Understanding the Impact- Does Checking Your FICO Score Really Lower It-

Does checking your FICO score lower it? This is a common question that many individuals have when they consider reviewing their credit reports. The answer to this question is both yes and no, depending on the type of credit inquiry and the frequency of checking your score. In this article, we will explore the different types of inquiries and how they can affect your FICO score.

FICO scores are a crucial factor in determining your creditworthiness and can significantly impact your ability to obtain loans, credit cards, and other financial products. These scores are calculated based on various factors, including payment history, credit utilization, length of credit history, types of credit used, and new credit.

When you check your FICO score, there are two types of inquiries that can occur: soft inquiries and hard inquiries. Soft inquiries, also known as soft pulls, do not affect your credit score. These inquiries are typically performed when you check your own credit score, apply for a pre-approved credit card, or conduct a rate check. Since these inquiries are not visible to lenders, they do not impact your creditworthiness.

On the other hand, hard inquiries, also known as hard pulls, can temporarily lower your FICO score. These inquiries occur when you apply for new credit, such as a mortgage, car loan, or credit card. Each hard inquiry can cause a small drop in your score, typically around five points, and the impact can last for up to a year. However, the overall impact on your score depends on the number of hard inquiries and your credit history.

It is important to note that checking your FICO score through a credit monitoring service does not count as a hard inquiry. These services provide you with access to your credit report and score without affecting your creditworthiness. Additionally, multiple inquiries for the same type of credit within a short period of time (usually 14-45 days) are often grouped together and counted as a single inquiry, which can minimize the impact on your score.

In conclusion, checking your FICO score does not lower it if you are performing a soft inquiry. However, hard inquiries can temporarily lower your score when you apply for new credit. It is essential to manage your credit inquiries wisely and only apply for new credit when necessary. By monitoring your credit score regularly and maintaining a good credit history, you can ensure that your FICO score remains strong and favorable to lenders.