Your checks and credit applications
| Doesn’t affect your score | Can lower your score a little |
|---|---|
| Getting your own credit report or score | Applying for a credit card or loan |
| Quotes and rate checks that use a soft check | Applying for a home loan |
| Your existing lenders’ reviews | Applying for buy now pay later or a phone plan |
Why the myth sticks
When you apply for credit, the lender looks at your credit report, and that look is recorded. Checking your own report looks similar, so people assume it counts too. It doesn’t: your own check isn’t recorded as a credit enquiry, and it isn’t counted in your score.
How much does applying cost?
Each credit application is listed on your report as an enquiry, with the type and amount, and stays there for 5 years. One or two are normal. Many in a short time can suggest you’re under financial pressure and lower your score.
- Hardship arrangements Not used to work out your score
- 1 year
- Repayment history Each month: on time or how late
- 2 years
- Credit applications Each one, with the type and amount
- 5 years
- Defaults Even after you’ve paid them
- 5 years
- Serious credit infringements A lender can’t contact you and believes you won’t repay
- 7 years
Checking your own report or score isn’t recorded as an application. Bankruptcy and debt agreements are listed for at least 5 years.
Compare before you apply. Comparison sites and lenders that offer a quote with a soft check let you see your rate without an enquiry being recorded. Then apply for the one you want, rather than several at once.
Why you should check
Checking regularly helps you spot mistakes and identity fraud early, such as a loan you didn’t take out or a default you were never told about. You can get your report free from Equifax and Experian every three months. Lenders don’t all use the same bureau, so check both.
When you check, look for:
- Personal details that are wrong, such as an old name or an address you’ve never lived at.
- Accounts or applications you don’t recognise. They can be a sign someone is using your identity: contact the lender, and IDCARE (1800 595 160) for free help. You can also ask each bureau to put a ban on your report.
- Late payments or defaults that don’t match your records.
If you find a mistake, ask the bureau or the lender to fix it. It’s free, so there’s no need to pay a credit repair company.
Other myths about credit scores
- “Paying a default removes it.” It stays for 5 years, but it’s updated to show it’s paid.
- “My partner’s bad credit drags mine down.” Only if you share credit, like a joint loan or card.
- “Having no credit is the same as good credit.” With no history, lenders have little to go on. Paying a small card on time builds a record.
More on what does move your score: credit scores explained.