Does Checking your Credit Score Lower it in Acton?

Does Checking your Credit Score Lower it in Acton?

Posted on July 9, 2021

Today we’re tackling one of the most common auto loan questions we get asked. ‘Does checking your credit score lower it?’ It’s a question we have answered before but it is still common enough that we are going to answer it again.

Our Acton auto loans team outlines what happens when you check your credit score and whether it has an impact on your score or not.

Checking your credit score in Acton

We strongly recommend checking your credit score every now and again. You’re entitled to one free check per credit bureau per year and we suggest using them.

A simple check of your credit score does not lower it. It uses what’s known as a soft inquiry. Only hard inquiries impact your credit score, even then it isn’t by much.

Soft inquiries

Soft inquiries, or soft credit checks, are what you use when you check your credit report. They are only visible to you when you make a check. If another organization performs a soft check, they can only see their own check and nothing else.

Soft inquiries are used for non-lending purposes, such as a credit check for a new phone or by a landlord for an apartment.

They don’t leave a trace so don’t impact your score.

Hard inquiries

Hard inquiries, or hard credit checks, do leave a mark on your credit report and can impact your score. They are visible to anyone who anyone who makes a hard check on your report because they are used for lending purposes.

The idea is to show when you were looking for credit so other lenders can be aware. Too many hard inquiries in too short a time could mean you’re trying to access a lot of debt at once, which is a red flag to lenders.

Any impact a hard inquiry on a credit report has soon recovers and will eventually disappear.

Credit checks and credit scores

If you want to maintain your credit score, try to minimize hard inquiries. As they are purely for lending decisions, that should be relatively easy to do.

If you’re planning on an auto loan, don’t apply for preapproval until you have found a lender and a rate you want to work with. Some use hard inquiries so will leave a mark.

Definitely don’t apply for an auto loan until you’re absolutely ready to do so. That also leaves a mark.

It’s the same for credit cards, personal loans and other finance. Only apply for those products you’re likely to take out. Perform your research ahead of time to minimize hard inquiries.

Check your credit report before you apply for something, which uses a soft inquiry. If you’re planning for an auto loan for example, prequalification only uses a soft inquiry.

Auto loan preapproval can include a hard inquiry so only get preapproved when you have a good idea that you’re going to get that loan.

Contact Unique Chrysler for help, advice and competitive Acton car finance and leasing.

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