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| *Ostroff, Fair and Company>>>Credit |
How come your credit score goes down everytime u do a credit check? |
How come your credit score goes down everytime u do a credit check? it shouldn't go down when you check your credit. It should only be going down when someone does a credit inquiry. It goes down because the assumption is that you are about to take out another loan/credit card etc so its just anticipating that. It shouldn't be affected by things like a background check like if an apartment does a criminal and credit check before you move in. If you see an inquiry that you did not autorize, report it to the credit agency. Companies are required to get your written permission before doing the type of inquiry that can affect your score, if they can't get proof that you autorized the inqury then they are required by law to remove it from your record. . Because your money does not generate more and more. Because the keep count of the number of credit checks, but not necessarily who's making the checks. As for as anybody who's looking at your credit report, the can only assume that you have applied for credit with every check. It shouldn't go down when you do a credit check on yourself, like your yearly free report. That is for your info and you have the right to view it once a year free of charge (www.annualcreditreport.com). If you say, apply for a credit card, insurance, car loan, etc and they run a credit report it will bring your score down a couple points. Unless you do it over and over again it will even itself back out again within a couple months (assuming you are still paying everything on time, etc). They also want to see if how many inquiries you have versus how many actual loans you received. If someone else turned you down, it begins to make a bank/loan co question why that person turned you down and if they should do the same, etc. Your credit score does NOT get effected when YOU check your credit online. That is simply not true. When a creditor pulls your score it can drop up to 5pts each time, but normally would only be about 2 or 3pts.And those pts. can be earned back quickly. Because credit scores are all about risk assessment. When there have been no new inquiries, obviously the status quo is being maintained. But when a new inquiry occurs, the model sits back and waits to see what's going to happen. Each inquiry represents a new account that might be opened - or there might be applications that are being denied for reasons that aren't apparent. All a credit score represents is a compilation of various risk factors - and a new inquiry represents new risk, from the scoring model's perspective. If your scores are good and the inquiries are infrequent and followed by transactions that are paid on time, the decrease in score should not be significant. |
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