Many people need credit or credit cards to create better living conditions and manage their budget better. The most important indicator to take credit or credit card is the credit score. So many people check their credit score and wonder if checking the credit score decreases the credit score.
Checking your credit score doesn’t lower it. However, if your credit score is checked by lenders or creditors, your credit score may decline. When you, your lenders or creditors check your credit score, a credit inquiry is necessarily made. These credit queries are included in your credit reports.
The credit score consists of the data in the credit reports. When you apply for credit, you can see the lenders or card issuers listed in your credit report, and even you can also see your credit score inquiries in your credit report.
Does checking your credit score lower it?
The ability to control the credit score can reduce it depends on what kind of credit inquiry occurs. Credit inquiries are divided into 2;
- Hard credit inquiries,
- Soft credit inquiries.
Hard credit inquiries occur if lenders or creditors checking your credit score when you apply for a loan. These credit queries lower your credit score and have a 10% impact on your credit score. The more hard credit queries occur, the lower your score. For this reason, you should investigate thoroughly and apply to acceptable places before applying for a loan. Hard credit inquiries remain in your credit reports for 2 years. However, since credit reporting agencies (Experian, Equifax, and TransUnion) do not take credit queries that occurred in previous years into account when calculating the credit score, the impact of hard credit queries on your credit score lasts less than 2 years.
Soft credit inquiries occur when you or your previously lenders or creditors checking your credit score. These credit queries will appear in the credit reports but will not lower your credit score. Even if you are not aware of it, you will often encounter soft credit inquiry.
We can illustrate the difference between the two concepts with the following example; if you have approved a credit card provider and your credit score is reduced when you receive your credit card, this is a hard credit inquiry and you are probably working with this credit card provider for the first time, or you have closed the credit account you created when working with this credit provider. A hard credit inquiry occurs because credit card provider checking your credit score before sending your credit card. When you have the same event, if your credit score does not fall, it is soft credit inquiry.
Is it important to checking your credit score with your credit reports?
Since your credit score is generated with credit reports, you should compare your credit score and credit report periodically.
Credit queries that occur when checking your credit score may not be relevant to you. A criminal can get your credentials and get credit, and credit inquiries can occur. In this way, you can notice this event without your knowledge and make the necessary intervention.