Consumer Services

Ask The Advocate

• Will my credit score drop if I check my credit?
• If I close old accounts, will that improve my credit score?
• Once I satisfy an old bill, will that debt be removed as negative history on my credit report?

Will my credit score drop if I check my credit?
No, not at all.  Your inquiry is regarded as a “soft inquiry.” However, if a lender or creditor checks your credit, that’s a “hard inquiry,” which can cause your credit score to drop a few points.   But if several hard inquiries are made for the same purpose over a short period of time (a few weeks), these inquiries will be grouped together into a less damaging period of inquiry.

If I close old accounts, will that improve my credit score?
Closing old accounts will have just the opposite consequence – it will lower your credit score because your credit history will seem shorter.  It’s better to ask for your credit limit to be reduced, or alternatively, close newer accounts.

Once I satisfy an old bill, will that debt be removed as negative history on my credit report?
No, only the passage of time can assure its removal. A consumer reporting company can report most accurate account negative information, such as collection account activity, for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you've applied for more than $150,000 worth of credit or life insurance. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place.

You can find out what negative information is reported on your credit report by obtaining a free copy from each of the credit reporting agencies.