The difference between credit score and credit report

The terms “credit report” and credit score” are frequently used interchangeably and doing so is wrong since they’re not, at all, the exact same thing.

To give you a brief history lesson, credit reports include info about the credit expertise of a person and have been in existence for over one hundred years. As folks became nomadic, businesses ended up contacting other firms to get credit reference information on individuals and did not understand everyone.

Credit reports include queries, credit information, public records and private data. Private information includes name, address (present and former), date of birth, social security number, and companies (present and former). Credit advice comprises loans (auto, student and mortgage), credit cards (retail, petroleum and bankcard) and group accounts. Public records contain judgments, tax liens, and bankruptcies. Questions contain the list of businesses with which you’ve applied for credit.

This information is provided to the credit reporting agencies student loans lenders, banks, financial institutions, mortgage lenders, by credit card issuers, vehicle financing firms, collection agencies, and businesses that gather public records from courthouses.

Credit ratings are numeric values assigned to credit advice credit behavior is predicted by that. The most common credit ratings call that someone or delinquency will be more on an account in the next 2 years or 90 days. The result is an algorithm -digit score, with the higher the score the lower the credit risk. Four explanations or motive codes/score variables describe the crucial reasons the individual didn’t receive the maximum score. The score doesn’t replace the credit report, but supplies an overview of the credit advice.

There are minimal conditions for a credit report. Vantage additionally uses non-traditional credit data when active account data is absent to score a credit report.

Credit ratings aren’t mechanically delivered with a credit report. Actually, you can have a credit report with no score but you can not have a score without a coverage being first created. And, if this does not convince you that the two are mutually exclusive I Will defer to the Fair Credit Reporting Act, which really defines the two items.

There’s absolutely no reference of the credit score in that definition. A credit score is defined as numeric value, used by someone who organizes a loan, to forecast the chance of specific behaviors, like default option. There’s absolutely no reference of the credit report in that definition.

So no, it is not semantics. Credit reports aren’t credit scores and credit scores aren’t credit reports.

 

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