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What type of credit inquiry may damage credit score? Question: "Avoid too many inquiries - inquiries are interpreted as a sign that you have been actively seeking credit and could overextend yourself or may be in financial difficulty."
This was quoted from your site. Does this mean that if I check my credit score monthly then it will negatively affect my credit score or how the CREDITORs interpret my credit history?
Answer
No, it doesn't. When you personally check your Credit Report or score it does not affect your credit score and appear on your Credit Report as a soft inquiry. A soft inquiry does not affect your credit score.
The credit score is lowered only when a CREDITOR (not you) requests your Credit Report and a hard inquiry appears on your credit profile. Your credit score will lose up to five points with each hard inquiry. An excessive number of hard inquiries may indicate that a consumer is desperate for credit, which may be reflective of a credit problem. That's why is it recommended to open new credit accounts no more than 2 - 3 times a year.
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