The simple answer to whether your credit score drops when you check it is: no, it does not. Checking your own credit score is considered a soft inquiry, which has no impact on your credit score. It’s important to differentiate between soft and hard inquiries to fully understand how each affects your credit score.
What are Hard and Soft Inquiries?
Understanding Soft Inquiries
Soft inquiries – also referred to as “soft pulls” or “soft credit checks” – are checks that do not affect your credit score. These include when you check your own credit score, receive pre-approved credit offers, or when a company checks your credit as part of a background check. For example, if you’re applying for a job and the employer conducts a credit check, it’s classified as a soft inquiry. These inquiries are only visible to you and do not show up on the credit reports that lenders see.
Since soft inquiries have no impact on your credit score, you can check your own score as often as you like without worrying about any negative effects. This is a great way to stay informed about your financial health and track your progress over time.
Understanding Hard Inquiries
Hard inquiries – also referred to as “hard pulls” or “hard credit checks” – are a different story. These occur when a lender reviews your credit as part of a credit application process and will use your credit as part of a decisioning process. Common examples include applying for a credit card, mortgage, car loan, private student loan, or any other type of financing that requires a credit check. Unlike soft inquiries, hard inquiries are visible to other lenders and can have a small, temporary impact on your credit score, typically lowering it by a few points.
The reason hard inquiries can affect your score is that they represent potential new debt, which could impact your ability to repay existing obligations. While a single hard inquiry is unlikely to significantly affect your score, multiple inquiries in a short period could signal to lenders that you are a higher credit risk. It’s important to note, though, that credit scoring models like FICO and VantageScore account for rate shopping. For example, if you are shopping around for a mortgage, student loan, or auto loan within a specific timeframe (usually 14-45 days depending on the scoring model), multiple hard inquiries for the same type of loan will be treated as a single inquiry.
How Long Do Inquiries Stay on Your Credit Report?
Hard inquiries will stay on your credit report for up to two years. They may temporarily impact your credit score, but usually their impact will only affect your score for one year.
How Checking Your Credit Can Benefit You
Monitoring for Errors and Fraud
Regularly checking your credit report is an important habit that can help you catch errors or signs of identity theft early. Mistakes on your credit report, such as incorrect account information or signs of fraudulent activity, can significantly impact your credit score if left unaddressed. By routinely reviewing your credit, you can identify and dispute any inaccuracies quickly, helping to maintain the integrity of your credit profile.
Credit reports are available for free once a year from each of the three major credit bureaus–Equifax, Experian, and TransUnion–through AnnualCreditReport.com. Checking your full credit report this way does not count as a hard inquiry and will not impact your score.
Tracking Credit Score Progress
Regularly reviewing your credit score can also help you stay on top of your financial goals, whether you’re aiming to improve your score or preparing for a major purchase like a home or car. By monitoring your score, you can see the impact of your financial decisions over time, such as paying down debt or increasing your available credit. This visibility helps you make informed decisions that align with your financial objectives.
Many financial institutions and credit card companies offer free credit score monitoring services that allow you to track your score without any impact. Taking advantage of these tools not only keeps you informed but also helps you stay motivated as you work towards better credit.
Common Myths About Checking Your Credit Score
Myth: Checking Your Credit Score Lowers It
One of the most common myths about credit scores is that checking your own score will cause it to drop. This misconception likely stems from confusion between soft and hard inquiries. As previously mentioned, checking your own score is a soft inquiry and has no impact on your credit. This myth persists because many people are unaware of the differences between these types of checks, leading to unnecessary fear and avoidance of monitoring their credit.
A 2023 survey found that 31% of Americans don’t even know their own credit score. Debunking this myth can encourage more individuals to take charge of their credit health, as monitoring your credit is one of the best ways to manage it effectively.
Myth: All Inquiries are Created Equal
Another common misconception is that all credit inquiries affect your score equally. This is not true. While both soft and hard inquiries involve a review of your credit, only hard inquiries have the potential to affect your credit score. Soft inquiries, such as checking your own score or getting pre-approved offers, are completely harmless to your credit profile.
Best Practices for Monitoring Your Credit Score
Utilize Free Credit Monitoring Services
To keep an eye on your credit without impacting your score, consider using free credit monitoring services. These services provide regular updates on your credit score and report, and some even offer alerts for significant changes, such as new accounts opened in your name. Reliable options include services from banks, credit card companies, or independent providers like Credit Karma or Experian’s free monitoring tool. These resources allow you to monitor your credit health without the worry of damaging your score.
Set Up Alerts for Unusual Activity
In addition to regular monitoring, setting up alerts for unusual activity on your credit report is a proactive way to manage your credit health. Many credit monitoring services offer alerts for changes like new accounts, hard inquiries, or significant changes in account balances. These notifications help you respond quickly to any suspicious activity, reducing the risk of identity theft or fraud that could negatively impact your credit score.
By setting up these alerts, you stay informed and in control, making it easier to maintain a healthy credit profile without the stress of constant manual checks.
Maintaining Healthy Credit with the Ambition Card1
Maintaining a healthy credit score is an ongoing process, and College Ave is here to help. College Ave offers a variety of resources, including informative articles, financial tools, and the College Ave Ambition Card, which supports responsible credit use. This student card comes with features designed to help you build and maintain good credit habits2, such as clear terms, credit monitoring tool, cash back on all your purchases3 and a mobile app.
College Ave is committed to supporting students and their families on their financial journeys, providing the tools and guidance needed to achieve and maintain a strong credit profile.
Conclusion
In summary, checking your own credit score does not hurt it. Understanding the difference between hard and soft inquiries is key to managing your credit wisely. Regular monitoring, utilizing free services, and setting up alerts can help you stay on top of your credit health without any negative impact. Don’t let myths and misconceptions keep you from taking control of your credit journey. Instead, embrace the tools and resources available, like those offered by College Ave, to grow and maintain a strong and healthy credit profile.
Get Started with College Ave’s Ambition Card and take a proactive step towards achieving your financial goals with confidence.
Footnotes
1 College Ave is not a bank. Banking services provided by, and the College Ave Mastercard Charge Card is issued by Evolve Bank & Trust, Member FDIC pursuant to a license from Mastercard International Incorporated. Mastercard and the Mastercard Brand Mark are registered trademarks of Mastercard International Incorporated. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by College Ave
2 The Ambition Card is designed to help you build your credit; however, a variety of factors impact your credit including payment history, utilization, derogatory marks, account age, total number of accounts, and inquiries – not all factors are equally weighted
3 Cash back rewards are subject to the Ambition Rewards Terms & Conditions.
