Will my credit score drop if I check it myself?

Credit score inquiries, also known as credit inquiries or credit checks, can be classified into two main types: hard inquiries and soft inquiries. These inquiries have different impacts on your credit score, and it's important to understand the difference:

1. Hard Inquiries:

• Definition: A hard inquiry occurs when a lender or creditor checks your credit report as part of their decision-making process when you apply for credit. This typically happens when you apply for a new credit card, loan, mortgage, or other types of financing.

• Impact on Your Credit Score: Hard inquiries can have a negative impact on your credit score. Each hard inquiry typically results in a small decrease in your score. However, the impact is usually temporary, and your score can recover over time.

• Duration on Your Credit Report: Hard inquiries remain on your credit report for up to two years, but they generally only affect your credit score for the first year. Over time, the impact diminishes.

2. Soft Inquiries:

• Definition: A soft inquiry occurs when someone checks your credit report for reasons other than credit approval. This includes checking your own credit report, pre-approved credit offers, background checks for employment, and credit monitoring services.

• Impact on Your Credit Score: Soft inquiries do not impact your credit score. They are not considered as factors in credit scoring models because they are not associated with credit risk.

• Duration on Your Credit Report: Soft inquiries may be visible on your credit report, but they are typically not shown to potential lenders or creditors when they review your credit history.

Why Self-Checking Your Credit Is Important:

Regularly checking your own credit report, also known as a "soft pull" or "soft inquiry," is a responsible financial habit. It allows you to:

1. Monitor for Errors: Checking your credit report can help you identify and dispute any errors or inaccuracies, ensuring that your credit history is accurate.

2. Detect Fraud: Early detection of unauthorized accounts or suspicious activity on your credit report can help you address potential identity theft or fraud.

3. Track Your Credit: Regular self-checks allow you to monitor your credit history, observe changes, and work on improving your credit score over time.

4. Prepare for Credit Applications: Before applying for credit, it's a good practice to review your credit report to ensure that it accurately reflects your financial history. This can help you address any issues that might affect your approval chances.

In summary, checking your own credit report (a soft inquiry) is a responsible financial practice and does not harm your credit score. However, it's essential to be mindful of hard inquiries, as they can have a temporary negative impact. Use hard inquiries judiciously and be aware of their potential impact on your credit when applying for new credit accounts.