Should You Keep Your Credit Score Private?

Your credit score is one of your most important financial metrics It gives lenders an idea of how creditworthy you are – whether you can be trusted to pay back debts on time,

A high credit score can help you get approved for credit cards, loans, mortgages, and more, often at better rates But a low score makes it harder to get approved or results in higher interest rates

So your credit score matters. But should you keep it private? Or is it okay to share it with others?

The Importance of Your Credit Score

Before deciding whether to share your score, it helps to understand why it’s so important in the first place.

Your credit score is calculated based on the information in your credit report. This includes:

• Your payment history – Have you paid bills on time? Late payments can lower your score.

• Amounts owed – How much do you owe on loans and credit cards compared to your credit limits? High balances relative to limits can lower your score.

• Length of credit history – In general, a longer positive history improves your score.

• New credit applications – Too many new accounts can lower your score.

• Credit mix – Having different types of credit (credit cards, installment loans, mortgages, etc) can help.

Lenders use your credit score to gauge risk. A high score signals you are lower risk and likely to repay debts responsibly. A low score means higher risk.

Since your credit score impacts your ability to access credit, it’s very important to maintain good credit health. Checking your own score doesn’t negatively impact it. But other inquiries do.

Who Can Access Your Credit Score?

While your credit score is private, certain entities are allowed to access it, including:

• Lenders – Banks, credit card companies, mortgage lenders can access your score when considering a loan or credit card application.

• Landlords – Landlords may check an applicant’s credit score to gauge their financial responsibility.

• Insurers – Insurance companies may use your credit-based insurance score to evaluate risk.

• Employers – Some employers check credit scores as part of a background check. However, they require written consent.

• Government agencies – Certain government agencies may access your credit report and score for legal purposes. For example, child support calculations.

• Yourself – You can easily check your own credit score. Doing so has no impact. Monitoring your score helps maintain good credit health.

So while your score isn’t completely private, access is limited to specific use cases where lenders or agencies require it to assess lending risk and creditworthiness.

The Risks of Sharing Your Credit Score

Even though certain entities can legally access your credit data, that doesn’t mean you should freely share your score. There are risks to consider:

• Financial judgments – Friends, family or colleagues may make unfair judgments about your financial responsibility if they know your score.

• Security concerns – Sharing your exact score could help scammers answer identity verification questions and access your accounts.

• Unsolicited offers – Lenders, credit card companies or debt consolidators may use your score to target offers to you. This could lead to excessive credit inquiries which can lower your score.

• Comparisons – You may feel pressure to compare your score with others. But every financial situation is different. Comparing scores often leads to unnecessary stress.

• Misunderstandings – Others may not interpret your score properly. For example, a 700 score is good, but someone else might wrongly think it’s bad if they’re unfamiliar with scoring ranges.

When Sharing Your Credit Score Makes Sense

In some situations, sharing your credit score is necessary or advisable:

• Applying for credit – Lenders will check your score when you apply for credit, so sharing it directly can give you an idea of your approval odds.

• Monitoring services – Signing up for credit monitoring gives companies access, but it helps you monitor identity theft.

• Preparing a mortgage application – Providing your score to a lender helps them assess your application accurately.

• Cosigning a loan – The lender will check the cosigner’s credit, so sharing scores allows you to determine affordability.

• Relationship planning – For major joint finances like a mortgage, sharing scores with a partner is prudent planning.

The key is only sharing your score when required or when it directly helps you navigate important financial decisions. Otherwise, keeping it private maintains security.

Tips for Keeping Your Credit Score Private

Here are some tips to maintain privacy around your credit score:

• Only share your score when absolutely necessary, like applying for a mortgage.

• Don’t post your score on social media or share it casually with others. That invites security risks and unsolicited marketing.

• If asked about your score, share the range (good, fair) rather than the number.

• Freeze your credit reports to block lenders from accessing your score without your consent.

• Monitor your own score regularly, but don’t feel pressured to share it with friends or family. If asked, politely decline.

• When sharing your score with relationship partners, explain context like scoring factors and ranges so it’s interpreted properly.

• Adjust privacy settings on financial accounts to limit access to credit data. For example, lock credit reports at Equifax, Experian and TransUnion.

The Bottom Line

Your credit score is a crucial metric in your financial profile and access to affordable credit options. While some lenders and agencies can view your score, it’s wise to otherwise keep it private and avoid oversharing.

Only share your actual credit number when completely necessary for a major financial application, like a mortgage, or with a relationship partner for joint planning. But don’t advertise your score on social media or in casual contexts, as that can invite security risks and marketing offers.

Monitor your own score routinely as part of maintaining your credit health. But aim to keep the number private. With caution, you can enjoy the benefits of good credit while maintaining privacy and security around your important financial data.