There is a common misconception that checking your credit score can harm it in some way. However, this notion is not entirely true. To gain a clearer understanding, we need to look into different types of inquiries and their potential impact on credit scores.

There are two types of credit inquiries: soft inquiries and hard inquiries.

1. Soft Inquiries:

Soft inquiries occur when you check your own credit score or when a company checks your credit for promotional purposes, such as pre-approving you for a credit card or loan offer. Soft inquiries do not affect your credit score because they’re considered part of normal credit management. Credit bureaus recognize that you have the right to access and monitor your credit history, so these types of inquires are risk-free. Examples of soft inquiries include:

– Checking your own credit report or score through a trusted service such as AnnualCreditReport.com

– Pre-approved credit card offers

– Background checks by employers or landlords

2. Hard Inquiries:

Hard inquiries happen when a lender pulls your credit report during the process of evaluating an application for new credit, like a loan or a new credit card. This type of inquiry may have a small negative impact on your credit score because it suggests that you may be taking on additional debt, which might make you more likely to default on future payments. Examples of hard inquiries can include:

– Applying for a mortgage, auto loan, or personal loan

– Applying for a new line of credit or a higher limit on an existing account

– Requesting a balance transfer between two existing accounts

The effect of hard inquiries on your overall credit health depends on several factors, including the number of recent requests, whether they were approved or denied, and the time that has passed since those requests. A single hard inquiry is unlikely to significantly damage your score, especially if you have strong, well-established credit history.

In summary, checking your credit score on your own through a reputable service or having it evaluated for pre-approvals won’t lower it. Soft inquiries have no impact on your credit score, so you can be confident when monitoring your personal credit health. However, a hard inquiry may cause a slight decrease in your score, but this is generally negligible in comparison to other factors that influence your credit. Don’t hesitate to review and understand your own credit report; staying informed is an essential part of maintaining a healthy financial life.