Suhasini
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Many credit users are often scared to check their credit scores because they are worried that it will negatively impact their credit ratings. This has become a generalised rumour doing the rounds for some time now. As per financialexpress.com, less than half of all borrowers who take out consumer lo
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FAQ :
No, checking your own credit score or obtaining a copy of your credit report, known as a 'soft inquiry', does not negatively impact your credit rating. These checks are not visible to potential lenders.
A soft inquiry occurs when you check your own credit score or report, or when companies you already have an account with or those sending you marketing offers check your credit. These have no impact on your credit score.
A hard inquiry happens when a lender checks your credit history after you apply for a loan or credit card. These inquiries can have a negative impact on your credit score, typically subtracting 3 to 5 points from your FICO score.
Hard inquiries are generally visible on your credit report for a limited time, often remaining for 14-45 days, especially when making major purchases like a home or car.
If you already have a low credit score and are applying for new credit, it's advisable to avoid further credit applications that trigger hard inquiries, as this can further lower your score and make future applications more difficult.
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