Does checking your FICO credit score lower it? This is a common question among individuals who are trying to maintain a good credit standing. The answer, however, is not as straightforward as one might think. Understanding the nuances of how checking your credit score impacts it is crucial for making informed decisions about your financial health. In this article, we will delve into this topic and shed light on the factors that determine whether checking your FICO score can lower it or not.
Firstly, it’s important to differentiate between a hard inquiry and a soft inquiry. When you check your credit score, it can result in either a hard inquiry or a soft inquiry, and the impact on your score varies significantly between the two. A hard inquiry occurs when you apply for credit, such as a loan or a credit card, and the lender checks your credit score to assess your creditworthiness. This type of inquiry can temporarily lower your score by a few points. On the other hand, a soft inquiry is when you check your credit score yourself or when a lender checks your score for promotional purposes without affecting your score.
Now, coming back to the original question, checking your FICO credit score does not lower it if it’s a soft inquiry. Soft inquiries are common when you review your own credit report or when a lender checks your score for pre-approval purposes. These inquiries do not have a negative impact on your score because they are not considered a credit application. However, it’s worth noting that multiple soft inquiries within a short period of time can be grouped together and may appear as a single inquiry on your credit report, which can still have a slight impact on your score.
On the other hand, if you’re checking your FICO score through a credit monitoring service that requires a hard inquiry, it may temporarily lower your score. The extent of the impact depends on various factors, such as your current credit score, the number of recent inquiries, and the overall health of your credit profile. Typically, the impact is minimal, and your score should recover within a few months as long as you continue to manage your credit responsibly.
In conclusion, the answer to the question “Does checking your FICO credit score lower it?” is not a simple yes or no. The impact of checking your credit score depends on the type of inquiry and various other factors. By understanding the difference between hard and soft inquiries, you can make informed decisions about when and how often to check your credit score without causing unnecessary damage to your creditworthiness.
