A credit check is a process used by lenders, landlords, and other organizations to assess a person's creditworthiness. This involves reviewing a person's credit report, which contains information about their borrowing history, payment habits, and outstanding debts. A good credit score can help individuals secure loans or rental agreements, while a poor score may lead to higher interest rates or denied applications. There are two main types of credit checks: soft inquiries and hard inquiries. A soft inquiry occurs when someone checks their own credit or when a lender pre-approves an offer. In contrast, a hard inquiry happens when a lender evaluates your credit for a specific loan or credit application, which can temporarily lower your credit score.