Even though credit reports and credit scores are sometimes used interchangeably, they are two separate and distinct tools used to measure one's financial stability. The information in your credit report is used to help determine your credit score.
Credit Report
A credit report is a review of an individual's financial history. Credit reports contain information on a person's account records, debt and personal information. Creditors report to the three major credit bureaus, Experian, Equifax and Trans Union, on a monthly or bi-monthly basis.
Credit Score
A credit score is calculated using the information contained in a credit report. Credit scores are generated based on a variety of factors such as number of revolving accounts, age of accounts and credit utilization. FICO credit scores range between 300 and 850. A higher score indicates a more worthy credit candidate.
How to Obtain a Credit Report and Score
There are multiple companies that provide consumers with a copy of their credit report and score for a fee. The Fair Credit Reporting Act allow individuals to receive a free copy of their credit report from all three bureaus. The score is not included. Visit annualcreditreport.com for a free report. Typically, a good credit report indicates a good credit score.
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