Debunking money myths: Does checking your credit score lower it?

One of the most pervasive money myths around there is that checking your credit score will lower or hurt it, leading people to avoid checking it altogether for fear that it may impact their ability to rent a flat, buy a house, or enter into a phone contract when they need one.

So is there anything to the fear that checking your credit score will hurt it? We asked the experts.

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Why is your credit score important?

Credit scoring is a widely used method for companies to assess the risk of lending money to people – if you have a history of managing money responsibly, you’re likely to have a good credit score. If you have frequently paid bills late, you may have a lower credit score which could affect your ability to acquire a loan in the future.

Having a good score is important because it will be checked if you want to apply for a mortgage, credit card, overdraft, or even for entering into a phone contract. If you have a low score, it might be more difficult to apply for loans.

Simon Dukes, CEO of Fair for You, a responsible lender specialising in helping people with poor credit, said: “Credit score matters because it helps ensure the loan you’re offered is affordable and right for your circumstances. It’s not about judging you, but about understanding your financial situation so we don’t lend in a way that could make things harder. For other lenders, a better credit profile may also increase the chance of being accepted and could improve future access to other forms of credit.

“Your credit score is usually checked as part of an application process, when you apply for a loan. Lenders may also use credit reference data to verify your identity and assess affordability. This happens quickly and securely, usually in the background while your application is being processed.”

Will checking your credit score lower it?

This is a very common myth, with a survey in 2023 by credit reporting company Experian finding 58% of those they questioned believing checking their score would have negative consequences. But is there anything to this fear?

The short answer is no. The longer answer is that checking your credit score is actually a helpful habit to develop.

Experian explained on its website: “We often get asked ‘does checking your credit score lower it?’ The answer is no. You can check your own credit score and credit report as many times as you like – it will never have a negative impact on your score.”

Fair For You’s Dukes added: “Checking your credit score won’t damage it and neither will the soft checks that companies run behind the scenes. These leave no mark on your report. A soft search is a preliminary review of your credit report that allows you to see if you are likely to be approved for a loan without affecting your credit file or score. These checks are quick, invisible to other lenders, and do not create a footprint on your credit history, making them safe for testing eligibility.

“It’s only hard checks, carried out when you apply for credit, that can temporarily lower your score.”

How can you raise your credit score?

There are many different ways to improve your credit score – and they can even be unexpected, like registering to vote.

Experian explains that the best ways to improve your credit score, as well as registering to vote, include: keeping your total borrowing as low as you can, not maxing out credit or store cards, making all of your monthly payments on time, not applying for lots of credit in a short space of time and paying any court judgements within one month.

For those who are new to the UK, Experian recommends opening a UK bank account, adding that even a “basic” account is fine. The company also recommends that people consider getting a credit card to be used for a small essential purchase and paid in full each month as well as checking your credit score often.

The company recommends that building your credit file slowly over time is a manageable way to improve it in the long term.

Dukes said: “Improving your credit score starts with keeping your use of credit as low as you can. You don’t need to avoid credit altogether. In fact, keeping up with repayments can help, but never maxing out what’s available to you shows lenders you’re not relying on credit to get by.”

He added: “It also pays to space out your credit checks and only borrow what you can genuinely afford. Lenders look at how much you’ve borrowed compared with your income, and too many hard checks close together can make it seem like you can’t afford what you need without credit.

“And don’t overlook the simple wins: register to vote so lenders can confirm your address, check your credit report for errors that could be dragging your score down and stay alert to fraud because recovering from someone else using your details can take even longer than fixing mistakes.”

Dukes underlined that you don’t need to “obsess” over your credit score, but “having a basic awareness means fewer surprises and better choices”. He said: “It’s less about the number itself, and more about what it tells you: how financially resilient and trustworthy you appear to others.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more. 

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