Does Requesting Your Credit Report Hurt Your Credit Score?

Credit scores are important three-digit numbers that dictate when consumers qualify for everything from credit cards to vehicle loans to mortgages and influence the interest rates they pay. FICO explains that it uses a wide range of credit-related data to calculate its scores, including the number of accounts a person has, their available credit and owed balances and whether payments are made on time. Credit report requests sometimes figure in, too, depending on who asks for them.

Types

Requests for credit reports show up on the reports themselves as either hard or soft inquiries, depending on who makes the request and its purpose. A hard inquiry results from a loan or credit card application. Creditors get the reports to evaluate their contents as part of the decision-making process. A soft inquiry happens when a financial services company or insurer buys information to make a pre-approved offer to a consumer. Self requests for credit reports from consumers are also considered soft inquiries.

Requests

A person is entitled to request credit reports by purchasing them from the credit bureaus, private firms or through the free federally-approved website, Annual Credit Report. Annual Credit Report provides one no-cost report once a year from TransUnion, Equifax and Experian, which are the three national credit reporting agencies.

Neutral/Negative Effects

Soft inquiries have no effect on credit score calculations, according to FICO. This category includes requests from people to review their own reports, as well as promotional inquiries. Hard inquiries have a somewhat negative effect, although it is minor, unless someone fills out a large number of applications within a short time period. FICO explains that it does not penalize people for "rate shopping" with several mortgage or car loan companies within two weeks.

Positive Effects

People who request their own credit reports may be able to improve their credit scores if they find inaccuracies in the records. The Motley Fool financial site writer Dayana Yochim warns that eight out of 10 reports list erroneous delinquencies and other mistakes. Regular credit report requests let consumers catch and dispute incorrect items. The FTC explains that TransUnion, Equifax and Experian are obligated to remove disputed entries if they cannot verify the data with the creditor that provided it. People can monitor credit records throughout the year by getting a report from one bureau at four month intervals through Annual Credit Report to avoid any charges.