Does checking your credit score lower it?

Maintaining a good credit score is key to securing a healthy financial future. Not only can it open doors to different lending options, but it may also improve your chances of approval for rentals and mortgages.

But does checking your credit score lower it? And is it bad to check your credit score regularly? It’s with questions like this in mind that we’ve pulled together the following guide. Packed with all the necessary credit score insights, we’ve got you covered.

Does checking your credit score affect it?

Does your credit score drop when you check it? Luckily, regular checks will have no negative impact on your score. This is because it’s a type of ‘soft’ search, rather than a ‘hard’ search. Your credit score is a signpost of your financial health, and it’s used by everyone from lenders to landlords to assess your creditworthiness. In other words, how reliable you are at managing your money.

So, before making a credit application of any kind, it’s recommended that you check your credit score for free with one of the three main credit reference agencies:

• Experian

• TransUnion

• Equifax

As well as checking before a credit application, it’s often a good idea to get into the habit of checking your score on a yearly basis. This will allow you to flag and dispute any potential inaccuracies and ensure it doesn’t dip into the bad credit score threshold. If you notice that your score has fallen, you can then take the necessary steps towards improving it.

This might involve things such as:

• Paying bills promptly

• Registering to vote

• Settling any outstanding balances

We’ve also got a full guide on how to improve your credit score if you’re looking for more guidance.

What is a soft credit check?

A soft check shows a top-level view of your credit history. This might occur when a lender checks to see whether you’re eligible for a certain product or interest rate, or when you check your own report.

Soft checks have no impact on your credit score and won’t be visible to lenders in the same way that hard checks are.

What is a hard credit check?

A hard search occurs when you apply for things such as credit cards or mortgages. During a hard search, lenders will take an in-depth look at your report, checking for negative marks such as overdue payments or debt collection.

Hard searches may impact your credit score in the short term, but the long-term impact will depend on your reliability when it comes to making repayments. Making prompt, regular payments can have a positive impact on your score over time, so it’s important to stay on top of what you owe.

A hard check will typically be visible for twelve months, and multiple hard searches in a short space of time could signal to lenders that you’re struggling financially. A soft check will be visible, but it won’t affect your credit score – so there’s no need to worry about how often you’re checking.

The importance of checking your credit score

Since checking your credit score is a soft inquiry, it’s perfectly fine to do it regularly. Here are just a couple of reasons why it’s important to check regularly:

1. Monitor your financial health: Your credit score is a good indication of your financial wellbeing, and regular checks allow you to know where you stand when it comes to credit applications. If you check before you apply, you’ll be able to work towards boosting your score if necessary (and avoid being rejected).

2. Catch errors or fraudulent activity: Keeping a close eye on your score can help you spot any potential errors or fraudulent activity early. If someone attempts to take out credit in your name, you’ll be able to dispute the inaccuracy as soon as possible and avoid long-term damage.
   

Moneyboat are here to help

So, perhaps you’ve checked your score and it needs a little improvement, but you’re in need of funds to tide you over in the meantime? Here at Moneyboat, we support customers across the credit spectrum, offering fair and flexible short-term loans ranging from £200 to £1500. We’re here to help you access credit quickly and at fair rates, but only if you’re eligible.

We assess each application on a case-by-case basis, ensuring you’re a good fit and protecting your credit score in the process. This credit check is a key part of our lending process. It allows us to ensure that you have adequate income and you don’t have a history of significant financial struggle.

And remember, while convenient, short-term loans aren’t a long-term solution. It’s a good idea to create a dedicated emergency fund for future unexpected expenses.

Your credit score is like a financial footprint, providing insight into your borrowing history and signalling to lenders how reliable you are when it comes to managing your money. You can check it as many times as you like without worry, and it’s a healthy financial habit to keep up. So, check regularly – especially before making an application for credit – and if necessary, work towards improving it.

If you’re looking for more insights and advice, explore our guides on how to get a mortgage with bad credit and can I get a credit card with bad credit?

Finally, if you’ve got additional questions or worries, you can always contact National Debtline or StepChange for free advice.