Knowing what your credit report contains is an important part of maintaining your credit. You may have heard that too many credit inquiries lowers your credit score. This is true. However, you are able to pull your credit report without being penalized.
Soft Inquiries
Credit bureaus do not treat all inquiries the same. If you obtain a copy of your credit report, it is classified as a soft inquiry. Soft inquiries do not affect your score.
Hard Inquiries
A hard inquiry will bring down your credit score. Whenever you apply for credit, it will be reported by the bureau as a hard inquiry. Too many hard inquiries can be a red flag to potential lenders. A lender does not want to see a borrower who is trying to open numerous lines of credit.
Monitoring Your Report
Under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report from Experian, Equifax and Trans Union each year. To get your copies, visit annualcreditreport.com. While credit reports are free, you will need to pay a fee if you want to obtain your credit score.
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