Does Checking Your Credit Score Lower It? Complete Truth

Many business owners feel nervous about checking their credit score because they assume it will lower their score. This idea is very common and often stops people from understanding their credit health or preparing for a business loan. 

So does your credit score go down if you check it? The simple answer is no. 

Checking your own credit score does not reduce your credit score in any way. You can check it as many times as you want without any negative impact. 

In this guide, we will explain why your score stays safe, how credit checks work, and how you can check your score easily using Tally Capital. 

Why People Think Checking Their Score Reduces It 

Most people confuse two different types of credit checks. One is harmless and the other can temporarily affect your score. Because of this confusion, many believe every check is risky. 

To understand this better, you need to know the two types of credit enquiries. 

Types of Credit Enquiries 

Credit enquiries are of two types. Each one has a different impact on your credit score. 

Soft enquiry 

A soft enquiry happens when you check your own score. It also happens when a lender checks your score for pre-approved offers without you applying for a loan.
A soft enquiry does not reduce your credit score. 

Hard enquiry 

A hard enquiry happens when you apply for a loan or credit card. The lender checks your report as part of the approval process. A hard inquiry can reduce your score slightly. 

This is the main reason people get confused. They assume the soft enquiry used for checking their personal score will have the same effect as a hard enquiry used when applying for credit. 

So checking your score through Tally Capital or from any credit bureau website does not harm your score. 

How Does a Hard Enquiry Affect the Score 

A hard enquiry may bring down your score a little because it shows you are actively looking for credit. Lenders do not want too many applications within a short period because it may indicate financial stress. 

However, the drop is usually small and temporary. If you pay your EMIs on time and maintain healthy credit usage, your score recovers quickly.

Why Checking Your Score Regularly Is Actually Good 

Instead of reducing your score, checking your credit score regularly can actually help you in many ways. Here is why it is useful. 

You get early warning signs 

If there is any issue such as a late payment or unexpected fall in your score, you can fix it before applying for a loan. 

You can track your improvement 

Regular checks show whether your habits are improving your score or pulling it down. 

You can spot errors 

Sometimes banks may report wrong information by mistake. If you check your score regularly, you can quickly report errors and correct them. 

You can prepare before applying for a loan 

If you know your score is low, you can improve it first. This increases your chances of loan approval. 

You stay financially aware 

Knowing your score gives you a clear picture of your financial discipline. 

How Does Credit Score Work When You Apply for a Loan 

When you apply for a business loan, lenders look at many factors, and your credit score is one of the first checks. Your repayment history, credit usage, past behavior and stability are all reflected in your credit score. 

A good score helps you: 

• Get loan approval faster 
• Receive better interest rates 
• Qualify for a higher loan amount 
• Experience a smoother application process 

A low score may lead to loan rejection or strict repayment terms. That is why knowing your score early is always beneficial. 

How to Check Credit Score Safely Without Any Impact 

There are many ways to check your score, but the safest and easiest method for business owners is through TallyCapital. 

You can check your credit score directly inside your TallyPrime platform with just a few details. It is fast, secure and has no impact on your score because it is a soft inquiry. 

You can also check your score on the TallyCapital website in a few simple steps: 

• Enter basic details like name, mobile number, email and PAN 
• Verify your mobile number 
• Get your complete credit score and insights instantly 

Since this is a self-check, it does not lower your credit score. 

What Does Not Affect Your Credit Score When You Check It 

Here is a quick list of what will not lower your credit score. 

• Checking your own credit score 
• Checking your credit score multiple times 
• Receiving pre-approved loan offers 
• Getting your score from credit bureau websites 
• Getting your score from Tally Capital 
• Viewing your loan eligibility 

These are all soft enquiries and have no negative effect. 

What Actually Affects Your Credit Score 

To avoid confusion, here are the things that actually lower your score. 

• Missing EMIs 
• Delayed payments 
• Using too much credit 
• Applying for many loans at once 
• Defaulting or settling loans 
• Having high outstanding balances Frequent hard enquiries 

Understanding this difference helps you use credit more wisely. 

Why TallyCapital Makes Checking Your Score Easier 

TallyCapital is designed for TallyPrime users who want fast financing and clear insights. It offers a secure way to check your credit score without harming it. 

You also get: 

• Easy credit score insights 
• Business loan eligibility check 
• Best loan offers from trusted lending partners 
• Smooth application with minimal documentation
• Fast approval and direct fund transfer 

This makes loan planning simple for small and medium businesses. 

Final Thoughts 

Checking your credit score does not reduce it. This is one of the biggest myths in the world of finance. A self-check is always a soft enquiry and has absolutely zero impact on your score. 

In fact, checking your score regularly is a smart habit. It helps you stay informed, catch errors early and prepare for future business loans with confidence. 

With TallyCapital, you can check your credit score safely and quickly right inside TallyPrime. It is simple, accurate and designed to help your business borrow better.