The Difference Between Credit Reports & Credit Scores
What is a credit report?
- A credit report provides you with all of the information in your credit file (“credit history”) maintained by a credit bureau that is provided about you by a third party, such as a lender. Generally, a credit report will reflect your credit pattern of behavior for a period of seven years. A credit report will also include information on everyone who has received a report about you from the reporting company within a certain time period, depending on the bureau (“inquiries”).
- There are 3 credit bureaus in this country, Equifax, Experian, and TransUnion. You may request a free report once every 12 months from each of the three bureaus.
- Adopt a review system that staggers reviewing one report every four months (i.e. January, May, and September). Bundling the reports and reviewing them on the same day restricts your free access for twelve months.
- The best way to request a FREE credit report is through an annual credit report. The 3 credit bureaus links are contained on this website. You can also request a free annual credit report by phone or mail, and it will be mailed within 15 days.
- Requesting a credit score involves a nominal processing fee and is not necessary every time you request a credit report.
“Credit Report” Is a credit report the same as a credit score? NO, A credit report is a record of your credit history. It can show lenders and others how you manage your financial responsibilities.
FICOTM is an acronym for the Fair Isaac Corporation and refers to the credit scoring system used in more than 90% of lending decisions in the United States. The FICO score is calculated by applying statistical methods, developed by the corporation, to gather information on one’s credit file. To learn more about the FICOTM scoring system go to myFico.
- Credit reports help a credit grantor decide whether to grant you credit based on your credit payment history. If a lender finds what it considers excessive inquiries, it may reject your credit application. Lenders are free to determine their own guidelines for what constitutes excessive inquiries. Don’t give out your credit information unless you are ready to apply for credit.
- Credit scores help lenders assess risk more fairly because they are consistent and objective. Consumers also benefit from this method. No matter who you are as a person, your credit score only reflects your likelihood to repay debt responsibly, based on your past credit history and current credit status.
Updated: November 10, 2021