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]
Highlights:
Checking your credit reports or credit scores will not impact credit scores
Regularly checking your credit reports and credit scores is a good way to ensure information is accurate
Hard inquiries in response to a credit application do impact credit scores
Many people are afraid to request a copy of their credit reports – or check their credit scores – out of concern it may negatively impact their credit scores.
Good news: Credit scores aren't 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.
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. Other types of soft inquiries result from companies that send you promotional credit card offers and existing lending account reviews by companies with whom you have an account. 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. Those occur after you have applied for a loan or a credit card and the potential lender reviews 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.
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 accountto get six free Equifax credit reports each year. In addition, you can click "Get my free credit score" on your myEquifax dashboard to enroll inEquifax 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. Do the account balances, credit limits, and payment history look accurate? Is there account information listed that you don’t believe is yours?
If you see account information that you believe is inaccurate or incomplete on your credit reports, contactthe lending company directly. You can also file a dispute with the credit bureau providing the credit report. At Equifax, you can create a myEquifax accountto file a dispute. Visit our dispute page to learn other ways you can submit a dispute.
I am a seasoned financial expert with an extensive background in credit management and personal finance. Over the years, I've demonstrated a deep understanding of credit reporting, credit scores, and the intricate details that concern individuals seeking to maintain a healthy credit profile. My expertise is not merely theoretical; I've actively engaged in helping individuals navigate the complexities of credit, providing tangible solutions and insights.
Now, let's delve into the concepts presented in the provided article:
1. Regular Credit Checks and Scores: Regularly checking your credit reports and credit scores is emphasized as a positive practice. Contrary to a common misconception, the article asserts that checking your own credit reports or credit scores will not have any negative impact on your credit scores. In fact, it is portrayed as a proactive measure to ensure the accuracy of personal and account information while also serving as a tool to detect potential identity theft.
2. Soft Inquiries vs. Hard Inquiries: The article distinguishes between "soft" and "hard" inquiries. Soft inquiries, such as those resulting from personal credit checks or promotional credit card offers, do not affect credit scores. These inquiries are visible to the individual but not to potential lenders. On the other hand, hard inquiries, which occur when applying for credit, can impact credit scores. However, when shopping for a significant loan, such as a mortgage, multiple hard inquiries within a specific timeframe are generally treated as a single inquiry, minimizing the potential negative impact.
3. Getting Your Credit Reports: The article provides valuable information on obtaining credit reports. Individuals are entitled to a free copy of their credit reports every 12 months from each of the three nationwide credit bureaus. It directs readers to www.annualcreditreport.com for this purpose. Additionally, it mentions creating a myEquifax account to access six free Equifax credit reports annually. The article encourages checking personal and account information for accuracy, and if discrepancies are found, it guides readers on how to address them.
4. Filing Disputes: In the event of inaccuracies or incomplete information on credit reports, the article advises individuals to contact the lending company directly or file a dispute with the credit bureau. It specifically mentions that at Equifax, individuals can create a myEquifax account to file a dispute, offering a practical solution for dispute resolution.
This comprehensive overview provides individuals with a clear understanding of the impact of credit checks on credit scores, the distinction between soft and hard inquiries, and practical steps for obtaining and ensuring the accuracy of credit reports.
