A credit check is a process used by lenders to assess an individual's creditworthiness. It involves reviewing a person's credit report, which contains information about their borrowing history, payment habits, and outstanding debts. This helps lenders determine the risk of lending money or extending credit to that person. 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 credit application, which can temporarily lower the individual's credit score.