Credit Myths #3 -Every time your credit is pulled your score decreases
This actually depends on whether the person pulling your credit is doing a “hard pull” or a “soft pull”. Generally speaking any time you are applying for a new extension of credit you will receive a Hard Pull. Hard Pulls do affect your credit score but are not as detrimental as most consumers think as they only affect about 5% of your score. A Soft Pull is generally completed by a creditor for “Education Purposes” and has no derogatory effect on your credit score. Basically a lender uses a softpull to better educate themselves on your current credit standing. A credit card company may do a softpull before they send you a pre-approval letter. Likewise a lender that you already have credit with may do a softpull to make sure you are remaining a high level of credit worthiness compared to when you opened your original account with them.