Posted on: 13th Mar, 2007 07:33 am
Hi all,
I have heard people say that if your credit score is being checked often by other parties, it may create a negative effect in your credit report. Is this true?
If true, is this scenario valid only for third party checks. Will it affect if I check my credit score often?
Thanks in advance
I have heard people say that if your credit score is being checked often by other parties, it may create a negative effect in your credit report. Is this true?
If true, is this scenario valid only for third party checks. Will it affect if I check my credit score often?
Thanks in advance
Checking own score does not affect your credit score (it is known as soft inquiry) only inquiries made by potential loan providers can have an affect on your score (and are known as hard inquiries).
Boykin
Boykin
"I have heard people say that if your credit score is being checked often by other parties, it may create a negative effect in your credit report. Is this true?"
It does affect negatively if there are too many inquiries been made but it is not the sole reason which results in decrease of the credit score.
Noir
It does affect negatively if there are too many inquiries been made but it is not the sole reason which results in decrease of the credit score.
Noir
Rate comparison shopping done by you over a short period of time (generally 3 weeks or less) are considered together and have the same affect as a single inquiry.
It is also estimated that each hard inquiry can result in 5 point drop in your credit score.
While a few inquiries do not cause any harm, too many hard inquiries can result in reducing your credit score. Potential creditors can think that you are trying to spend more than what you can afford to if there are too many inquiries listed on your report.
Miller
It is also estimated that each hard inquiry can result in 5 point drop in your credit score.
While a few inquiries do not cause any harm, too many hard inquiries can result in reducing your credit score. Potential creditors can think that you are trying to spend more than what you can afford to if there are too many inquiries listed on your report.
Miller