Is It True That When You Check Your Credit Score It Goes Down?

Don't be concerned about checking your own credit report and score. While it is true that your credit score can suffer a temporary hit when potential creditors check your report, you can check your own score as often as you like without repercussions.

Credit Reports

A credit report details your history of requesting and using credit. Companies known as credit bureaus or credit reporting agencies compile your report using information provided by creditors or recorded in public records. Your credit report lists the name of your creditors, the amount you owe or owed them, your repayment history, including whether you make your payments on time and whether you have recently applied for credit.

Credit Inquiries

When you, a creditor, employer or landlord requests your credit report, the credit bureaus record the request as an "inquiry." However, there are two types of inquiries: one that becomes a part of your credit report for anyone to see, and one that is only visible to you. The first type of inquiry is known as a hard inquiry, or hard pull, and only happens when you apply for credit. The hard inquiry appears on your credit report and can lower your credit score.

The second type of inquiry is a soft inquiry, or soft pull, and is used by employers to verify your identity, some creditors who want to offer you credit (as opposed to your requesting credit) and your monitoring of your own credit reports. A soft inquiry won't affect your credit score and won't appear to others who look at your report.

Credit Scores

A credit score is a number that summarizes information on your credit report. The more positive the information on your credit report, the better your credit score. Hard inquiries for credit can have a slight negative affect on your score because they reflect your willingness to take on more debt.

Checking Your Own Score

Because checking your own credit reports doesn't affect your score, you should feel free to monitor your credit report as you wish. In fact, checking your credit report frequently can help you keep tabs on your finances and catch errors and identity theft before they spiral out of control.

Free Credit Reports

Federal law gives you the right to request one free credit report from credit bureaus and consumer reporting agencies each year. You can get a free credit report from the three major U.S. credit bureaus every 12 months by visiting AnnualCreditReport.com.