What a credit check actually is, and who can run one
A credit check is when someone looks at your credit report — a record of how you have borrowed and repaid money — to decide whether to lend to you or what terms to offer. The three major credit bureaus (Equifax, Experian, and TransUnion) collect this information and sell reports to lenders, landlords, employers, and insurance companies. You can also request your own report yourself, which is free once a year from each bureau.
When you explore for a credit card, mortgage, car loan, or apartment, the lender or landlord will almost certainly run a credit check. Some employers and insurance companies do too. Each time someone checks your report, it creates a record called an inquiry. Hard inquiries (the kind that happen when you explore for credit) can slightly lower your score for a few months. Soft inquiries (when you check your own report, or when a company pre-screens you for an offer) do not affect your score.
Your credit score is a three-digit number — usually between 300 and 850 — that summarizes your credit history. It is calculated from your payment history, how much debt you carry, how long you have had credit accounts, and a few other factors. Different scoring models exist (FICO is the most common), and different lenders may use different versions. This is why your score might vary slightly depending on where you check it.
Key Takeaways
- You can get your credit report free once a year from each of the three bureaus at annualcreditreport.com, which is the official government site.
- Your credit score is separate from your credit report; the report is a detailed history, and the score is a number that summarizes it.
- Checking your own credit report does not hurt your score, but when a lender checks it (a hard inquiry), your score may drop slightly for a few months.
- If you find errors on your report, you can dispute them directly with the bureau that reported the error, and they must investigate within 30 days.
How to get your free annual credit report
The federal government requires each of the three credit bureaus to give you one free report per year. The official way to get it is through annualcreditreport.com — this is the only site authorized by the Federal Trade Commission for this purpose. Do not use other sites that claim to offer free reports; many will ask for your credit card number and sign you up for paid monitoring services.
On annualcreditreport.com, you can order your report from one bureau, two bureaus, or all three at once. You will need to provide your name, address, date of birth, and Social Security number. The site will verify your identity by asking you security questions (usually about past addresses or accounts). Once verified, you can view, print, or read your report when ready. Each report shows your payment history, current debts, public records (like judgments or liens), and a list of recent inquiries.
You can request your free report once every 12 months from each bureau. Many people spread them out — checking one bureau every four months — so they can monitor their report throughout the year without paying. Others request all three at once to get a complete picture before explore for a major loan.
Where to find your credit score
Your credit score is not included in your free annual report from annualcreditreport.com. The bureaus sell scores separately. However, you have several free options for checking your score without paying.
Many credit card companies and banks now show your score free in your online account — check your card's website or app to see if yours does. Credit monitoring services like Credit Karma, NerdWallet, and Experian's own free service also show your score at no cost, though they make money by showing you ads or offers for credit products. These free scores are usually accurate enough for your own planning, though they may use a slightly different scoring model than the one a lender will use when you explore.
If you want the exact score a lender will see, you can buy your FICO score directly from myfico.com for around $20. This is useful if you are about to explore for a mortgage or other major loan and want to know exactly where you stand. For most everyday purposes, the free score from your credit card or a monitoring service is sufficient.
What happens when a lender checks your credit
When you explore for credit — a loan, credit card, or apartment — the lender will run what is called a hard inquiry or hard pull. This appears on your credit report and can lower your score by a few points, usually for about three to six months. Multiple hard inquiries within a short time (like two weeks) for the same type of credit often count as a single inquiry, so shopping around for a mortgage or car loan does not hurt you as much as it might seem.
The lender will see your full credit report, which includes your payment history, current balances, credit limits, and any negative marks like late payments or collections accounts. They use this information plus your income and employment history to decide whether to lend to you and what interest rate to offer. A higher credit score usually means a lower interest rate.
You have the right to know if a credit check led to a denial or worse terms. If a lender denies you or offers you less favorable terms based on information in your credit report, they must tell you which bureau they used and give you a way to contact that bureau to dispute errors.
How to dispute errors on your credit report
Credit reports contain mistakes more often than many people realize — wrong account balances, accounts that do not belong to you, or payments marked late when you paid on time. If you find an error, you can dispute it for free.
Start by contacting the credit bureau that reported the error. You can do this by mail, phone, or online through their website. You will need to explain which item is wrong and why. The bureau must investigate your dispute within 30 days and contact you with the results. If the error is confirmed, they will remove or correct it. If the investigation finds the information is accurate, they will tell you why.
You can also contact the company that reported the information (your bank, credit card company, or creditor) and ask them to correct it with the bureau. Sometimes the error is on their end, and they can fix it faster than the bureau can investigate.
Keep copies of everything you send — letters, emails, proof of payment if you are disputing a late payment, or documentation of identity theft if an account is fraudulent. The bureau must keep records of your dispute, and you may need proof later if the error reappears.
Understanding hard inquiries versus soft inquiries
Not every credit check is the same. A hard inquiry happens when you explore for credit and the lender pulls your report to make a lending decision. Hard inquiries appear on your credit report and can lower your score. They stay on your report for about two years, though they stop affecting your score after a few months.
A soft inquiry happens when you check your own report, when a company pre-screens you for an offer (like a credit card offer in the mail), or when an existing creditor reviews your account. Soft inquiries do not appear on the version of your report that lenders see, and they do not affect your score at all. This is why checking your own credit report is safe and free — it is always a soft inquiry.
If you are planning to explore for multiple loans or credit cards, try to do it within a short window (usually two weeks). Multiple hard inquiries for the same type of credit in a short time often count as one inquiry for scoring purposes, which minimizes the damage to your score.
What to do if you suspect identity theft
If you see accounts on your credit report that you did not open, or if you notice inquiries from companies you never applied to, you may be a victim of identity theft. This is a serious problem, but there are steps you can take.
First, place a fraud alert with one of the three credit bureaus by phone or online. The bureau you contact will notify the other two. A fraud alert tells lenders to verify your identity before opening new accounts in your name. It lasts one year and is free. If you believe you are actively being targeted, you can request a credit freeze, which locks your credit report so no one can open new accounts without your permission. A freeze also lasts until you remove it and is free under federal law.
Next, dispute the fraudulent accounts directly with the credit bureau. Document everything — the accounts that are not yours, the inquiries you did not authorize, and any communications with the bureau. You may also want to file a report with the Federal Trade Commission at identitytheft.gov and consider filing a police report, especially if the theft is extensive.
Frequently Asked Questions
Does checking my own credit hurt my score?
No. When you check your own credit report or score, it is a soft inquiry and does not affect your score. You can check as often as you want without any penalty. Only hard inquiries from lenders (when you explore for credit) can lower your score.
Why is my credit score different on different websites?
Different scoring models exist, and different lenders use different versions. FICO Score, VantageScore, and industry-specific scores all calculate slightly differently. Your score may also vary depending on which credit bureau's data is used, since each bureau has slightly different information. The differences are usually small, but they can add up.
How long does a hard inquiry stay on my credit report?
Hard inquiries stay on your report for about two years, but they stop affecting your score after a few months. Lenders can still see them, but they matter less and less as time passes. This is why older inquiries have almost no impact on your score.
Can I remove a hard inquiry from my credit report?
Hard inquiries are legitimate records of when you applied for credit, so they cannot be removed just because you want them gone. However, if an inquiry is fraudulent (from a company you never applied to), you can dispute it with the credit bureau and ask them to investigate whether it was authorized.
What credit score do I need to get approved for a loan?
It depends on the type of loan and the lender. Credit card companies may approve scores as low as 580, while mortgage lenders often want 620 or higher. Some lenders specialize in lower scores but charge higher interest rates. The best way to know is to check your own score first, then research lenders that work with scores in your range.