Is It Harmful to Your Credit Rating to Check It Yourself?

Checking your own credit score is a common and often necessary task in today's financial landscape. Many people wonder if this action can have any negative impact on their credit rating. The good news is that regularly checking your own credit score is not only safe but also beneficial for your financial health.

Understanding Credit Inquiries

When you check your credit score on your own, it's categorized as a soft inquiry, which does not affect your credit score at all. However, it's important to understand the difference between soft and hard inquiries:

Soft Inquiry: This type of inquiry is performed by you or the credit reporting agencies (CRAs) for you. For example, checking your own score online or requesting a copy of your report. Soft inquiries are not visible to potential creditors and do not impact your credit score. Hard Inquiry: This occurs when a creditor, like a bank or a credit card issuer, checks your credit score as part of the application process for a loan or credit card. Hard inquiries can temporarily lower your credit score.

Your Right to Access Your Credit Report

It is your legal right to access your credit report and score. This service is provided by the three major credit bureaus: Experian, Equifax, and TransUnion. You can request a free report from each of these agencies once a year through If you have recently applied for credit and received a rejection, you are also entitled to a free report.

Can Checking Your Credit Report Impact Your Score?

Some people mistakenly believe that checking their credit report frequently can negatively impact their credit score. However, this is not the case. Your score may be affected by other factors, such as how much you earn versus how much you spend each month. Maintaining on-time payments and avoiding missed payments are the best ways to ensure a healthy credit score. In fact, regularly reviewing your credit report helps you to:

Catch errors early Detect signs of identity theft Ensure accuracy of the information

Best Practices for Credit Inquiries

While soft inquiries are safe, it's important to be mindful of the types of inquiries you make. For example, when applying for a mortgage, it's advisable to work with a mortgage broker who can guide you through the process. In the United States, mortgage brokers are licensed in the county where the target property is located, much like real estate agents. Here are some tips:

Limit Hard Inquiries: Each hard inquiry can temporarily lower your credit score. Try to limit the number of applications you submit for credit within a short period. Choose the Right Adviser: When seeking a mortgage, consult with a single mortgage broker rather than multiple ones. This is because all mortgage brokers typically share information with the same lenders. Prepare Thoroughly: Before approaching a mortgage broker, make a list of the banks you have already contacted. This information will help the broker streamline the process and avoid unnecessary inquiries.

Remember, maintaining a sound financial reputation is crucial. By staying informed about your credit score and staying vigilant, you can ensure that your financial health remains robust.