Does Checking Your FICO Score Actually Lower It- A Comprehensive Insight

Does checking your FICO score lower it? This is a common question among individuals who are keen on maintaining or improving their creditworthiness. The answer, however, is not straightforward and depends on several factors. In this article, we will delve into the intricacies of checking your FICO score and its potential impact on your credit rating.

The first thing to understand is that there are two types of inquiries when it comes to checking your FICO score: soft inquiries and hard inquiries. Soft inquiries occur when you check your own credit score or when a lender checks your score for a pre-approved credit offer. On the other hand, hard inquiries happen when you apply for a new credit card, loan, or mortgage, and the lender checks your credit score as part of the application process.

Does checking your FICO score lower it through soft inquiries?

Checking your FICO score through soft inquiries does not lower it. In fact, it is considered a “permission inquiry” and does not affect your credit score. This is because the inquiry is not related to a credit application and is typically used for informational purposes. As such, you can check your FICO score as often as you like without any negative impact on your credit rating.

However, it is important to note that if you check your credit score frequently (e.g., every few days), lenders may perceive it as a sign of financial stress or an attempt to open multiple lines of credit simultaneously. While this may not directly lower your FICO score, it could potentially raise red flags for lenders during the application process.

Does checking your FICO score lower it through hard inquiries?

Checking your FICO score through hard inquiries can have a temporary impact on your credit score. When a lender checks your credit score, it is recorded as a hard inquiry on your credit report. Multiple hard inquiries within a short period can be viewed negatively by lenders, as it may indicate that you are applying for too much credit at once or facing financial difficulties.

However, the impact of a hard inquiry on your FICO score is relatively minor. According to FICO, a single hard inquiry can lower your score by up to 5 points, but this is usually temporary. Once you have established a new account or secured the credit you applied for, the impact of the hard inquiry typically fades over time.

In conclusion, does checking your FICO score lower it? The answer is no, checking your FICO score through soft inquiries does not lower it. However, hard inquiries can have a temporary impact on your credit score. It is important to keep in mind that the frequency and reason for checking your credit score can affect how lenders perceive you as a borrower. To maintain a healthy credit score, it is advisable to check your credit score only when necessary and to manage your credit responsibly.