7 Things About Checking Your Credit Score That Borrowers Must Know

Your Credit Score Matters:

Lenders check it before approving loans, credit cards, and interest rates.

1. Types Of Credit Checks:

Soft inquiry and hard Inquiry are two types of credit checks. Both of them affect your score differently.

2. Soft Inquiries Don’t Affect Your Score:

Checking your own credit score is a soft inquiry and has no impact.

3. Hard Inquiries Can Affect Your Score:

When you apply for a loan or credit card, lenders perform a hard inquiry.

4. Impact Is Usually Small:

Hard inquiries may lower your score slightly, but only temporarily.

5. Too Many Applications Can Be Risky:

Multiple loan or credit applications in a short time may worry lenders.

6. Monitoring Helps You Stay Safe:

Regular checks help detect errors or suspicious activity in your report.

7. Ideal Credit Score Range In India:

Credit scores typically range from 300 to 900. Higher scores mean better chances of approval.