Running a credit report -- called a credit inquiry -- has the potential to damage a credit score, but not when the consumer obtains his own credit report. The credit bureaus do not penalize you for checking your own report, so running a report on yourself can be helpful. However, you need to be aware of credit checks by other parties.
Identification
You could run a credit check on yourself hundreds of times and it would not affect your credit rating, because it is a "soft" inquiry. The credit bureaus do not consider a personal credit report request an application for credit, and, therefore, it does not reflect your borrowing or lending habits and does not affect your credit score. Lenders cannot see the soft inquiry history on a credit report, so they cannot discriminate against people checking their credit history, according to the Privacy Rights Clearinghouse.
Confusion
Credit checks begin to affect your score when you consent to having another party pull your credit report in conjunction with a request for a loan or service. This is called a "hard" inquiry. Hard inquiries may cost you up to five points in the FICO scoring system, according to the MyFICO website. This may not seem like much, but they become increasing important as the number of inquiries increases. Once you have eight inquiries you may become a credit risk, but inquiries alone probably won't cause a rejection for credit.
Benefits
While checking your own credit cannot boost your score in the FICO model, it may make you a better borrower, which could indirectly lead to a score increase. A 2008 Consumer Federation of American survey found that borrowers who claimed they checked their report in the past year tended to have higher credit scores and knew more about the credit scoring process and handling debt in general than consumers who did not check their report.
Tip
You can obtain a free copy of your credit report once every year from each of the three credit reporting bureaus -- Equifax, Experian and TransUnion -- through the AnnualCreditReport.com website. The credit bureaus often contain different information, so compare all three and review any negative items. Black marks on your credit record, such as missed payments and delinquent accounts, make hard inquiries more serious in the eyes of lenders, especially when they have dates close to each other, according to Experian.
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