You’re ready to take charge of your finances (go you!), and checking your credit score seems like the perfect starting point. But then you pause—will doing so accidentally hurt your score? 

Here’s the deal as far as I am aware: Checking your own credit score, known as a soft inquiry, does not impact your credit score. In fact, regularly reviewing your score is a savvy move. It helps you stay informed about your financial health, track improvements and catch potential issues like errors or identity theft early. 

On the other hand, when a lender or financial institution checks your score during a credit card or loan application (hard inquiry), it can temporarily lower your score. Multiple hard inquiries within a short period may signal financial stress, which could make lenders cautious. 

Pro-tip for those of you who do points hacking: Even if you think you deserve gold stars all round for your controlled credit card usage (pay on time, never pay interest...etc), you need to be aware that if you are bouncing from one credit card to another for the points, that will show that you have made multiple credit applications and effect your score (I had some clients find this out the hard way back in the day when they went to apply for a home loan. For most of them, it was a nasty surprise!). 

If you’re eyeing a new rewards card, check your credit score first to ensure you’re likely to qualify. A strong score boosts your chances of approval and often secures better interest rates. To maximise benefits: 

• Space out applications (every 6–12 months or longer is ideal). 
• Keep your balances low and always pay on time. Obvs. 
• Focus on cards that align with your spending habits and offer ethical or sustainable rewards—because your points should reflect your values too! 

The research shows that spending on a credit card does something weird to our brain that see’s us not really see it as our own money, so the stats are clear – If you use a credit card for spending, you’re likely to spend more in general than people who use a savings account. If you must, maybe you can consider having all your regular bills and debits come from there, then you can set up an automation and don’t ever use the card for any discretionary spends.  

So, doing a soft inquiry is different to making a credit application and doesn’t impact your overall credit score. 

Jess

Have a money dilemma?

Money dilemmas can be a nightmare! They can leave you up all night ruminating about what to do, have you feeling alone and isolated or just plain ol' stuck. So, we are here to help. I am going to tackle one a week and give you my unbiased, no BS general thoughts on how to tackle your conundrum. We would love for you to send yours (or someone you know) in. 

Obvs all of this is general advice only... especially important to note any and all of the comments above do not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.