New Delhi, Aug. 25 -- If you are contemplating applying for a loan, it is common to first check your credit score. It is worth noting that checking your credit score leads to a soft inquiry. Whereas when you apply for a credit card or a loan, it leads to what is known as a 'hard inquiry'.

These inquiries - soft or hard - may have some implication on your credit score. When it is a soft inquiry, there is no impact on your credit score. And when it is a hard inquiry, it casts some spell on your credit score.

Soft inquiry: Ideally, it is recommended to check your credit score once in a year. This is important to check for any inaccuracy that needs to be spotted.

Hard inquiry: When you apply for a loan, the lender checks your credit score ...