If a loan company checks my credit score can it lower my credit score?

Question

I applied for a loan last week and before I applied for the personal loan my credit rating was high but after applying for the loan my credit score dropped by 40.

Did applying for this personal loan cause my credit score to drop?

How can I get my credit score back up?

Answer 1

It's possible that applying for the loan could have dropped your credit score a little. I think they refer to this as hard inquiries.

Anytime you apply for credit or a loan your credit score is checked. Applying too much for credit can drastically lower your credit score so you should only apply for credit or loans when you absolutely need too.

Avoid applying for too many loans or credit cards.