New Delhi, June 26 -- Credit score is important for getting a loan approval. To maintain a good credit score, it is important to first keep track of it. And when you spot an error in credit score, it can be rectified. This checking of score in your credit report leads to a soft inquiry.

There is a misconception that a credit inquiry leads to loss ofcredit score. However, this happens when it is a hard inquiry and not a soft inquiry.

A hard inquiry occurs when a credit user applies for a loan. This leads to the loss of credit score. Applying for too many loans indicates that the user is too desperate for a loan.

However, this leads to marginal loss of credit score. A soft inquiry, on the other hand, does not lead to any loss. When someo...