Does My Credit Score Go Down When Someone Checks It?
Your credit score is a crucial factor that lenders use to determine your creditworthiness. It affects your ability to secure loans, credit cards, and even rent an apartment. With such importance placed on your credit score, it’s natural to wonder if it gets negatively impacted every time someone checks it. In this article, we will explore whether your credit score goes down when someone checks it and provide answers to frequently asked questions (FAQs) related to this topic.
The Impact of Credit Inquiries on Your Credit Score:
When someone checks your credit, it results in what is known as a “credit inquiry” or a “hard pull.” There are two types of credit inquiries: hard inquiries and soft inquiries. A hard inquiry occurs when a lender checks your credit as part of a loan or credit application, while a soft inquiry happens when you or a creditor checks your credit for non-lending purposes, such as pre-approval offers or checking your own credit.
Hard inquiries can potentially impact your credit score, but the effect is usually minimal. Each hard inquiry typically deducts a few points from your credit score and stays on your credit report for two years. However, the impact of hard inquiries tends to diminish over time, and multiple inquiries for the same type of credit within a short period are usually treated as a single inquiry.
On the other hand, soft inquiries have no effect on your credit score. They are not visible to other lenders and do not impact your creditworthiness. Checking your own credit score, inquiries from employers, or promotional offers typically fall under this category.
1. How many points will my credit score drop if someone checks it?
The impact of a hard inquiry on your credit score is usually minimal, typically resulting in a deduction of a few points. However, individual experiences may vary.
2. How long do hard inquiries stay on my credit report?
Hard inquiries stay on your credit report for two years. However, their impact on your credit score diminishes over time.
3. Will multiple inquiries for the same type of credit hurt my credit score?
Multiple inquiries for the same type of credit (e.g., mortgage or auto loan) within a short period are usually treated as a single inquiry and have minimal impact on your credit score.
4. Do soft inquiries affect my credit score?
No, soft inquiries have no effect on your credit score. They are not visible to other lenders and do not impact your creditworthiness.
5. Can checking my own credit score hurt my credit?
No, checking your own credit score is considered a soft inquiry and does not affect your credit score.
6. Do credit checks for employment purposes affect my credit score?
No, inquiries from employers for background checks or pre-employment screenings are considered soft inquiries and have no impact on your credit score.
7. Will receiving promotional offers and pre-approval offers hurt my credit?
No, receiving promotional or pre-approval offers does not affect your credit score. These inquiries are considered soft inquiries and have no impact on your creditworthiness.
In conclusion, while hard inquiries can have a minor impact on your credit score, the effect is usually short-lived. Multiple inquiries for the same type of credit within a short timeframe are generally treated as a single inquiry. Soft inquiries, on the other hand, have no effect on your credit score and are not visible to other lenders. Checking your own credit score, inquiries from employers, and promotional offers do not harm your credit. It is important to be mindful of hard inquiries, especially if you are planning to apply for new credit, but checking your credit score or receiving promotional offers will not negatively impact your creditworthiness.