Published on 06-May-2023
Feature |
Credit Score |
Credit Report |
---|---|---|
Definition | A numerical representation of an individual's creditworthiness based on their credit history | A detailed record of an individual's credit history, including credit accounts, payment history, and inquiries |
Purpose | Used by lenders and creditors to assess the risk of lending money or extending credit to an individual | Used by lenders and creditors to assess an individual's creditworthiness and ability to manage credit |
Scale | Typically ranges from 300-850, with higher scores indicating better creditworthiness | Does not have a set scale, but includes detailed information about an individual's credit history |
Factors | Based on a variety of factors, including payment history, credit utilization, length of credit history, and types of credit accounts | Includes detailed information about credit accounts, payment history, inquiries, and public records |
Calculation | Calculated using a proprietary algorithm by credit bureaus or lenders | Compiled by credit bureaus based on information reported by lenders and creditors |
Access | Credit scores may be available for free or for a fee through credit monitoring services or credit bureaus | Credit reports are available for free once per year from each of the three major credit bureaus |
Updates | Credit scores may be updated on a monthly or periodic basis based on changes to an individual's credit accounts and payment history | Credit reports may be updated on a periodic basis as new information is reported by lenders and creditors |
Impact | Can impact an individual's ability to obtain loans, credit cards, and other financial products, as well as the interest rates and terms offered | Can impact an individual's ability to obtain loans, credit cards, and other financial products, as well as the interest rates and terms offered |
Timeframe | Can be calculated quickly and easily, typically in a matter of seconds | May take longer to obtain and review, as it includes detailed information about an individual's credit history |
Accuracy | May vary depending on the credit bureau or lender providing the score, and may not always reflect an individual's true creditworthiness | Can be more accurate and comprehensive than a credit score, as it includes detailed information about an individual's credit history |
Disputes | Errors or inaccuracies in a credit score can be disputed and corrected by contacting the credit bureau or lender | Errors or inaccuracies in a credit report can be disputed and corrected by contacting the credit bureau or lender |
Public records | Generally does not include information about bankruptcies, tax liens, or other public records | Includes information about bankruptcies, tax liens, and other public records that may impact an individual's creditworthiness |
Derogatory marks | Generally does not include information about late payments, collections, or charge-offs | Includes information about late payments, collections, charge-offs, and other derogatory marks that may impact an individual's creditworthiness |
Inquiries | Does not generally include information about inquiries made on an individual's credit history | Includes information about inquiries made on an individual's credit history, which can impact their credit score and creditworthiness |
Length of history | May be impacted by the length of an individual's credit history and the age of their credit accounts | Includes information about the length of an individual's credit history and the age of their credit accounts |
Public access | Generally not available to the public, and can only be accessed by authorized parties such as lenders and creditors | May be accessed by anyone with a legitimate reason to review an individual's credit history, such as landlords or employers |
Personal information | Does not generally include personal information such as name, address, and social security number | Includes personal information such as name, address, and social security number |
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