How many points do you lose when you check your credit score?

Impact of Credit Score Checks on Your FICO Score

Regularly monitoring your credit score is crucial for financial well-being. However, concerns arise about the potential impact of credit checks on your score. This article explores the extent to which credit score checks can affect your FICO score.

Minimal Score Impact

In general, a credit check can temporarily lower your FICO score slightly, around five points. This is because credit inquiries are considered new credit applications, and multiple inquiries within a short period can be perceived as a sign of excessive credit-seeking, which can raise red flags for lenders. However, it’s important to note that this impact is typically minimal, especially for individuals with a strong credit history.

Duration of Impact

The impact of a credit check on your score is short-lived. It typically remains on your credit report for 12-24 months, depending on the type of inquiry. However, it’s worth noting that inquiries related to credit card or loan applications generally have a more significant impact than those resulting from soft inquiries, such as checking your score through a credit monitoring service.

Alternative Scoring Models

It’s important to remember that lenders may use different credit scoring models besides FICO. As a result, your score with one agency may not accurately reflect your overall creditworthiness. Some scoring models may give less weight to credit inquiries, while others may emphasize them more.

Best Practices

To minimize the impact of credit score checks on your FICO score, it’s advisable to:

• Limit hard inquiries: Only apply for credit when necessary and avoid applying for multiple lines of credit simultaneously.
• Space out inquiries: Allow sufficient time between credit applications to give your score time to recover.
• Monitor your credit regularly: Use credit monitoring services to track your score and identify any unauthorized or unwarranted inquiries.
• Dispute errors: If you notice inaccurate inquiries on your credit report, immediately dispute them with the credit bureau.

Conclusion

While credit score checks can have a slight impact on your FICO score, it’s generally minimal, especially for individuals with a strong credit history. By following best practices, you can minimize the effect of inquiries and maintain a high credit rating. Remember that lenders may use different scoring models, so it’s important to consider your overall creditworthiness beyond your FICO score.