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Credit Report vs Credit Score - What’s the Difference?

Credit Report vs Credit Score - What’s the Difference? 4/13/18Is a credit report the same thing as a credit score?  No.      

The Consumer Financial Protection Bureau (CFPB) explains that a credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts, and that your credit scores are calculated based on the information in your credit report.

CFPB points out that your credit score, as well as the information on your credit report, are important for determining whether you’ll be able to get a mortgage, credit card, auto loan, or other credit product, and the rate you’ll pay.

An individual can have many different credit scores, and there are many ways to get a credit score. Scores can differ depending on which credit reporting agency provided the information, the scoring model, the type of loan product, and even the day when it was calculated. Higher scores reflect a better loan paying history and make you eligible for lower interest rates.

Errors on a person’s credit report can reduce their score artificially - which could mean a higher interest rate.  For that reason, it is important to check your credit report and correct any errors well before you apply for a loan.

April is Financial Capability Month.  CFPB provides accurate, reliable information and answers to questions about how to get your credit report for free, what to look for on your credit report, how to get and keep a good credit score, and lots of additional helpful resources and information.  To visit the Consumer Financial Protection Bureau website online, go to https://www.consumerfinance.gov/.

Source:  https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-credit-report-and-a-credit-score-en-2069/

Photo Source: https://pixabay.com/en/credit-report-score-bank-banking-40673/ (downloaded 4/17/18)


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