If you're using Credit Score, you might be wondering about the different types of credit checks and how they impact your credit score. Here's a simple breakdown:
Soft Searches
What they are: Soft searches are like a sneak peek at your credit report. They give lenders a general idea of your creditworthiness without diving into the full details.
Who does them: Soft searches are often performed when you check your own credit score (like with Credit Score), when a company checks your eligibility for certain products, or during some background checks.
How they affect you: The good news is that soft searches have no impact on your credit score. Lenders can't see them, so they won't affect your ability to get credit.
Hard Searches
What they are: Hard searches are more in-depth credit checks. They give lenders a complete picture of your credit history.
Who does them: Hard searches are typically done when you formally apply for credit, like a loan, credit card, or mortgage.
How they affect you: Hard searches leave a mark on your credit report that other lenders can see. Too many hard searches in a short time can temporarily lower your score, as it may suggest you're struggling financially or taking on too much debt.
Credit Score & Your Credit Score
When you check your credit score with Credit Score, you will see a consumer credit search which is always a soft search. This means you can check your score as often as you like without worrying about it negatively impacting your credit history.
Keep in mind
It's a good idea to be mindful of how many hard searches you have on your report. Only apply for credit when you really need it.
Check your credit report regularly (for free with Credit Score!) to spot any errors or signs of fraud.