Most people ask themselves whether they are capable of damaging their credit score by merely requesting it. Since credit has become one of the determining factors in getting loans, credit cards, mortgages, apartments and a lot more consumers would naturally that they would want to keep track of their scores. However, concerns that this will in some way harm the credit and make it more difficult to obtain credit make some people not to check at all.
The good news is that merely checking your credit rating does not harm it in any way at all. Checking your credit report and score does not harm it as long as you use a reliable source such as AnnualCreditReport. com or your credit card company. Here are the things you should know regarding credit score and its impact on credit.
Applying for Your Credit Score Does Not Affect Your Credit
Just requesting a copy of your credit report or score or merely checking your credit score does not harm your credit in any way. If for instance you simply call your credit bureau in an attempt to get a copy of your credit report for purposes of checking your score, status, etc. , then it is known as a soft inquiry and does not affect your credit score – it just lets you look at your credit.
‘‘Hard inquiries’’, on the other hand, are the credit checks that come about as and when you apply for credit like credit cards, or loans. Such activities include having your credit report run by the lenders and would affect the credit score for some time. However, merely pulling one’s own credit report or credit score does not guarantee hard inquiries. This myth stems from the failure to distinguish between the two kinds of research questions.
You have the right to so-called credit checks or credit reports
The reason why checking your own credit reports does not affect your credit is because under the law there is the right to obtain credit information and your score. The government provides consumers with access to credit data to be aware of any fraudulent activity or errors that require correction.
However, you can obtain one free credit report from each of the three major credit reporting agencies: Experian, Equifax, and TransUnion, every 12 months using the official website that is AnnualCreditReport. com. A good number of credit card companies and banks also offer customers a way to get free credit scores too for instance. These consumer protections make sure you can monitor your credit without going through a detrimental experience.
If You Should Check Your Credit Score
Since credit score checking is not a factor that has negative impacts on your credit, then it’s advisable to check on your score approximately three to four times per year or before applying for a credit. Maintenance of credit score is possible so that any problem is detected in the initial stage while credits are gradually established by practicing good financial habits.
Here are some times when it pays to check your score:Here are some times when it pays to check your score:
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From credit cards to loans for cars, a house, etc. It is helpful to know ahead of time your likelihood of being approved for credit, and what interest rate you might be facing. This means that if the situation calls for it, you can make changes to the situation for the better.
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If you have information that your identity has been stolen. It is recommended to check it from time to time especially if you have found fraudulent charges or other suspicious activity in your account. If it is necessary, then put a fraud alert on your credit report.
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Following some significant change in ones life such as marriage, divorce or even a career change. Prominent life changes such as college graduation, getting a new job, marriage, divorce, having a baby and others can all have direct or indirect effects on your finances and credit. It is recommended to check whether this transition does not negatively affect the score.
- When keeping an eye on your financial status. Checking the score on a frequent basis is useful in determining the individual’s financial status and to identify declines immediately before they inflict considerable losses.
Regarding credit scores, the question that interests us is:
These factors can cause your credit score to drop:These factors can cause your credit score to drop:
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Missing payments
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Credit cards reaching their limits
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Closing credit cards that are not in active use
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Purchasing and applying for many new credit accounts within a short period
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Defaulting on loans
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Some of the mistakes that may be found on your credit report include; duplicate accounts, fraud,
It does not harm your credit score or your capacity to borrow money when you check your own credit. So, there is nothing to worry about, just as long as you keep checking your credit safely. credit score checking often helps you in making good financial decisions.
