Credit reports and credit scores sound similar, but they play two distinct—but related—roles in your financial profile. Your credit report refers to a list of everything that’s in your credit profile with a specific credit bureau. You have a credit report with Experian, a different credit report with Equifax, and another credit report with TransUnion because they all have different information about you. Your credit score is a three-digit number that reflects how positive or negative the information in your credit profile might be. Depending on what your credit score is being used for, it will be calculated differently—meaning you have dozens of different credit scores.
Find out more about credit scores vs credit reports and how they’re related below.
In This Piece
Credit Score vs Credit Report: The Main Differences
| Credit Score | Credit Report | |
|---|---|---|
|
What is it? |
A number reflecting how positive your credit history might be |
A document detailing the information in your credit profile |
|
How is it created? |
Calculated using various methods created by companies such as FICO® and VantageScore |
The credit bureaus collect information reported to them by a variety of entities, including creditors and financial institutions |
|
Where do you get it? | From credit reporting agencies and services that provide credit scores, like ExtraCredit® |
The three major credit report bureaus are TransUnion, Equifax, and Experian |
|
When can you get a free one? |
You can get free informational credit scores from some apps and providers, including the Credit Report Card | Annually from AnnualCreditReport.com Directly from the credit bureau any time information in your credit profile was used to deny a loan or credit application in your name |
|
When can you pay for it? |
As an ExtraCredit subscriber, you get access to 28 versions of your FICO score |
ExtraCredit and similar services provide you with ongoing access to one or more of your credit reports, helping you keep an eye on your information |
|
Who else can see it? | People and companies that check your credit when you give written permission to do so Companies pulling a soft credit check to qualify you for offers (you can opt-out of these) | People and companies that check your credit when you give written permission to do so Companies pulling a soft credit check to qualify you for offers (you can opt-out of these) Certain government agencies and others accessing the information for official or research purposes, though sometimes the information may be redacted and anonymous |
What Is a Credit Report?
Think of your credit report as a financial resume. It keeps track of what you’ve done financially for the past 7 to 10 years. Credit reports include a variety of information about your financial accounts:
- The number of and details about accounts you have open
- Recently closed accounts
- Credit limits and loan amounts
- Loan balances
- Payment history
- How often you’re applying for credit
- Whether you have negative records such as foreclosures, collection accounts, or bankruptcies
Credit reports also include your personal information, such as name, address, date of birth, and Social Security number.
Most people who have a credit history have three credit reports, one from each of the major credit bureaus: Equifax, Experian, and TransUnion. Because they’re independent agencies, the information on each report can be different.
The Importance of Keeping Up with Your Reports
Understanding what’s on your credit report can ensure you don’t run into surprise denials or other issues when you’re applying for credit. It’s a good idea to look at your reports before you seek a mortgage, car loan, or other loan. But you don’t have to be in the market for a loan to benefit from keeping up with your credit reports. Here are a few other reasons to do so:
- You can plan for the future. Understanding what’s on your credit report today helps you make better financial decisions for improving your credit in the future.
- You can challenge mistakes. The Federal Trade Commission estimates that 20% of people have at least one error on their credit report. Errors can drag your score down and make you look like a less worthy borrower, so you want to know about them and dispute them as soon as possible. You have the right to challenge inaccuracies on your report.
- Identify potential fraud. If you see activity on your credit report that didn’t come from you, it might mean someone’s using your name to take out credit. Learning about it and reporting it as soon as possible helps you avoid long-term issues with identity theft that can put a serious damper on your credit.
Interested in keeping an eye on your credit and learning more about how you can improve it? Sign up for the free Credit Report Card.
Who Else Can See Your Credit Report?
There aren’t a lot of organizations that can look at your credit report. The list includes:
- Creditors (with consent for hard inquires, without consent for soft inquiries if they plan to offer you credit)
- Employers (with your written consent)
- Landlords (with your written consent)
- Insurance companies
- Certain government agencies
Other circumstances that may allow organizations to look at your credit report include:
- A court order or federal grand jury subpoena
- Figuring out child support under certain circumstances
- To check credit or insurance transactions that weren’t initiated by you
What Is a Credit Score?
A credit score is a three-digit number between 300 and 850 that indicates your likelihood to pay back a loan. Scores are used by lenders when deciding to approve you for a loan, like a mortgage or credit card. They might also be used by entities such as insurance companies to determine whether to offer you a policy or how much to charge you for car insurance.
Credit scores are calculated using the information in your credit report. Each bureau has its own way of calculating credit scores, and they have different algorithms for different types of scores. That means you have dozens of different credit scores used for different purposes.
Types of Credit Scores
The main factors in determining credit scores include payment history, credit utilization rate, credit age, credit mix, and number of hard inquiries. But there are different types of credit scores, and how those factors are used in each calculation is slightly different.
Two of the main developers of credit scoring models are VantageScore and FICO.
Both models have scores ranging from 300 to 850. The higher the number, the better. You’re considered to have good credit if you’re around 670 to 700 or above, depending on the model.
A good credit score can help you access the best interest rates and terms, as well as the best credit cards rewards programs. A bad credit score, on the other hand, can make it difficult to secure different loans. If you find yourself with bad credit, there are ways to improve your credit score.
The Importance of Keeping Up with Your Score
If you plan on making a big financial move, like getting a new credit card or a car loan, it’s time to take a peek at your credit score. Your credit score tells you whether you’re in good shape to get financing. And keeping an eye on your score lets you see any sudden drops that can alert you to a credit report error or identity theft sooner rather than later.
Are you concerned about getting a ding on your credit score by looking it up? Don’t worry—that counts as a soft inquiry and doesn’t hurt your credit.
Understanding Your Credit Scores and Credit Reports
Credit scores and credit reports are both important financial tools you need to know about. Starting here and learning more about them is the first step in building your credit for the future.
If you’re interested in staying completely on top of your credit, consider trying ExtraCredit’s Track It feature.
