Transaction in which a bank or financial institution reviews an individual’s credit report relative to a loan or credit card application. The inquiry aims to verify an individual’s possibility to repay money lent to them or his creditworthiness. There are two types of credit inquiries: soft and hard. Soft inquiry is usually initiated by the individual and not logged on his credit report. Hard inquiry is recorded on a person’s credit report when a third party looks at his credit report in reply to his credit application.