Does checking your credit score on Credit Karma lower it? This is a common question among individuals who are keen on monitoring their financial health. While it’s a topic that has sparked numerous debates, the answer lies in understanding how credit scores are calculated and the impact of credit inquiries.
Credit Karma is a popular online platform that allows users to check their credit scores from various credit bureaus. It’s a convenient tool for those who want to stay updated on their credit standing without incurring any fees. However, many people are worried that checking their credit score on Credit Karma might have a negative impact on their score.
Understanding Credit Scores
Before delving into the impact of checking your credit score on Credit Karma, it’s essential to understand how credit scores are calculated. Credit scores are based on a variety of factors, including payment history, credit utilization, length of credit history, types of credit used, and new credit accounts.
The Myth of Score Dings
One of the main concerns regarding checking your credit score is the myth of “score dings.” Some people believe that each time they check their credit score, it will result in a decrease in their score. However, this is not entirely accurate. According to the credit scoring models used by the major credit bureaus, soft inquiries, such as those made by you to check your own credit score, do not affect your credit score.
Soft vs. Hard Inquiries
It’s important to differentiate between soft inquiries and hard inquiries. Soft inquiries are those made by you or by companies that check your credit score to offer you pre-approved credit card offers or loans. Hard inquiries, on the other hand, are made when you apply for new credit, such as a mortgage, car loan, or credit card. Hard inquiries can have a temporary negative impact on your credit score, as they indicate that you are actively seeking new credit.
Checking Your Credit Score on Credit Karma
When you check your credit score on Credit Karma, you are performing a soft inquiry. Therefore, it will not lower your credit score. In fact, checking your credit score regularly can be beneficial, as it allows you to monitor your financial health and identify any potential issues early on.
Conclusion
In conclusion, checking your credit score on Credit Karma does not lower it. It’s a safe and convenient way to stay informed about your credit standing. By understanding the difference between soft and hard inquiries and how credit scores are calculated, you can make more informed decisions about your financial future.
