At first glance, credit scores and credit reports can sound like the same thing. They both have the word ‘credit,’ after all — and shouldn’t a score and a report be similar?
But it’s important to know that the two terms are distinct. One is made from data that the other provides, and you usually receive them from different institutions. Here’s the difference between credit scores and credit reports — and where you can expect to find each one.
Credit reports
Every credit score starts with a credit report. These reports, commonly compiled by either Equifax, Experian, or Trans-Union, detail all of your credit history, including:● Personal information like your name, address, birthday, Social Security number, and phone number
● Current and past credit accounts, like mortgages, installment loans, and credit cards
● The creditor, credit limit, account balance, and payment history of those credit accounts
● Any collection activity, liens, foreclosures, bankruptcies, civil suits, or judgments
● Companies that have requested your credit report
This information is the basis for your credit score. You can request a free credit report from each of the three agencies every year at AnnualCreditReport.com. Be sure to check for errors, as these can affect your credit score.
But keep in mind that your credit score won’t be on your credit report. For that, you have to contact other agencies.
Credit scores
After the three credit agencies compile your report, it’s ready to be examined and assigned a number: a credit score. But the credit agencies aren’t in charge of that — FICO is.
FICO is the most common credit score, used by 90% of top lenders. The top FICO number is 850, and the closer your score is to this number, the better. Lenders then use this score to help determine how risky it is to lend to you. This can impact approval and interest rates for everything from mortgages and credit limits to auto and student loans.
There are a few different ways to see your credit score:
● Check your credit card and other loan statements. Many credit card companies now show monthly credit scores on these documents.
● Browse credit score services. Some offer a “free credit score,” and sometimes it truly is free, paid for through advertising. But make sure to check the terms of service in case the benefit only comes with a trial period before the company bills you monthly.
● Buy your score directly from FICO. The company offers tiered services that can give you everything from your FICO® score to credit report access and identity fraud monitoring.
● Contact a non-profit credit counselor. These professionals can usually give you a free credit report and score and help you go over each.