Does checking credit history affect credit score?
As a borrower, you always come across a question like does checking Credit report affect Credit score. Such questions are frequent for many first-time borrowers and even for regular borrowers. These days applying for a Personal Loan is very easy. While you can get a loan easily, there are chances of misusing or overusing the same. This creates a burden on the individuals to repay it on time. Credit report keeps a track of your credit history which allows lenders to have a clear idea about creditworthiness. A credit score is a numerical representation of your credit behaviour. Credit score ranges between 300 and 900. It is commonly referred to by lenders before approving your loan application. If you check your own credit score, it is generally considered a “soft enquiry”. A soft enquiry does not affect your credit score in any manner. However, if a prospective lender accesses your credit score, it is considered a “hard enquiry”. Multiple such hard enquiries can adversely affect your credit score. Hence, it is advisable not to apply for a loan with numerous lenders. So, if your question is does checking Credit report affect Credit score, the answer is yes, if it is checked by prospective lenders and no, if it is checked by you. Along with checking your credit score by the lender, below are some other factors which might affect the credit score also:
- Repayment history
- Length of credit exposure
- Type of credit or loan accounts
- NPA accounts
