New Delhi, Feb. 5 -- To build and maintain a good credit score, you must access your credit report and score and monitor it regularly. Similarly, when you apply for a credit product, the financial institution has to access your credit report and score. Depending on who accesses your credit report and score, you or the financial institution, and under what circumstances, determine whether it is a soft or a hard inquiry. In this article, we will understand what a soft and a hard inquiry is and how it affects your credit score.

When you apply for a credit product like a loan or credit card, the financial institution (bank or NBFC) has to access your credit report and score. It is known as a hard inquiry. The credit score is one of the impor...