Will Checking My Credit Report Hurt My FICO Score?
People wonder if checking their credit report often will affect their FICO score, because it's a known fact that inquiries into the credit report hurt it. The truth is, credit bureaus actually encourage consumers to check their reports. Here's the lowdown on when checking credit reports will affect your score.
Many people ask us about this, wondering if they should follow the advice they see on the internet about checking their credit report often. To their knowledge, inquiries into one's credit report will hurt their score, and the plethora of contradictory advice is confusing.
Here's our take on the issue. There is a huge difference between an inquiry that you initiated to check your credit report and FICO Score, and an inquiry from other parties. Credit agencies understand that there is a need for you to check your credit report and score, and in fact, they advise that you check it frequently. Once a year should be the minimum, and if you have the money to pay for additional credit reports then by all means do so.
You are entitled to get your free annual report once a year from the three major credit reporting agencies: Experian, TransUnion and Equifax. The report will be free, but you will have to pay for your FICO score. You also have the option to order all three reports at the same time, or get one report every few months until you get all three. The fact is, you have to check your report and score, and the more often you do this the more you can ensure that your identity is not being used by somebody else and that all the information in your report is updated and accurate.
When you order your credit report and FICO score, this inquiry gets reported in your credit profile but only you will see it and it will not have any negative effect on your score. This is because the FICO scoring formula ignores any inquiries that you make on your credit report. Checking your own credit report and score is called a "soft" inquiry.
So what kinds of inquiries make your FICO score go down? It is when other parties - credit card companies, insurers, lenders, etc. - check your report that your FICO score goes down. One example is when you apply for new credit, such as a credit card application or a loan. Before approving your credit application the lender will expectantly request for a copy of your credit report and FICO score. If you make too many credit applications, that is sure to ding your score. Another is if you ask your lender to pull your score. Still a third example is when you order your credit report from an agency other than the big three, such as a service not affiliated with a credit bureau. All these are called "hard" inquiries.
It is perfectly all right to ask for your credit report and FICO score as many times as you wish, just make sure you request them from an FTC authorized credit bureau. If you want to apply for a new credit card or loan and must shop around for the best rates, make sure you do this for a focused period of two weeks, not more.
When you get your credit report, review every item carefully to make sure all the information about you is accurate and updated.
Here's our take on the issue. There is a huge difference between an inquiry that you initiated to check your credit report and FICO Score, and an inquiry from other parties. Credit agencies understand that there is a need for you to check your credit report and score, and in fact, they advise that you check it frequently. Once a year should be the minimum, and if you have the money to pay for additional credit reports then by all means do so.
You are entitled to get your free annual report once a year from the three major credit reporting agencies: Experian, TransUnion and Equifax. The report will be free, but you will have to pay for your FICO score. You also have the option to order all three reports at the same time, or get one report every few months until you get all three. The fact is, you have to check your report and score, and the more often you do this the more you can ensure that your identity is not being used by somebody else and that all the information in your report is updated and accurate.
When you order your credit report and FICO score, this inquiry gets reported in your credit profile but only you will see it and it will not have any negative effect on your score. This is because the FICO scoring formula ignores any inquiries that you make on your credit report. Checking your own credit report and score is called a "soft" inquiry.
So what kinds of inquiries make your FICO score go down? It is when other parties - credit card companies, insurers, lenders, etc. - check your report that your FICO score goes down. One example is when you apply for new credit, such as a credit card application or a loan. Before approving your credit application the lender will expectantly request for a copy of your credit report and FICO score. If you make too many credit applications, that is sure to ding your score. Another is if you ask your lender to pull your score. Still a third example is when you order your credit report from an agency other than the big three, such as a service not affiliated with a credit bureau. All these are called "hard" inquiries.
It is perfectly all right to ask for your credit report and FICO score as many times as you wish, just make sure you request them from an FTC authorized credit bureau. If you want to apply for a new credit card or loan and must shop around for the best rates, make sure you do this for a focused period of two weeks, not more.
When you get your credit report, review every item carefully to make sure all the information about you is accurate and updated.
How to improve your FICO score
Insiders' tips on how to repair your FICO score quickly
Insiders' tips on how to repair your FICO score quickly
Use the feedback form below to submit your comments.
Use the form below to email this article to your friends.
- FICO Score - Managing Your FICO Credit Score
- Should a Man's FICO Credit Score Always Be Higher Than A Woman's?
- FICO Credit Scores Basics – Know the Facts
- FICO Has Something to Say About You
- What's FICO Scores All of a Sudden?
- Exactly What Is Your FICO Score And How Does It Impact On Your Borrowing?
- Get Free Credit Report and FICO Score
- You and Your FICO Score
- How are Credit Scores Calculated
- Truth about Paying Collection Accounts and Credit Score
- How to Increase Your Credit Scores with One Short Phone Call
- Tips On Comprehending Different Credit Scores
- Get the best price on a mortgage - Improving your credit score the easy way
- 4 Simple Ways To Raise Your Credit Score
- RAISE Your Credit Score With One Simple Phone Call!
- What is a Good Credit Score?
- Tips to Improve Your Credit Score
- How to Improve Credit Score
- Is 700 a Good Credit Score
- A Secret Credit Score Your Car Dealer Won't Tell You About
- Credit Score Ranges and What They Mean
- Credit Score Rating Scale
- Credit Score Scale: What Is a Good Credit Score?
- Credit Scores Explained
- Rebuilding Credit Score
- Credit Score Needed to Buy a House
- Improve Credit Score After Bankruptcy
- Improving Credit Scores After Foreclosure
- Improving Credit Score: How to Improve Credit Score Fast
- Free Credit Score - No Credit Card Needed
- What is a Good Credit Score Rating
- Credit Score Range
- Credit Score Ratings Explained
- Highest Credit Score Possible
- Credit Score Improvement