Does Checking FICO Score Hurt Credit?

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Pacific Debt Relief is not a credit repair organization nor does our program aim to improve your credit score. The information below is for educational purposes to help consumers make informed decisions as it relates to credit and debt.

Many people hesitate to check their FICO scores, fearing it might lower their credit. However, this common concern is based on a misunderstanding of how credit inquiries work. In reality, checking your own credit score is a critical part of maintaining financial health and does not negatively impact your credit.

This article will clarify the difference between 'soft' and 'hard' inquiries, explain why regularly monitoring your credit is beneficial, and provide you with the resources you need to keep a close eye on your financial standing. By understanding these fundamentals, you can take proactive steps to protect and improve your credit score without worry.

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The Difference Between Your Credit Report and Credit Score

First, it's important to understand the distinction between your credit report and your credit score.

Your credit report is a detailed record of your credit history maintained by the three major credit bureaus – Equifax, Experian, and TransUnion. It lists all of your credit accounts, loan repayment history, bankruptcies, collections, and recent credit inquiries.

Your credit score, on the other hand, is a three-digit number calculated based on the information in your credit report. It represents your creditworthiness at a snapshot in time.

The most commonly used credit score is the FICO score, with scores ranging from 300 to 850. The higher the score, the lower the risk you pose to lenders.

When you check your credit report, it does not affect your credit score. Requesting your credit report is considered a "soft inquiry" and is visible only to you. It does not show up for lenders reviewing your credit.

Checking your FICO credit score is also considered a soft inquiry and will not impact your score.

Hard Inquiries vs. Soft Inquiries

The reason checking your credit report or score doesn't affect your credit is because these are considered "soft inquiries."

There are two main types of credit inquiries:

• Soft inquiries - When you check your credit report or score, or a potential lender checks your credit to make pre-qualified offers. Soft inquiries do not impact your credit score.
• Hard inquiries - When a lender checks your credit in response to an application for new credit, such as a credit card, loan, or mortgage. Hard inquiries may cause a small, temporary drop in your credit score.

Hard inquiries indicate to other lenders that you are actively seeking new credit accounts. Too many hard inquiries to credit card issuers in a short period could signal higher risk to lenders, resulting in a slightly lower score.

However, the impact is generally minimal. According to FICO, a single hard inquiry typically only drops your score by less than 5 points and the impact fades over time. Your score will likely recover within 6-12 months as you continue to manage your credit responsibly.

It's also worth noting that if you are shopping for the best rate on a single loan (e.g. mortgage, auto loan) the major credit scoring models will lump multiple inquiries within a short window, say 14-45 days, into one inquiry. This prevents your score from being excessively dinged for smart shopping.

The bottom line is that while applying for new credit may cause a small drop in your score temporarily, checking your credit report or FICO score does not affect your credit whatsoever. Monitoring your credit is vital for maintaining your financial health.

How Often Your Credit Score Changes

Since your credit score is calculated based on the information in your credit report, it can fluctuate frequently as new information is added to your report. Any major changes to your credit accounts or payment history can impact your score for better or worse.

Generally, the more recent the credit event, the larger the impact on your current score. For example, if you miss a credit card payment, your score will likely drop significantly. But as you get credit account caught up and continue to pay on time, your score will gradually improve again.

Your credit report is updated by each bureau monthly, so new account information is factored into your score at least monthly. However, credit scoring models may update your score more frequently than that.

For instance, many credit card companies and lenders now offer access to free credit score monitoring, where your score is updated weekly or even daily. With services like this, you can track changes to your score in real-time as you manage your credit.

How Often Does Your Credit Score Update?

The takeaway is that your credit score is very dynamic, constantly factoring in new information from your credit profile. There's no limit to how often you can check your score without impacting it. Checking it routinely is the only way to closely monitor changes over time.

Does Viewing Your FICO Score Affect Your Credit?

A common question we encounter is whether viewing your FICO score can affect your credit. It's understandable to worry that checking your score might somehow lower it, especially when you're working hard to maintain or improve your credit standing. To clarify, does viewing your FICO score affect credit? Absolutely not.

Viewing your own FICO score is considered a soft inquiry, which means it has no impact on your credit score whatsoever. This is a crucial distinction to understand because it reassures you that you can, and should, monitor your credit score regularly without fear of negatively affecting it.

By keeping an eye on your score, you're taking a proactive step in managing your financial health, ensuring that you're always informed about where you stand with your creditworthiness.

Where Credit Inquiries Are Reported

Whenever someone requests your credit report or score, it results in an inquiry or credit card account, being recorded by the major credit bureaus.

Three main credit bureaus maintain credit reports:

• Equifax
• Experian
• TransUnion

Any time you check your credit or a lender performs a soft credit inquiry or a hard inquiry, it will be recorded on your report at all three bureaus.

Soft inquiries are only visible to you, while hard inquiries from lenders will remain on your credit report for up to two years where other lenders can see them. However, as noted above, the impact of both soft and hard inquiries on your actual score fades over time.

By routinely checking your credit report at AnnualCreditReport.com and monitoring your score, you can identify any inquiries you don't recognize. This is important for credit checks and for detecting potential identity theft. If you see an account you didn't open on your report, you can request the inquiry be removed and investigate further to protect your personal information.

The frequency with which you check your credit has no bearing on your ability to qualify for new credit or personal loans. The only inquiries mortgage lenders, credit card companies, or loan officers will see are the hard inquiries resulting from your actual applications.

What Makes for a Good Credit Score

Since your FICO score represents your creditworthiness, the higher your score, the better.

Here are some guidelines for what's considered a good or bad credit score:

• 800-850 - Exceptional. You'll qualify for the best rates and terms from lenders.
• 740-799 - Very good. You'll likely get approved for new credit at excellent rates.
• 670-739 - Good. You may qualify for new credit with good rates.
• 580-669 - Fair. You may still get approved but probably at higher interest rates or restrictions.
• Below 579 - Poor. You will struggle to qualify for financing and pay the highest rates if approved.

Generally, you want to aim for a score over 670 to unlock the most favorable credit terms and interest rates. The higher the better - a score over 800 will make you eligible for the very top credit balances and best rates lenders offer.

Seeing where your credit score falls about these tiers can give you an idea of how new credit applications are likely to go for you. If your score needs work, monitoring it regularly lets you track your progress as you take steps to improve your credit.

The most important thing is that simply checking your score, whether it's exceptional or poor, has no impact whatsoever.

How to Check Your Credit Score for Free

There are several easy options to check your credit score at no cost:

• Get your free credit report. At AnnualCreditReport.com, you can access your report from each bureau once per year. This will show you all the information potential lenders see.
• Use credit card or bank tools. Many cards and financial institutions provide free credit scores for their customers. They may also provide score simulators.
• Try Credit Karma or Credit Sesame. These free sites let you access your VantageScore credit score. While not an exact match to your FICO score, it still provides useful insight.
• Access your free FICO score. Through services like Experian Boost or Discover Credit Scorecard, you can get your real FICO score from TransUnion updated each month for free.

While you can purchase your exact credit scores from all three bureaus through sites like MyFICO.com, it isn't necessary. The free credit monitoring options above will provide the visibility you need to monitor your credit health.

Checking your score through any of these services results in a soft inquiry with no credit impact. So there is no downside to checking your score as often as you want through any method.

Why You Should Check Your Credit Score Regularly

Hopefully, it's clear now that checking your credit score yourself does not hurt your credit in any way. But why is it important to check your score routinely?

Here are some key reasons:

• Monitor your financial health - By checking your score regularly (e.g. monthly) you can monitor trends and catch problems early.
• Verify accuracy - Reviewing your credit report data can help you identify and dispute any errors.
• Avoid surprises - Know where you stand before applying for mortgages, loans, or credit cards. No surprises.
• Check for fraud - Routine checks can detect signs of identity theft like accounts you don't recognize.
• See the impact of changes - Watch how credit limit increases, new accounts, loan refinancing, and other factors influence your score.
• Track improvement - When working to improve your credit, checking often lets you gauge your progress.
• Build healthy habits - Monitoring your score helps you manage credit responsibly and make on-time payments.

No matter what your current credit score is, checking it yourself has no downsides. And making it a regular habit provides many benefits for your credit check and overall financial well-being.

Maintaining Good Credit

Now that you know checking your credit report and FICO score is risk-free.

Here are some tips for keeping your credit score in good shape:

• Pay all bills on time - Payment history is the biggest factor in your credit score. Even one late payment can hurt.
• Keep credit card balances low - High balances relative to your limit (over 30%) lower your score.
• Limit new credit applications - Too many hard inquiries from applying for multiple new accounts may downgrade your credit.
• Monitor your credit - Routinely check your credit report and FICO score from all three bureaus.
• Correct any errors - If you see mistakes on your credit report, file disputes to correct them.
• Consider credit mix - Having different types of credit (mortgage, credit cards, auto, etc.) generally improves your score.
• Don't close old accounts - Keeping your longest accounts open improves your credit history length.

By developing good credit habits and monitoring your score regularly, you can achieve and maintain a robust FICO score that will save you money over the long run.

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