: why does it hurt your credit score to get information about your credit score?
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Now, YOU can get information about your credit score without hurting your credit score at all. But if you go to a lender and ask them to get information, it dings it a little bit. Why? Well, because if you go to 10 different banks and ask for 10 different loans, bank 10 might be worried that if you have 9 other loans you might not be able to pay off the 10th. And you can “shop around” loans without doing a full credit check at various banks, so that shouldn’t be an excuse.
It hurts your credit score to fully pay off a loan. It hurts your credit score even more if you pay it off early. It absolutely tanks it if you never need one. What increases your credit score is how many loans you’re actively paying off. In other words, the credit score is a measure not of your finance syatus and skills, but of your value as an asset to the bank.
Unfortunately, it is an invention of malicious rich creeps to ensure the banks a steady flow of interest payments.
The more debt you have, the more likely you are to default on at least one of them. If you’re checking your credit score (other than through regular monitoring) you’re probably thinking of taking on more debt.
Now, bear in mind there are also “soft” and “hard” inquiries. When you do something like check your credit score through a service provided by a credit card or through the governmant-backed AnnualCreditReport.com that’s a “soft” inquiry and doesn’t impact your score. The assumption is that you’re just monitoring your score in that case. It’s only “hard” inquiries that are considered intent to incur more debt and ding your score.
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