Credit Report vs Credit Score
All this credit stuff can get pretty complicated.
But two things you should have a handle on are credit reports and credit scores. Each are important in their own right, and both are necessary to assess your overall standing as a consumer.
While the pair certainly overlap, they are two entirely different things.
Credit Reports
A credit report contains a wealth of information about you, including basics like your name, address, social security number, and employment history.
Additionally, your credit report will list your credit history, with information on the types of accounts you’ve got open, how long they’ve been established, what their associated balances are, and if they’re current or derogatory (collections, charge-offs).
Any recent credit inquiries will also show up on a credit report so creditors can determine if you’ve been shopping around for new credit.
While all this information can be very helpful to both consumers and creditors, both parties seem to be most interested in credit scores.
Credit Scores
A credit score is simply a three-digit number between 300-850 (credit score range) for Fico scores, and slightly higher for VantageScore.
Generally, a credit report will contain three credit scores, one for each of the main credit bureaus. These credit scores are based on the aforementioned information found in your credit report.
Without all that information, you wouldn’t have a credit score, so the two can’t really exist without one other.
These credit scores are simply a numerical representation of your credit risk, based on all that information.
So if you’ve got a lot of good information on your credit report, your associated credit scores should be high to reflect that. The opposite is also true.
Tip: If you order a free credit report from the official AnnualCreditReport.com, don’t expect to receive a credit score. Those are not included, and can only be purchased for an additional fee.
If you want a free credit score, consider enrolling in a trial credit monitoring program and canceling before incurring any charges.
Similar Posts:
- Why Credit Scores are Different?
- 3 Major Credit Bureaus ?Which One Should I Contact?
- How Often to Check Your Credit Report?
- How to Receive and Review a Free Credit Report
- Tips for checking your credit report
