Is it OK to check your own credit score?

Keeping Tabs on Your Credit: Is Checking Your Score Okay?

In today’s financial landscape, your credit score is a crucial number, influencing everything from loan approvals to insurance rates. But how often should you check it, and is it even safe to do so? The short answer is: yes, regularly checking your credit score is generally okay, provided you do it the right way.

The key lies in understanding the distinction between “soft” and “hard” inquiries. Soft inquiries are checks on your credit report that don’t affect your score. These are typically performed when you check your own credit score through authorized channels like your bank’s website, a credit monitoring service you subscribe to, or even when a potential employer requests a credit report as part of a background check (with your consent). These gentle probes leave no trace on your credit history, allowing you to monitor your financial health without penalty.

However, “hard” inquiries are a different story. These occur when you formally apply for credit, such as a loan, credit card, or mortgage. Each hard inquiry leaves a small footprint on your credit report, and multiple hard inquiries within a short period can temporarily lower your score. Lenders see a flurry of hard inquiries as a potential red flag, suggesting you might be overextending yourself financially.

Therefore, while regularly reviewing your score through legitimate soft inquiry methods is a responsible practice, avoid repeatedly applying for credit just to check your score. The potential negative impact on your creditworthiness outweighs the benefits.

Think of your credit report and score like your health checkup. Regularly monitoring your blood pressure or cholesterol doesn’t harm you, just as regularly checking your credit score through soft inquiries won’t hurt your credit. But repeatedly undergoing invasive medical procedures solely for monitoring purposes would be detrimental; similarly, applying for numerous credit accounts just to see your score will likely damage your credit health.

In conclusion, responsible credit management involves understanding the nuances of credit inquiries. Regularly checking your credit score via authorized soft inquiry methods is not only acceptable but encouraged, empowering you to identify and address potential issues proactively. Just remember to be mindful of hard inquiries and avoid unnecessary credit applications solely for score-checking purposes. By understanding this simple distinction, you can maintain a healthy credit profile and secure your financial future.