I’ve often heard people talk about credit report and credit score interchangeably. But, based on what you’ve told me, I think they are different, aren’t they?
That’s right, they are related, but quite different. Your credit report contains information about your financial history and behavior, whereas your credit score summarizes these details into a single number.
What is more important: credit report or credit score?
Both are important. You credit report has details about your loans, repayment history, etc. which helps someone who needs to perform a thorough analysis of your financial behavior. In a way, the credit report is like your school report card. Your credit score is derived from the information in your credit report, and gives a quick snapshot of your creditworthiness to someone who doesn’t need too much information. So the credit score is more like your grade or GPA.
Who looks at my credit report, and who uses my credit score?
Employers and landlords typically look at your credit report, whereas credit card companies – where an approval decision is usually made in just a few seconds – look at your credit score. Mortgage providers and other lenders usually look at both the credit report, and credit score.
Can I see my credit report and credit score?
Yes, you can. But how to do that is a topic for another time…
Podcast: Comparison – Credit Report vs Credit Score
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
A quick yet thorough Credit Report vs Credit Score comparison: How are Credit Report and Credit Score Different, What is more important – credit report or credit score, Who looks at your credit report and who uses your credit score, Can you see your credit report and credit score, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/comparison-credit-report-vs-credit-score/