Already on ArticleSlash?

Forgot your password? Sign Up

Credit Report Vs Credit Score


Visitors: 1,561
 1 vote

What is a credit report, credit score?

Many people use these terms interchangeably but there is a big difference between the two. A credit report is just but a nutshell of your credit use history while on the other hand a credit score uses the information in the credit report and assigns a number ranging from (300-900) showing lenders the probability of paying back a debt. The higher the score, the lesser the risks of defaulting.

Credit Report

A credit report shows personal information (name, address, social security number), what kind of credit you use, how long the credit line has been open, whether you have paid your bills on time (including any collection of information if a debt had to be passed on to a collection agency, how much credit you have used and what is outstanding, whether you have been looking to open sources of credit, i. e. any credit inquiries that have been made, banking information, public record (such as bankruptcy or a court-related judgment).

Lenders look at your credit report to determine if they should either extend or withhold your credit. It's basically a view of whether you pay back your debts or not. Its mandatory by law that everyone in the USA is allowed free access once every twelve months to their credit report from the three national credit reporting agencies that is EQUIFAX , EXPERIAN AND TRANSUNION. You should check your credit report yearly to make sure all of the reported information is correct and that there are no fraudulent accounts that have been opened in your name.

Credit Score

A credit score is primarily based on credit report information typically sourced from credit bureaus. Lenders use scores to determine who qualifies for a loan, at what interest rates, and what credit limits.

How are credit scores interpreted?

First step is to identify the source of the credit score and its use.

FICO produces and controls the vast majority of scoring models of the credit score in the United States. The interpretation of a credit score will vary with the lenders, industry, and the economy as a whole. All considerations about the score revolve around the strength of the economy in general and investors’ appetites for risk in providing the funds for borrowers in particular when the score is evaluated.


It is very clear there is clear-cut difference between credit report and credit finance and in their application in personal finance. With this knowledge of the commonly misused and misunderstood terms, it is likely that you will not only make informed decisions hence forth when it comes to personal finance, but also be proactive in approach.

A credit score is a definitive measure of your financial abilities and thus it becomes imperative to keep a check on the 3 credit report online . You can also get your free credit report monthly and track all the entries to avoid any discrepensies.


Article Source:

Rate this Article: 
Credit Report Repair - Boost Your Credit Score
Rated 1.0 / 5
based on 1 vote

Related Articles:

How is Your Credit Score Calculated? Understanding Credit Report Score

by: Altaf Sahibzada (January 02, 2008) 

Need a Higher Credit Score - Six Tips For Fast Credit Report Repair You Can Do ..

by: Darin Sewell (August 13, 2008) 
(Finance/Credit Tips)

Clean Credit Report: Easily Raise Your Credit Score 100 Points

by: Vincent Dail (January 16, 2005) 

Clean Your Credit Report You Can Easily Raise Credit Score 100 Points Or More

by: Bryan Burbank (July 26, 2008) 

Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report

by: Justin Smith (June 10, 2005) 

Free Credit Report - The Best Way to Check on Your Credit Score While Applying ..

by: Bob Randooke (December 16, 2008) 
(Finance/Credit Tips)

How to Quickly Improve Your Credit Score by Adding Positive Payment History to ..

by: Charles Phelan (December 06, 2005) 

Clean Your Credit Report You Can Raise Your Credit Score 100 Points

by: Bryan Burbank (July 22, 2008) 

The Advantages To Obtaining A Free Credit Report And Score - Verify Your Credit .

by: Tim Gorman (March 28, 2008) 

Credit Report Repair - Boost Your Credit Score

by: Jeffrey Cash (December 29, 2005)