The answer is yes and no. Lenders and Credit card issuers carry out two types of checks on your credit. The first, a soft credit check, doesn’t impact your credit score at all. The second, a hard check, knocks a few points off your score every time. We’re going to walk you through soft and hard credit checks and what they mean for your credit score.

Why Your Credit Score Matters

When deciding whether to give you a loan or a credit card, lenders and credit card issuers look at your score and credit history.

“A credit score is a number that rates your credit risk. It can help creditors determine whether to give you credit, decide the terms they offer, or the interest rate you pay,” says USA.gov. A higher score helps convince lenders that you’ll be able to make repayments in full and on time. They may agree to a bigger loan or larger credit limit as a result. A high score can even “make it easier for you to … rent an apartment, or lower your insurance rate.”

Lenders and creditors are less likely to approve you for a loan or credit if your score is lower. If they do, they might charge you more interest because of the higher risk.