Credit Reports

Credit checks can affect your credit score. Checking your own credit is considered a “soft” pull and won’t have the negative affect as a “hard pull” will. It is best to pull your own credit report and not be afraid it will adversely affect your credit. Credit counseling agencies can pull your credit report, but if they do it incorrectly, it will count as a hard pull.

The difference between a hard pull and a soft pull on your credit score:
Hard pull

A hard pull is a credit inquiry type that does affect your credit score. You need to give permission for a lender to check your credit history and make what is known as a hard pull (aka-hard credit check). A hard credit check is noted on your credit history file by all three credit bureaus for other lenders to see. This type of inquiry can stay on your credit report for 1-2 years. Hard credit check inquiries can cause a 5 point drop in your credit score for about six months.

Soft pull

A soft pull is a credit inquiry that does not affect your credit score. Soft pulls (aka-soft credit checks) frequently occur and you may not even be aware it was done. A soft pull is noted on your credit history file but it is only for you to see and is not available for lenders to view.

A so-called “free” credit report may cost you on your credit score. When a credit counseling agency is assisting you and pulls your credit report, insist it is done correctly so that it is a soft pull. Instead of giving permission for a company to pull your credit report for free, see about pulling your own credit report.

When you pull you own credit report, you want to do it correctly so your credit record will recognize it as a soft pull. You will want to do the following:

1. Pull all three reports
2. Request them all at the same time

To have a true credit score you need all three reports, your credit score will be the middle number (highest and lowest are discarded).

Don’t hesitate to pull your own credit reports; it will not hurt your credit score when done correctly.