Credit Checks

Does Checking Your Credit Score
Hurt It?

It's one of the most common questions we get, and the answer is simple: no. Checking your own credit score does not hurt it. Not even a little. But the nuance matters, so let's break down exactly what's going on.

Two Types of Credit Checks

In Australia, there are two types of credit checks - soft enquiries and hard enquiries - and they work very differently.

A soft enquiry happens when you check your own credit report, or when a lender does a preliminary review without a formal application. Soft enquiries are recorded on your file but are not visible to lenders and have absolutely no impact on your credit score.

A hard enquiry is triggered when you formally apply for credit - a home loan, car loan, personal loan, credit card, or even some buy-now-pay-later accounts. These are recorded on your file, are visible to lenders, and can affect your score. So when someone says "checking your credit score hurts it," they're confusing the two.

How Long Does a Hard Enquiry Stay on Your File?

In Australia, hard credit enquiries stay on your credit report for five years from the date they are recorded. During this time, lenders reviewing your credit file can see past credit applications, even if they were declined or you chose not to proceed.

A single hard enquiry typically has a small impact on your score. On average, a hard credit check might take between five to ten points from your credit score. That's generally not significant on its own. The problem arises when there are multiple enquiries in a short period - lenders may interpret this as a sign of financial stress or repeated rejections, which can make them more cautious about approving your application.

How to Check Your Score for Free

Under the Privacy Act 1988, Equifax and Experian must each provide you with a free copy of your credit file every three months. Note that Illion and Experian have now merged, so there are effectively two main bureaus to check rather than three.

Curious where your credit score sits? Get in touch and we can walk you through what it means for your borrowing capacity.