- Dow Janes Knowledge Base
- Debt & Credit
What are the 5 factors in a credit score and does checking it lower it?
The five factors are: amounts owed, payment history, credit mix, new credit and length of credit. There is an overview in Self-Study or MDY step 9.6!
There are two types of credit checks:
Soft Inquiries: These are made by you or a company you authorize. Soft inquiries do not affect your credit score.
Hard Inquiries: These are made by lenders when you apply for credit, such as a credit card, loan, or mortgage. Hard inquiries can temporarily lower your credit score.