Keep Credit Score Checks to “One and Done”
You may have noticed how much credit scores are beginning to matter; people are starting to ask for them the way they used to ask for social security numbers. And while everyone knows that giving out your social security number to the wrong person can end in identity theft and ruined credit, not everyone is aware that checking your credit score too often—even just two or three times in the same year—can also end in a lowered score or ruined credit. So it’s important to have a plan in place to protect your credit score. To show you how quickly and quietly your credit score can be harmed, consider the following story.
A client of mine was looking for a new car, and so went car shopping. Without asking for permission to do so, the dealer pulled my client’s credit score to determine whether or not my client was a safe risk. Let me point out now that this dealer wasn’t wrong to want to see my client’s credit score—any lender is going to want to know if a potential buyer can be counted upon to pay off his or her loans, and they should be able to get back that money they lent. However, to not ask permission to pull my client’s credit score was a bad business practice—one all too common when a company like a dealership, where time can be money, wants to know if a potential buyer is “worth it”—and anyone looking to make a big purchase like a car should be aware of this and plan ahead somehow.
In this case, my client had taken the precaution of purchasing LegalShield’s IDShield protection plan. As a result, my client was quickly alerted to the credit check and that it was potentially harmful, and IDShield’s protections kicked in to prevent my client from losing credit points that could have cost them a better interest rate.
My client’s story had a happy ending. Unfortunately, it’s the less common ending to have. Get IDShield now and ensure that you, too, have a happy ending when you discover that you or lenders have—regardless of the reason—made one too many checks on your credit score.