3 Answers to the most common questions about your Credit Score

Q: HOW DO I FIND OUT WHAT MY CREDIT SCORE IS ?

A: Many people only know what their credit score is because they have seen it on certain documents such as a loan statement or credit card bill. Credit Counselors and Credit Agencies usually charge fees to consumers for their credit information.

There are three ways that you can get your credit score:

  1. Checking your credit card or loan statements
  2. Using a credit score service
  3. Talking to a Counselor or a Counseling agency

Q: WHO CHECKS WHAT MY SCORE IS ?

A: Generally speaking, many companies and businesses can check your credit score if they have legitimate reasoning. The most common type of companies of that generally check consumer credit scores are:

  1. Banks
  2. Creditors
  3. Utility Companies
  4. Insurance Companies
  5. Housing Communities
  6. Collection Agencies

Q: WILL IT HURT MY CREDIT SCORE IF I LOOK AT IT ?

A: 

One of the most common misconceptions about checking your credit is that it will negatively affect your score. Checking your own score will not hurt you, but not all inquiries to your credit are good. There are two different types of credit inquiries, Soft and Hard inquiries.

Soft inquiries are typically not used for lending decisions. A person or company, sometimes as a background check uses them. Soft inquiries can be done at any time and will not affect your credit score at all. It is even recommended to occasionally keep an eye on your score so you know where you stand and are able to dispute any discrepancies.

Hard Inquiries can stay on your credit report for up to two years. This kind of inquire can highly damage your score depending on how often they occur. Hard inquiries are done when you are looking for a mortgage, auto loan and most unsecured debt like credit cards. Lenders pull your credit and score as apart of their application process to better determine whether you are eligible for credit or not. It is best to avoid constantly applying for new credit cards or having background checks done.

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