Does Checking Your Credit Report Affect Your Credit Score?

Checking your credit report yourself does not hurt your credit score, unlike the hard inquiry that occurs when a lender checks your credit.

What Information Is on Your Credit Report?

A credit report is a useful resource when it comes to financial wellness. Your credit report details a variety of information including:

• Personal information: Your name, address, date of birth, social security number, employment information, and other facts are found here. You want to be sure that your personal information is accurate.
• Account names: All of your current and prior accounts can be found on your credit report. Each entry should include the lender name, account number, date the account was opened/closed, original and current balances, monthly payment amount, payment history, and current status.
• Credit limits: Some creditors will report your highest balance (for loans) and your credit limit (for credit cards).
• Public records: Derogatory marks will appear in this section, including civil judgments, bankruptcies, tax liens, and collections accounts.

Although you are likely checking your credit report in order to determine your credit health, you will not find your credit score on your annual credit report. There are other ways to check your credit scores, however, such as credit monitoring websites like Credit Karma.

Does Checking Your Credit Report Affect Your Credit Score?

Many people have heard that checking their credit report frequently can decrease their credit score. Luckily, this is just a myth – checking information on your credit report will have no standing on your credit score.

When you apply for credit, you will likely earn a “hard” inquiry on your account when the lender checks whether or not to extend credit to you. Each hard inquiry can drop your credit score by up to five points.

When you check your credit report, you may see a “soft” inquiry listed. This can also occur when a creditor views your report for the purpose of sending a pre-approval offer. Unlike hard inquiries, these inquiries do not have any effect on your credit score. Instead, they appear on your report as documentation.

Checking your credit report can actually be a good habit. By doing so, you can monitor the information on your report for any errors. Credit report errors can have real consequences when it comes to applying for a loan or credit card. If the error is significant enough, it could cost you to miss out on credit opportunities such as an auto loan or mortgage, or could result in your paying more in interest due to a lower credit score.

Monitoring your credit report can also be helpful for determining if you are the victim of fraud. If you see errors or accounts you don’t recognize, this could be an indication that your information was fraudulently used to apply for credit.

If you see an error on your credit report, you should dispute it with the creditor and, if necessary, the credit reporting agency. This can ensure that your credit remains healthy and that your information is accurate.

Join a Free Credit Report Errors Lawsuit Investigation

If you have errors on your credit report, you may qualify to participate in a credit report lawsuit investigation.

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This article is not legal advice. It is presented
for informational purposes only.