A credit score is the single number that has the biggest influence on your financial life. They affect the interest rates of loans, tenancy applications, and anything in between. That is why one has to keep track of their credit score most of the time. However, consumers are always concerned that even when they intend to check their credit score, it will harm them. Fortunately, that is not so at all. This is what you should know about credit score checks without damaging it.
The Two Major Credit Reporting Agencies
Currently, three big consumer credit bureaus offer credit reports and scores in the United States. Experian, TransUnion, and Equifax are some of the credit bureaus that exist. Different bureaux come up with a score differently depending on the information in the credit report that you have provided to them. When you pull your credit report and score, it does not harm your credit score with any of the credit bureaus. The truth is, that only new credit, late payments, and any other negative credit data can pull your scores down.
Appeal Your Credit Reports Today For Free
The good news is that you don’t have to pay to get your credit scores and doing so does not hurt your scores. AnnualCreditReportcom offers consumers the chance to get a free credit report from each of the three credit reporting agencies once in a year. However, this site does not offer credit scores; you can at least check your full reports to ensure the accuracy of the information provided. It also hurts credit scores, which is why it is necessary to check for mistakes.
However, there is a growing list of credit card companies and personal finance sites that provide free credit scores as well as free credit reports. For instance, credit score Discover Credit Scorecard and Credit Karma allow you to get your latest scores at any time for free. It only takes a couple of minutes to register. Then you can check the most recent scores from TU and Equifax if available. Services like these allow you to keep track of your credit scores without having to request reports that can trigger hard inquiries.
What is a hard credit check?
Any time you apply for any form of credit, the provider will pull your credit report to make decisions on your application. This leads to what is known as a ‘hard inquiry’ on your credit report. Hard inquiries also have the potential of lowering the credit score if they are made frequently within a short space of time. The reason is that many applications can signal that the relevant borrower poses a higher risk of defaulting on credit obligations.
Hard inquiries stand in contrast to what are termed “soft inquiries” These do not appear on the credit report and do not impact the score in any manner. It is important to note that any time you pull your credit report or score, it is considered a soft inquiry. Other people who may perform soft credit checks include potential employers and insurance companies, which will not affect your score. Thus, as long as you do not apply for credit, checking it yourself will not do any harm to the credit.
Why Checking Is Important
It is a financially prudent practice to keep an eye on your credit score as often as possible. This way, you can fix the mistakes just in case they are capable of causing severe harm to your result. It also enables you to monitor the progress of the number to improve it. It also serves as a motivator when you notice your credit score rising due to positive habits in handling money.
However, understanding your credit score also provides you with an added edge when applying for loans, credit cards, and any other financial-related products. Knowing approximately the interest rates one may clinch helps to manage expectations. Knowledgeable for the consumers it means that they can also delay application for credit till the time scores are high enough, to get better rates for loans. One must also refrain from having hard inquiries that are not warranted as they also affect the scores.
Strategies to Check Without Damaging Your Score
Here are quick tips for checking your credit score easily without initiating hard inquiries: Here are quick tips for checking your credit score easily without initiating hard inquiries:
- Go to AnnualCreditReportcom annually for the credit reports from the three major bureaus free of charge. Look for any mistake that might be reducing your scores and make sure you check them thoroughly.
- To get your credit scores for free, you can register with a service such as Credit Karma or Credit Sesame. These services only obtain soft inquiries that do not have any impact on your credit.
- Some of the credit card companies have recently started to include the free score in monthly statements or online accounts. It is used by banks such as Bank of America, Chase, Citi, and Discover among others.
- Before applying for a loan or any other credit card or any other financial product, the first thing to do is to look at the latest scores. This knowledge also enables you to guess the rates and terms that would be offered to you.
The Bottom Line
It is important to note that any activity involving your credit report and scores can only benefit your credit. The opposite is true, and being aware of your numbers consistently is one of the most beneficial things for your finances. Do not apply for credit that you do not need, and if there are mistakes on your reports, correct them, and you will notice that your scores are improving gradually. It has been said that you should frequently monitor your credit scores – it can only be beneficial for you!
Call now for expert credit repair services: (888) 803-7889
Read More:
Which is most accurate credit score?
How can I really check my credit score?
Is it safe to check credit score online?
How do I get my true FICO Score for free?
