Does My Credit Score Go Down If I Check It?

A common question arises when considering your financial standing: does checking your own credit score cause it to drop? The answer often comes as a relief: reviewing your personal credit score will not lead to a negative impact. Understanding the different types of credit inquiries is important to grasp why this is the case.

Understanding Credit Inquiries

Credit inquiries are records indicating when your credit information has been accessed. There are two primary types: soft inquiries and hard inquiries. Understanding their distinction is fundamental to understanding their impact on your credit score.

Soft inquiries occur when your credit information is accessed without you formally applying for new credit. Examples include checking your own credit score through a credit monitoring service, when a lender pre-screens you for a credit offer, or for identity verification purposes. These inquiries do not affect your credit score.

In contrast, hard inquiries happen when you formally apply for new credit, such as a loan, credit card, or mortgage. These inquiries require your explicit permission and signal to lenders that you are seeking additional credit. A hard inquiry can temporarily lower your credit score by a few points because it suggests a potential increase in your debt burden.

While a single hard inquiry has a minor, short-lived effect, multiple hard inquiries in a brief period can raise concerns for lenders and may lead to a more noticeable, though still temporary, dip in your score. Hard inquiries remain on your credit report for up to two years, but their impact on your credit score diminishes or disappears within 12 months. An exception exists for rate shopping for certain loans, like mortgages, auto loans, or student loans. Multiple inquiries for the same type of loan within a concentrated period are often treated as a single inquiry to avoid penalizing consumers for seeking the best rates.

Checking Your Own Credit Score

Checking your own credit score through legitimate channels is always categorized as a soft inquiry. This means regularly monitoring your score will not cause it to decrease. This allows you to stay informed about your credit health without fear of negative consequences.

There are several free methods to check your credit score. Many credit card companies offer free access to your FICO Score as a benefit to cardholders. Additionally, various reputable credit monitoring services, including those from the credit bureaus like Experian and TransUnion, provide free access to your score. These services utilize soft inquiries, ensuring your score remains unaffected as you track its progress.

You can also obtain a free copy of your credit report from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion) by visiting AnnualCreditReport.com. Federal law entitles you to one free report from each bureau every 12 months, and you can currently access these reports weekly. While these reports primarily detail your credit history rather than directly providing a score, many platforms offering free scores also link to this information. Regularly checking both your score and report can help you identify potential errors or signs of identity theft, contributing to your overall financial well-being.

How Credit Scores Are Affected

Beyond inquiries, several factors influence your credit score. Payment history holds the most weight, accounting for 35% of your FICO Score, highlighting the importance of paying bills on time. The amounts you owe, also known as credit utilization, represents about 30% of your score and reflects how much of your available credit you are currently using. Maintaining low balances relative to your credit limits is beneficial.

The length of your credit history, including the age of your accounts, contributes approximately 15% to your score. A longer history of responsible credit management results in a higher score. Your credit mix, or the variety of credit accounts you manage (such as credit cards and loans), makes up about 10% of your score. Finally, new credit, which includes recent hard inquiries and newly opened accounts, accounts for the remaining 10%. While hard inquiries are a factor, their impact is less significant than consistent payment behavior and overall debt management.