Tuesday, November 5, 2013
People also incorrectly assume that checking your credit score lowers it—this is partly true. When applying for a loan or another open line of credit, creditors check your score to see if you are a viable candidate. This can penalize you and impact your score. Inquires made by you are not shown to creditors and will not lower your score.
In fact, it’s essential to know what your score is, because it can change at any time, and it impacts so many different areas of your life. Not paying your bills or making delinquent payments lowers your score and makes you undesirable to credit companies and advertisers. By consistently managing your score, you take the control back from creditors by knowing exactly how much you qualify for when it’s time to take out a loan or open a new line of credit.
Many companies have figured out ways to charge consumers for reporting on their credit scores. But, there is no reason to pay for this service as everyone has a right to this information, free of charge.
