Your issue is the use of the FX soften / soft focus Jaydear which is not the o.p's problem.
I agree that creating a soft focus image does create border issues but these can be avoided by cloning the image then apply the effect. Select the original untouched image below it and export as true colour png or true colour bmp. This eliminates the border problems. There's no quality difference between png & bmp, just that png creates smaller file sizes.