Opening a Social Security account is a prudent decision in planning for your financial well-being, and concerns about whether or how this process will affect your credit report or score are natural. Here, we offer a thorough discussion to reassure you.
In creating my Social Security account, the Social Security Administration (SSA) carries out an identity verification process that engages a third-party Identity Services Provider. This identity Services Provider does a “soft inquiry” as part of the identity verification process. Credit reports are not impacted by soft inquiries compared to hard inquiries. Such inquiries, usually done to establish the identity of an individual and not to seek credit, are recorded in the subject’s file but not shared with lenders or other creditors.
What is a Soft inquiry?
A soft inquiry transpires when a person’s credit report is checked for purposes other than assessing their capability to pay for anything (e.g., if it is to check the person’s identity or to see if they qualify for any financial offers) or when the person is not actively seeking credit. Such inquiries can be seen by the individual but not the lenders, and usually get erased from the credit history after 12 months.
How Soft inquiries work
Soft inquiries are initial requests made to consult an individual’s credit report. These requests often feature in every credit report for the sake of participant inclusion. These requests are not handled as per credit issuance requests cited in one’s credit score. These types of inquiries tend to get erased from a credit report after twenty-four months or so. For example, there is always a notice indicating that the SSA also did a soft inquiry, even if it does relate to one’s creditworthiness.
Why the SSA uses Soft inquiries
Soft inquiries are among the measures that the SSA undertakes to protect your identity. This means that the SSA has made it possible for people who have an account or are interested in making an account to verify information using this method. This protects personal information and prevents others from fraudulently using someone’s Social Security number for benefits or to open fake accounts.
Benefits of my Social Security account
Once your account is created, you gain access to several valuable tools and resources. These include the ability to:
- Review your earnings record to ensure accuracy.
- Estimate future Social Security benefits based on your work history.
- Request a replacement Social Security card in certain states.
- Check the status of your Social Security application if you’ve applied for benefits.
Additionally, creating an account prevents others from using your information to set one up fraudulently. This is a proactive way to protect your benefits.
Monitoring Your credit for peace of mind
Should you still have worries, you may check the status of your credit report in order to ascertain whether the soft inquiry from
Enrolling in a My Social Security account will not impact your credit score or credit history whatsoever as it is with the case of other social transactional accounts. Application for services with the Social Security Administration (SSA) incorporates the use of a non-damaging credit check nicknamed an “inquiry.” This is for instance done through services of third parties such as ID.me or Login.gov. This type of investigation is noted in one’s credit report, but since it is not the type of investigation lenders carry out to determine suitability of a borrower, it does not affect credit score as it is deemed soft and not hard.
What if you have a credit freeze or fraud alert?
In the event that your account is frozen or if there is a fraud alert in place, you can still proceed with the process of creating an online my Social Security account. However, you may be required to remove the freeze, or the alert for a short period through the Identity Services Provider. Or else, you can use the ID.me service to verify your identity and that would not require a temporary removal of the freeze. This way, the safety of your credit is assured as you utilize Social Security Services.
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Protecting your information
The SSA emphasizes that only you can create and use your Social Security account. Sharing your credentials with others is not allowed and could lead to legal consequences. If you’re concerned about your information’s security, the SSA follows strict protocols and encryption methods to protect your data.
Benefits of my Social Security account
Easier access to certain benefits of Social Security is possible by creating an account. You can check your earnings records, possible benefits, and even file a retirement or disability claim. This does not cost a dime and is very secure making it perfect for any individual who wishes to plan for their finances.
If you want to understand credit impacts further or how to create an account, the SSA website or your credit report provider’s website will help.
