Despite common misconceptions, simply checking your credit score will not lead to any increase or decrease in your score. The mechanics behind credit scores can sometimes be confusing, but there’s no need to worry.
There are two kinds of inquiries that can affect your credit score: soft pulls and hard pulls. When you check your own credit score, it counts as a soft pull, which does not impact your score. Soft pulls also occur when institutions check your credit for pre-approved offers or promotions, and even during background checks conducted by employers without your consent.
On the other hand, hard pulls come into play when you apply for credit. Lenders perform hard pulls to assess your creditworthiness when you seek a loan or other credit. Each hard pull may slightly lower your credit score and can remain on your report for up to two years, but typically only affects your score for a year or less. Unless you frequently apply for new credit, hard pulls shouldn’t have a substantial impact on your score.
Even though hard pulls can cause a minor dip in your credit score, what matters most is your track record of making payments on time. While the impact of hard pulls is not drastic, it serves as a reminder not to excessively seek new credit. Constantly shopping around for credit from various lenders may reflect negatively on your credit score. However, conducting soft pulls, such as checking your own credit score, has no adverse effects, so feel free to monitor it regularly without worry!
