When is your credit score pulled?

You may be surprised about some of the times your credit is pulled. We’ve provided a list below so you’re prepared for the next time you apply for a new loan or open an account, especially if you have frozen your credit.

A credit pull, also known as a credit inquiry, is when a third party views your credit report. As you will see in the list below, there are two types of credit inquiries. Only hard inquiries negatively affect your credit score. A hard credit inquiry happens when a potential lender checks your credit to determine whether or not you qualify for a loan and at what rate. (You can learn more by reading: Know the difference between hard vs. soft credit inquiries.)

Hard credit inquires

Your credit would be pulled if you apply for one of the following:

• Apartment rental
• Business loan
• Cable plan*
• Car loan
• Cell phone plan*
• Credit card
• Mortgage
• Paying for a rental car with a debit card*
• Personal loan
• Student loan
• Utilities*

Soft credit inquiries

A third party may view your credit score in the following circumstances:

• Alliant membership application
• Background checks
• Checking your own credit score
• Employment verification
• Insurance policies
• Opening a savings or checking account
• Preapproval offers: credit cards, insurance quotes, lenders, etc.

Let’s talk about the starred items

The starred items above are surprisingly sometimes a hard credit pull. A credit score is composed of a variety of factors, including whether or not you pay your bills on time. A cable, phone or utility company will do an inquiry because they want to do business with people who pay their bills.

 A rental car company will want to ensure you can pay for any damages to your car. To avoid this check on your credit, you can simply pay for a rental car using a credit card. Need more info? Read: The best way to pay for a rental car

If you are concerned about whether or not your credit score will be impacted, give the company a call. Often times an organization will be upfront on their application about how they pull credit. If you are still unsure, a conversation is always best.

The importance of good credit

Good credit will help you get better rates and more lending opportunities. A good credit score could even help you land your dream job. In order to ensure you have a healthy score and it stays that way, learn how your credit score is calculated and ways to build your credit score.