Difference between Credit Score and Credit Report
Credit is the means to secure economic action for one's own business, purchases such as cars and homes, and many other goods. But what exactly is the credit score and Credit Score and how can it help you? Difference between Credit Score and Credit Report Everything we are going to see in this post. Knowing the difference between a credit score and a credit report can help you manage your finances.
What is Credit Score
A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers.
What is Credit Report
A credit report is a detailed record of an individual's credit history. It is used by lenders to assess an individual's creditworthiness and is typically used when someone applies for a loan or credit card. The report includes information such as loan and credit card payments, outstanding balances, and credit inquiries. This information is collected by the three major credit bureaus, Equifax, Experian, and TransUnion, and is used to create an individual's credit score.
Difference between Credit Score and Credit Report
Let's See the Important differences between credit report and credit scores...
| Credit Score | Credit Report |
|---|---|
| A credit score is a three-digit number that is generated by a mathematical algorithm using information from a credit report. | The credit report is a detailed list of a person's credit history, which includes information such as payment history, current balances, and credit inquiries. |
| The credit score is used by lenders to assess the risk of lending money to a potential borrower. | A credit report does not include a credit score. |
| A credit score is a number that represents your risk to lenders, based on your credit report. | It is Detailed Credit History |
| Credit reports are 100% free. | Scores are not free, but they're cheaper than you think. |
| Credit Reports Include a Credit History | Credit Reports Include Personal Information |
| Credit Scores Are Three-Digit Summaries of Your Credit | Credit Reports Contain Public Records and Debt Collections Data |
Conclusion -
A credit score and a credit report are two different things. Your credit score changes with every change in your credit history.
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