Can checking your credit score harm your financial standing? The short answer is no. Regularly checking your credit score is beneficial to your financial health.

Let’s explore why monitoring your credit score is important and how it affects your financial well-being.

Checking your credit score doesn’t hurt your credit

Let’s dispel one of the biggest myths about credit scores: checking it often will lower your score. In reality, checking your credit in some cases is classified as a soft inquiry, meaning it does not impact your credit score. With soft inquiries, you can check your score as often as you like without worrying about negative consequences.

There are two types of credit inquiries:

• Soft inquiries: These occur when you check your credit score or a lender conducts a pre-approval check. Soft inquiries don’t affect your credit score.
• Hard inquiries: These happen when you apply for new credit. Hard inquiries can temporarily lower your score by a few points, usually around five, depending on the scoring model used.

So, while applying for multiple credit cards or financing options in a short period can negatively impact your credit, simply checking your score does not.

Benefits of checking your credit score regularly

Frequently monitoring your credit score is a good habit to develop. Here’s why:

1. You stay informed about your financial status

Your credit score reflects your overall financial behavior. Regularly checking helps you track changes and make better financial choices.

2. You catch errors and fraud early

Credit report mistakes are more common than you might think. A FTC study found that 20% of consumers have errors on one or more of their credit reports. By checking your score and reviewing your credit report, you can catch inaccuracies — such as incorrect late payments or fraudulent accounts — before they cause serious damage.

3. You’re prepared for major financial decisions

Awareness of your credit score can help you anticipate what terms you might qualify for before applying for a mortgage, auto financing, or credit card. If your score needs improvement, you can take proactive steps, such as paying down debt or disputing errors, before applying for credit.

How often should you check your credit score?

The right frequency depends on your financial situation:

• Monthly: Ideal for most people, as credit scores are typically updated at least once a month
• Quarterly: Suitable if you’re not actively working on improving your credit or applying for new credit
• Annually: The bare minimum is to check your credit score and credit report at least once a year

Where can you get a free credit report?

There are a few ways to obtain a report without paying a fee. AnnualCreditReport.com provides free credit reports from Experian, Equifax, and TransUnion once a year. Many banks and credit card issuers also offer free credit score monitoring as a perk for customers.

Why credit monitoring matters

Enrolling in a credit monitoring service can provide valuable real-time alerts about changes to your credit report. These services help you stay informed and take action where needed.

Safeguard your credit, protect your future

Checking your credit score is not bad — it’s one of the smartest things you can do to control your financial health. Regularly monitoring your credit can catch errors, prevent fraud, and position yourself for success.

If you’re looking to finance a vehicle, start your pre-qualification with Credit Acceptance today. Once pre-qualified, we connect you with dealers in our nationwide network who can help with credit-challenged buyers.