New Delhi, May 24 -- Your credit report is nothing but your financial report card. This is a three-digit number that provides future lenders with a clear idea of your repayment potential and borrowing integrity. It plays a serious role in deciding your financial credibility.

Whether you apply for any form of new debt, such as a personal loan, home loan, car loan, credit card or even check your own credit report, an inquiry may be triggered on your credit report. This inquiry falls into two main types. Hard inquiries and soft inquiries.

Given that both involve checking your credit history and past financial performance, they still influence your financial profile very differently. If you are a new or a regular borrower, it is vital for y...