Why does your credit score go down just because a creditor looks at it?

Question

Even when I look at my credit score it makes it go down...why?

Answer 1

Pulling credit "scores" will not drop your scores at all.
Having your credit "report" pulled could drop your scores.

Everytime you apply for credit (and sometimes when you request a credit increase on an existing card) they will make a hard pull on your credit. A hard pull will drop your scores from around 2 to 7 points (sometimes more).

When you look at your own credit, that would be a soft pull and does not drop your score. Unless - you have a company pull your credit for you, then it would be a hard pull.

Answer 2

If it's an existing creditor, I don't believe the score goes down. Creditors of existing accounts are allowed to do periodic checks without your permission (permission is included in the contract you have with them).

But if there is an inquiry from a creditor with which you do not have an account, I think it affects your score a little. There is an assumption here that you applied for credit with this company and you were turned down.

If the inquiry or peek is promotional, it had no affect on your score at all. Creditors pay the credit reporting agencies for list of consumers wqho meet certain criteria, for promotional mailings. After you apply, they then actually look at your report.

Remember that the credit reporting agencies are not your friend. They make their money from creditors, not consumers. The only reason they even cooperate with consumers is because the law requires them to.

Answer 3

Your credit score is determined by a computer modelling program. The program takes into consideration all the factors in your credit history. Your credit score is actually a snapshot of your credit score at the exact second it was pulled. If you had pulled a second sooner, it could have been higher, a second later, lower. The credit score is not a hard and fast score.

When you apply for a new credit account or loan, an inquiry is made on your account. That in itself doesn't figure negatively into your credit score, but if there are a high number of inquiries, it will stand out to the computer modelling program, and it will potentially lower your score.

Try to limit the number of loans you apply for, and the amount of people you give permission to check your credit. This way the chances of your "snapshot" credit score being higher is bettr.

Answer 4

Because creditors look at it before extending you credit. If you are applying for a lot of different credit all at once they know you're not a good risk. You might be in financial difficulty. It does not go down that much if its only one or two creditors checking. And after a year it kind of dissappears.

Answer 5

When a creditor looks at your credit report, your score goes down as a warning to other potential creditors that you have applied for credit that is not showing up on your report yet. It will only go down if you have actually applied for credit, not for those "pre-approval" companies looking at who would be a good sucker...er..customer. It also does not go down when you look at your own credit report.

Answer 6

i look at my credit score occassionaly and it has never gone down. maybe applying for to much credit will make it go down if you know you cant get it dont apply inquries show up as well and some creditors can view them as well.