How Often Are Credit Scores Pulled?

Lenders use credit scores to help determine whether they should extend credit terms to consumers. Credit bureaus such as TransUnion, Experian and Equifax provide a three-digit credit score to lenders upon request. Maintaining favorable credit scores could position you to obtain competitive lending terms. Generally, you should know about third-party requests to view your credit report, as your signature is required for a lender to pull your credit.

Credit Application

An applicant who submits a financing request typically authorizes a lender to pull his credit report. A lender reviews the applicant's credit rating and generally checks his credit score. Some lenders, such as auto finance companies, banks and mortgage companies, rely on credit scores to predict the applicant's risk potential. Below-average credit scores often indicate a higher chance of default, while above-average credit scores may reflect a safer lending risk. If the applicant meets the lender's credit qualifications, the lender may grant financing terms.

Background Check

Background checks are often performed when an applicant applies for a new job. A prospective employer might review an applicant's credit rating before finalizing a hiring decision. Some insurance companies require credit scores to determine certain risk factors before issuing an auto insurance policy.

Frequency

A tri-merged credit report and credit score could enable the requester to view multiple credit scores and credit data. Requesters generally initiate a single pull of an applicant's credit. Typically, credit ratings and credit scores are used to make a quick lending or risk decision. If the credit review process takes greater than 30 days, some requesters may want to pull a new credit report and credit score for the most current reporting period.

Considerations

A consumer could pull her credit score as often as needed without impacting her credit score. However, a consumer who permits a merchant or other entity to pull her credit may risk lowering her credit score for each inquiry. While shopping for a mortgage loan or an auto loan, consumers typically have a two-week period to shop for financing without significantly impacting credit scores.