Does Checking Your Credit Score Lower It?

Most economic experts consider credit scores as the most significant measure of an individual's financial capability; thus, many people ask the question, does checking your credit score lower it?
 

   
Knowing one's credit score is vital prior to applying for a major loan, such as an auto loan or mortgage. Through it, you can get an idea of your chances of securing loans and other like financial tools.

One must understand why credit scores were created and why they continue to exist. These numbers are primarily used by lenders to evaluate whether you are fit to get a loan. Insurers on the other hand use scores as reference when settings premiums. Cell phone companies check credit scores to determine if you can qualify for a contract. Even property owners use these numbers when deciding if a particular space is safe to be rented out to a potential tenant.

Does checking your credit score lower it? In most instances the answer is no. In fact irrational fear has fooled many people and discouraged them from knowing the exact figures in their credit reports. There have been instances of inaccuracies, which would either lead to denial for a loan or paying at a higher interest rate. Thus, it is important that you try to review your credit report annually to challenge any serious errors you might encounter.

So, does checking your credit score lower it? Checking one's credit score through a free credit report website would not lower your score at all. In fact, everyone has the right to demand for a free credit report every year from the three major credit bureaus. It makes no sense at all, if you would be penalized just by verifying your own score. Credit checks may only pose harm when you apply for a new credit such as a loan or a new credit card. Checking your credit score may also lower your chances of getting approved for higher credit limit. However, if you have a strong credit profile, these checks would have a minimal impact on you.

Now that you already have a good idea on the answer to the question, "does checking your credit score lower it?" you must now turn your attention to certain factors that can actually put a big dent on your credit score. The following may cause your credit score to drop -- high card balances and maxing out credit cards, late payments, too many in-store credit cards, and closing credit cards. Assuming moderation is practiced, most of the time financial experts would answer no to the question "Does checking your credit score lower it?"




  

Source: Credit Cards For People With Bad Credit Rating


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