Does it hurt your credit score if an outside party checks your credit? If so why?

This depends on how many credit checks you are doing within a one year to six month period. One thing that creditors look at when they pull your credit is how many people have pulled your credit. A lot of credit inquiries means %26quot;this person is trying to go into a lot of debt%26quot; to a creditor. Of course, if you have multiple inquiries for a car purchase or home purchase, they are counted as one and do not affect your credit as badly. Basically, only the last twelve months are shown, so the fewer you do, the better your credit does.

Hope this helps.

Does it hurt your credit score if an outside party checks your credit? If so why?

Every time you apply for credit and a lender pulls your report your score goes down between 3-5 points unless it%26#039;s for a car or home and then all pulls within a 14-day period are lumped together and only count as one, they all show but your score only gets dinged once.

Why? That%26#039;s simply the way the scoring systems are set up, by applying for credit it shows that you are looking at taking on additional debt so your score gets dinged.

All inquires will show for 24-months but only affect your score for the first 6.

Does it hurt your credit score if an outside party checks your credit? If so why?

Your score will take a hit of a few points because your going to take on additional debt. If this happens to often in a short period, the hit will be larger because creditors could feel your already overextended!

The exception here would be shopping for a home or car loan in a 14 day period. your free to shop around for the best deal and all inquiries of this type and for these reasons count as one continous inquiry.

For an explanation of how credit scoring works, go to my website and read that section, It%26#039;s too long to post here!

Does it hurt your credit score if an outside party checks your credit? If so why?

What everyone else failed to mention, if they are checking your credit without your permission, then it does not hurt your score. For instance for all of those credit card and automobile screenings your receive in the mail. They do not reflect on your score at all.

Only the ones you give permission to.