Not sure what the difference is between your credit score and credit report? Find out with this blog post!

Credit can be a confusing topic. There’s your credit score, credit report, three different credit bureaus, a variety of scoring models… it’s hard to keep track of it all! Well, we’re here to help clarify the mystery of credit. For this post, we’re tackling the difference between your credit score and credit report.  

What is the Difference between Your Credit Score and Credit Report?

April 14, 2017

Not sure what the difference is between your credit score and credit report? Find out with this blog post!

Credit can be a confusing topic. There’s your credit score, credit report, three different credit bureaus, a variety of scoring models… it’s hard to keep track of it all! Well, we’re here to help clarify the mystery of credit. For this post, we’re tackling the difference between your credit score and credit report.

Credit Report

 

What is a credit report?

Think about your credit report as the building blocks of your credit score. Your credit report is a detailed report of your credit history, which includes a wide range of information on your credit accounts, payments, and other financial data.

What is included on your credit report?

  • Personal information
  • Credit accounts, including auto loans, personal loans, credit cards, student loans and mortgages
  • Time of account openings and closings
  • Current account balances, credit utilization, and available credit
  • Payment history
  • Records relating to collections, tax liens, court judgements regarding debt, and bankruptcy
  • Credit inquiries-soft and hard

Who creates your credit report?

There are three separate credit-reporting bureaus: Equifax, TransUnion and Experian. Each of these companies use information provided by creditors such as banks, credit card companies, credit unions and mortgage lenders to create your credit report.

It’s important to note that creditors may pick and choose which of the three bureaus they report information to. This is why information on your credit reports may differ. 

Related article: 5 Reasons You Need to Check Your Annual Credit Report 

You can receive a free copy of your credit report from each bureau once per year at AnnualCreditReport.com.

Expert tip: pull your credit report annually from each credit bureau—one every four months to ensure you catch any changes or errors. Directions on how to get your credit report here


Who uses your credit report?

Your credit report plays a major role in many aspects of your life. It can affect loan offers, insurance rates, credit card annual percentage rates (APR), even whether you can qualify to purchase a home. So who might pull your credit report?

-Lenders for auto loans, personal loans, school loans or mortgages
-Banks and credit unions
-Landlords
-Insurance providers
-Utility companies
-Credit providers  

Credit Score



What is your credit score?

Your credit score is determined from the information on your credit report. You can think of your credit score as a quick snapshot of your “creditworthiness”. Lenders rely on your credit score to decide whether they will lend to you, how much to lend, and at what rate.

Creditworthiness: how likely you are to repay borrowed money; your current and future ability to handle credit responsibly, generally based on your credit score


What factors into your credit score?

                -Payment history
                -Credit utilization
                -Current balances
                -Types of credit
                -Length of credit history
                -Recent credit inquiries

Who creates your credit score?

There are many different credit-scoring companies, but the two major credit score providers are FICO and VantageScore. Each company uses its own complex mathematical algorithm to create your credit score from information on your credit report.

It’s important to keep an eye on your credit score, since it is a major part of your financial health and can change over time. Some financial institutions offer free FICO® scores, or you can use a site like Credit Karma—but do note that sites like Credit Karma provide an estimation of your credit scores; your real scores may be slightly higher or lower.

Keeping track of your credit report and credit score will help you understand your financial well-being.

Read next: Understanding Your Credit Score: FICO® Factors 

Who uses your credit score?

Lenders use your credit score when you apply for any type of loan, credit card, or mortgage. This will incur a hard inquiry on your credit report, which will affect your credit score slightly. Employers are not allowed to access employee (or potential employee) credit scores.

To sum it up:


Your credit score is a direct reflection of the information on your credit report. Treat credit responsibly and you will see your credit score rise over time. Check your credit report from the three reporting bureaus annually to review your information and catch any errors or possible fraud. You can do this through the site AnnualCreditReport.com

Would you like more information on how credit works and ways to improve your credit score? Scope out our top credit blog posts or sign up for our Blog digest so you never miss a post!

Top Financial Tips You Don't Want to Miss

Receive helpful and relevant financial advice every week with our Blog digest. Sign up now to unlock three helpful posts. 

Get It Now

Leave a Comment

 

*
*
*



 

Equal Housing LenderThis credit union is federally insured by the National Credit Union Administration.

Redstone is an Equal Credit Opportunity Lender.

This content is provided for informational and educational purposes only and considered accurate as of the date posted. Views and opinions expressed in comments do not constitute an official endorsement by Redstone Federal Credit Union® or its affiliates. Redstone encourages you to seek professional advice for your personal situation before making any financial decision and is happy to assist you at any of our branch locations.

Must be RFCU® member to obtain or use any product or service. Must open a share savings account to join RFCU. A $5 minimum balance is required to open a share savings account and must be maintained in the share savings account at all times. Age and other restrictions may apply.