New Delhi, April 15 -- A pre-approval is often a common step to receive financial products such as credit cards, mortgages, or car loans. It is important you understand how these pre-approvals affect your score to ensure you are not compromising your financial health. This content will discuss the effects of pre-approvals on credit scores, explain soft and hard inquiries, and other tips about how to manage your credit profile correctly.

A credit inquiry happens when a lender or another organisation has requested to see your credit report to assess your financial behaviour. Credit inquiries fall into two categories:

A soft inquiry is usually needed in order to solicit a pre-approved credit card offer and it does not impact your credit sc...