the cost if you check too obsessively.
For most people, keeping an eye on your credit score monthly or quarterly strikes the right balance of staying informed without going overboard. But everyone’s comfort level differs, so checking as often as daily is fine as long as it’s not causing stress.
How to Check Credit Scores
Here are some top options for accessing credit scores:
-
Credit cards: Many issuers like Citi and Chase provide free FICO Scores to cardholders.
-
Banks: Your bank may offer free scores through online banking even without a credit card.
-
Free reports annually: You can order your free reports including scores at www.annualcreditreport.com.
-
Credit monitoring services: Paid services like Experian and Credit Karma provide access to VantageScores whenever you want.
-
Lenders: Mortgage and auto lenders often provide free score checks as a perk even before applying.
Your credit score is an important snapshot of your financial health. Monitoring it helps you make smart money moves and catch any problems early. Just don’t let obsession with credit scores distract you from building healthy financial habits. Checking your score every few months is recommended, but daily is okay too if it brings you peace of mind without stress.
Getting your credit reports
You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting www. annualcreditreport. com. You can also create a myEquifax account to get six free Equifax credit reports each year. In addition, you can click “Get my free credit score” on your myEquifax dashboard to enroll in Equifax Core Credit™ for a free monthly Equifax credit report and a free monthly VantageScore® 3. 0 credit score, based on Equifax data. A VantageScore is one of many types of credit scores.
When checking your credit report, it’s important to make sure all your personal information, such as your name and addresses, is accurate and there isn’t information you don’t recognize. In addition, make sure your account information is accurate and complete. Check to see if the account balances, credit limits, and payment history are correct. Is there any account information there that you don’t think belongs to you?
If you see account information that you believe is inaccurate or incomplete on your credit reports, contact the lending company directly. You can also file a dispute with the credit bureau providing the credit report. At Equifax, you can create a myEquifax account to file a dispute. Visit our dispute page to learn other ways you can submit a dispute.
Impact of soft and hard inquiries on credit scores
When you request a copy of your credit report or check credit scores, that’s known as a “soft” inquiry. There are also “soft inquiries” from companies that send you credit card offers and reviews of your existing loans by companies that you already have an account with. Soft inquiries do not affect credit scores and are not visible to potential lenders that may review your credit reports. They are visible to you and will stay on your credit reports for 12 to 24 months, depending on the type.
The other type of inquiry is a “hard” inquiry. These happen after you’ve applied for a loan or credit card and the lender looks at your credit history.
Hard inquiries do affect credit scores, but if you’re making a large purchase – such as buying a house or securing a mortgage – and shopping around for the most competitive rates, multiple hard inquiries are generally treated as one hard inquiry for a given period of time, typically 14 to 45 days. That allows you ample time to check different lenders and find the best loan terms for you. This multiple-hard inquiry exception generally does not apply to credit cards. Find out more information on hard inquiries and your credit.
WHEN DO CREDIT SCORES GET UPDATED?
FAQ
Does your credit score change every day?
You might be surprised to learn that it’s possible for your credit scores to change daily. It largely depends on when your creditors report to the credit bureaus. The good news is that Credit Karma is now checking for updates to your TransUnion and Equifax credit reports every day.
Does checking my credit score lower my score?
Does Checking My Credit Lower My Score? No, checking your credit score does not lower it. When you check your credit score, it’s considered a soft inquiry that won’t affect your credit score. Anytime your credit is checked, an inquiry is noted on your credit report.
How often should you check your credit report?
It’s also a good idea to check your credit report at least once a year. While your credit score is a numerical snapshot of your overall credit health, your credit report provides the actual information used to calculate your score. As you check your credit report, look out for anything you don’t recognize.
Does a credit check affect your credit score?
When you check your credit score, it’s considered a soft inquiry that won’t affect your credit score. Anytime your credit is checked, an inquiry is noted on your credit report. Depending on who is checking your credit and why it’s being checked, this inquiry will be classified as either a soft inquiry or hard inquiry.
Should you check your credit score regularly?
Checking your credit score regularly is essential if you’re working on building or rebuilding your credit history. As you look for opportunities to improve your credit, here are some tips to help you get started: Get caught up on overdue payments, if applicable, and pay all of your debts on time every month going forward.
How often does Credit Karma check my credit reports?
Your credit scores can change frequently. That’s why Credit Karma is now checking your credit reports daily for any changes from Equifax and TransUnion. Credit Karma provides your VantageScore 3. 0® credit scores from both Equifax and TransUnion.
What happens if I check my credit score frequently?
It’s possible for lenders to hard-check your score, but checking your own score has no effect on it. In fact, keeping an eye on your finances on a regular basis can help you stay in charge and fix things when you need to.
Can you check your credit score too often?
Often no points are subtracted. However, multiple hard inquiries can deplete your score by as much as 10 points each time they happen. Jan 6, 2025.
How rare is an 800 credit score?
What it means to have a credit score of 800. A credit score of 800 means you have an exceptional credit score, according to Experian. According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
What happens every time you check your credit score?
Checking your own credit score is considered a soft inquiry and won’t affect your credit scores.Mar 8, 2024