People often question whether checking their credit report will affect their score, but this is not the case. When it comes to requesting your own credit score, it does pay to be organised, while devising a sensible strategy for managing your finances is always advised.
By keeping an eye on your personal information and credit history, if something does not look quite right, you will be able to go in search of an explanation.
Only you and those you have given access to — such as lenders — have the permission to view this information. Having knowledge of your credit score will give you an indication of what you can and can’t apply for, too.
While checking your credit report does not affect your score, here are a couple of handy things to know about what will and won’t have an impact on your report.
Know the difference between a ‘hard’ and ‘soft’ check
– Soft check
When checking your own score, you will only be leaving a ‘soft print’ on your credit report. This kind of inquiry will not hamper your ability to get credit, nor will it be visible to potential lenders.
Don’t be afraid to ask for your credit score. After all, think about how much it could help — and don’t forget that being financially organised will benefit your monetary health in the future.
– Hard check
A hard check, on the other hand, has the potential to lower your credit score. When you go to apply for a loan, credit card, or other type of credit, one part of the application process will include the lender pulling your credit score. This hard inquiry will provide the lender with the information on whether they can approve the loan and can stay on your report for a while.
Pay your bills on time If you’ve borrowed funds for that dream holiday or car you have been wanting for a while, ensure that you are paying the lenders back on time in order for your credit score not to be affected. Be aware that if you are unable to meet the repayment dates, the longer it takes, the more of a negative effect it has on your score.
** This is a guest post **