Will a Credit Report Damage My Credit?

Identification

According to MyFICO, your FICO credit score is based upon the data found in your credit report. Ten percent of the score measures how much new credit you've applied for lately, another 10 percent is the mix of credit types found on your report, 15 percent is the average length of your credit history, 30 percent is the amount of debt shown on the report and the largest percentage, 35 percent, reflects your payment history.

Significance

When you order a copy of your own credit report, it's not one of the factors considered in the calculation of your credit score and thus does not damage your credit in any way. Under the Fair Credit Reporting Act, consumers have the right to check their credit at any time. When you apply for credit, the lender obtains a copy of your credit report, otherwise known as a hard inquiry. It may cause your score to drop but only slightly, according to MyFICO.

Consideration

Under the Fair Credit Reporting Act, credit issuers and insurers have the right to view your credit file and obtain a copy of your credit report in order to send you credit offers. These types of inquiries are soft inquiries and they do not harm your credit, although a record of who accessed your credit file is on the report. If you want to stop such companies from viewing your credit file, you can visit the OptOutPrescreen website to opt out.

Applicable Law

It's important to know who accesses your credit file. In 2003, Congress passed the Fair and Accurate Credit Transactions Act that gives each consumer the right to receive one free credit report per year from the major bureaus: Experian, TransUnion and Equifax. You can order the reports from the AnnualCreditReport website. The site also lists a toll-free number and mailing address if you'd rather order your free reports by mail or phone. You can order all of the reports at once, or only one or two. It's your choice.