A credit check is a process used by lenders to assess an individual's creditworthiness. This involves reviewing a person's credit report, which contains information about their borrowing history, payment habits, and outstanding debts. Credit checks help lenders determine the risk of lending money or extending credit to a borrower. There are two main types of credit checks: soft inquiries and hard inquiries. A soft inquiry occurs when a person checks their own credit or when a lender pre-approves them for an offer. A hard inquiry happens when a lender formally evaluates a borrower's credit for a loan or credit application, which can temporarily lower the borrower's credit score.