Credit Score vs. Credit Report: Key Differences and How To Check Each

While many people use credit scores and credit reports interchangeably, and the two are related, they are different. Can you have a poor credit report and a good credit score? It’s unlikely, but not entirely impossible. Read on to learn the purpose of each, how they’re different, and what you need to do to keep both in good shape.

Key Takeaways

• Your credit score and credit report serve different purposes. The score is a three-digit number lenders use to gauge risk, while the report is a detailed history of your accounts, payments and any negative events that feeds into that score.

• Each tool matters in different situations. Lenders check your score for credit cards, car loans and interest rates, while landlords, employers and mortgage providers dig into your full credit report.

• Check both regularly at AnnualCreditReport.com or through your bank app and dispute any errors in writing.

Summary generated by AI, verified by MoneyLion editors

Credit Score vs. Credit Report: Key Differences

Your credit score and credit report present two very different views of your personal financial health. Here’s how they differ from one another:

What Is a Credit Score?

A credit score is a three-digit number that lenders review to determine how responsible or risky you are as a borrower. It represents the statistical probability that you’ll default on a loan.

Your credit score is based on your credit report, which is collected and provided by credit bureaus, Experian, Equifax and TransUnion.

There are different types of credit scores, but the two main ones most lenders use are the FICO score and VantageScore. Poor credit shows lenders they are taking on greater risk by lending to you.

Factors that Make Up Your Credit Score

While each credit score weighs factors slightly differently, here are the factors that make up credit scores:

• Payment history = 35%: This is your repayment history and shows if payments have been mostly on time or late.

• Credit utilization rate = 30%: How much you owe compared to your credit limit.

• Credit history = 15%: This is the length of credit history or the average age of your credit accounts

• Credit mix = 10%: This is the type of credit account, such as credit cards, mortgages, auto loans, etc.

• Credit checks = 10%: This covers hard inquiries, or how often you’ve recently applied for new credit.

What Is a Good Credit Score?

Wondering if your score is classified as good? Check out this table to find out where your credit score ranks:

What Are Credit Scores Used For?

Credit scores impact almost every area of your financial life. Here are different places they can be used:

• Loan approvals

• Interest rates

• Loan terms

• Credit card approvals and limits

• Apartment or rental applications

• Utilities

• Insurance

• Background checks for employment

How To Check Your Credit Score

You can follow these steps to access your credit score:

1. Use your existing financial apps: Most major banks and credit card issuers — including Chase, Capital One, Discover and American Express — provide a free credit score directly in their mobile app.

2. You can download a credit monitoring tool: Sites like MoneyLion have credit monitoring tools that you can use to check your credit score.

3. Pull your reports from annualcreditreports.com: You can pull your credit history as well as your score from all three credit agencies once a year for free.

If you want to check your credit score, you won’t be penalized. That is considered to be a soft inquiry.

How To Improve Your Credit Score

Here’s a look at simple actions you can do to boost your credit score:

PRO TIP! A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards. MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit.

What Is a Credit Report?

A credit report is a ledger of your debt management history produced by one of the three major consumer credit bureaus: Experian, TransUnion or Equifax. These credit bureaus are in charge of collecting and storing the information that makes up credit reports, which will ultimately determine your credit score.

What’s Included In a Credit Report

Your credit report contains your personal information, data on your credit history, credit accounts and the history of these accounts. These are provided to credit bureaus by the lenders you work with.

Within your credit report, you should expect to find the following.

• Personal information: Your name, address, birth year and more.

• Credit accounts: All the loans, credit cards, or other bills in your name, including open accounts, as well as closed and collection accounts.

• Bankruptcy: Bankruptcy filings from the last seven to 10 years will generally appear on your credit report.

• Recent inquiries: The number of times someone recently checked your credit report, typically as a credit check to decide whether to approve you for a loan, apartment, etc.

How To Get Your Credit Report

You can get a free credit report from all three credit bureaus at AnnualCreditReport.com. You can also request your credit report by phone or through the mail:

• Phone: (877) 322-8228

• Mail: Download and complete the AnnualCreditReport request form and mail the completed form to:

How To Dispute an Error on Your Credit Report

If you find an error on your credit report, you can dispute it by taking these steps:

1. Document the error on your credit report from all three credit bureaus.

2. Gather evidence that there is an error. You can provide bank statements, payment receipts and other documentation.

3. Write a dispute letter. Write a dispute letter detailing the error and evidence of the mistake.

4. Send the letter and documentation to the credit bureau. The best way to do so is to send it via certified mail with a return receipt requested so that you have proof of delivery. Wait 30 to 45 days to hear back from the credit bureaus.

When To Use Your Credit Score vs. Credit Report

Use Your Credit Score

• Apply for a new credit card

• Qualify for a car loan

• Get a lower annual percentage rate (APR)

Use Your Credit Report

• Qualify for a mortgage

• Apply for a job

• Rent an apartment

FAQs

Is a credit score the same as a credit report?

No, a credit score is a three-digit number measuring your creditworthiness, while a credit report is a history of all your timely, missing and late payments as well as any negative events.

How often do they update?

Credit reports and scores are updated every 30 to 45 days.

Does checking your credit hurt your score?

No, in fact, you should check your credit regularly to monitor for mistakes and inaccuracies.

How long do negative items stay?

• Late payments, collections, foreclosures: 7 years

• Chapter 13 bankruptcy: 7 years

• Chapter 7 bankruptcy: 10 years

• Hard inquiries: 2 years

What do lenders actually look at?

Lenders look at your score but also your financial patterns. They look at payment history, debt-to-income (DTI) ratios and credit utilization.

Key Terms

• Credit score: A three-digit number that estimates how likely you are to repay borrowed money on time using information from your credit reports.

• Credit report: A detailed record of your credit history, including accounts, payment history, balances and recent credit checks.

• Credit utilization ratio: The share of your available revolving credit you’re using. Lower utilization can help your credit score.

• Hard inquiry: A lender’s review of your credit report after you apply for new credit. It can lower your credit score for a short time.

• Payment history: Your record of paying bills on time or late. It’s one of the biggest factors in your credit score.

Summary generated by AI, verified by MoneyLion editors

Alison Kimberly contributed to the reporting for this article.