Hydrocortisone Cream treats skin conditions like insect bites, allergies, eczema, psoriasis, and dermatitis. It reduces the swelling, itching, and redness that can occur in these types of conditions. The medication is a mild steroid. The drug should be applied on the skin or scalp only. Avoid using on the face or underarms unless directed by your prescriber. It is a topical steroid that works to reduce chemicals in the body that cause swelling. Hydrocortisone cream heals eczema symptoms such as sore and itchy skin. The treatment also comes as an ointment or lotion.