Maybe you’ve wanted to check your credit score but hesitated. After all, could simply looking at your score cause it to drop?
The short answer is no. Checking your own credit score does not lower it.
Here’s what Canadians should know about checking their credit — and how to get started.
Does checking your own credit score affect it?
No. Checking your own credit score or credit report is generally considered a soft inquiry, also called a soft credit check.
A soft inquiry doesn’t affect your credit score.
That means you don’t need to avoid checking your own credit because you’re worried the act of checking will bring your score down.
What is a soft credit inquiry?
A soft inquiry is a review of your credit information that doesn’t affect your credit score.
Checking your own credit is a common example.
Soft inquiries can also occur in other situations where your credit information is reviewed without you applying for new credit.
The important part to remember is simple: checking your own credit doesn’t lower your credit score.
What is a hard credit inquiry?
A hard inquiry, sometimes called a hard credit check, is different.
A hard inquiry can occur when you apply for credit and a lender checks your credit as part of its decision.
This may happen when you apply for:
- A credit card
- A personal loan
- A line of credit
- A mortgage
- Certain other types of financing
A hard inquiry may affect your credit score.
That doesn’t mean you should avoid applying for credit when you need it. But understanding whether an application may result in a hard inquiry can help you make more informed decisions. Learn more about the difference between hard and soft credit inquiries here.
Why is it useful to check your credit?
Your credit information can play a role when you apply for financial products such as loans, credit cards and mortgages.
But you don’t need to wait until you’re applying for something to check it.
Reviewing your credit can help you:
- See where your credit currently stands
- Follow changes over time
- Review the information in your credit report
- Look for accounts or inquiries you don’t recognize
- Spot information that may need a closer look
- Become more familiar with your overall credit health
Checking regularly can also make credit feel less mysterious. Instead of only thinking about your credit when you need to borrow money, you can make understanding it part of your regular financial routine.
Can checking your credit help you spot unexpected information?
Your credit report contains information about your credit history.
Reviewing it may help you notice an account, inquiry or other information you don’t recognize. Unexpected information doesn’t necessarily mean fraud has occurred, but it can be a reason to take a closer look.
If you believe information on your credit report is inaccurate, you can contact the credit bureau that provided the report to learn about its dispute process.
How can you check your credit with Credit Karma?
Canada has two main credit bureaus: Equifax Canada and TransUnion Canada. You can access your credit information directly from the credit bureaus, or use a service like Credit Karma to help you stay on top of your credit.
Credit Karma isn’t a credit bureau. In Canada, Credit Karma members get free access to their TransUnion credit score and credit report, making it easy to see where their credit stands and follow changes over time.
Members also get free credit monitoring. Credit Karma monitors members’ TransUnion credit reports and sends alerts when it notices significant changes, helping you stay informed about activity on your credit report.
And you can check as often as you like without worrying about hurting your score. Checking your own credit through Credit Karma is a soft inquiry, which doesn’t lower your credit score.
Ready to start keeping an eye on your credit? Sign up for Credit Karma for free today.
Bottom line
Checking your own credit score won’t lower it. It’s considered a soft inquiry, which doesn’t affect your credit score.
Knowing where your credit stands can help you understand your credit information, follow changes and feel more informed about your financial picture. With Credit Karma, you can access your TransUnion credit score and credit report for free.