Credit Report vs. Credit Score: Differences and Similarities
Your credit score and credit reports play a big part in your financial life. But what is a credit report, and how does it differ from your credit score?
Your credit report is a comprehensive list of all the loans and lines of credit you’ve had under your name. It also details your payment history, employment and past addresses.
Your credit score is a number whose calculation is based on the information from your credit report and tells lenders how creditworthy you are; the higher your score, the less of a risk you’re considered to be as a borrower.
Let’s dive a little deeper by looking at the following topics:
Credit report vs. credit score: Breaking down the differences What’s included in a credit report? What’s included in a credit score? Credit report and credit score: FAQ Credit report vs. credit score: Differences
Your credit reports and scores affect your everyday life. They use the same information, but there are some key differences in how you can access and use your report versus how you can view your score.
What it is | A record of your loan, credit and payment history | A numeric score that companies calculate based on the information in your credit report |
How it’s used | To evaluate total outstanding debt and history of missed payments or delinquencies | To determine the likelihood that you’ll pay your bills in the future |
How to check it | AnnualCreditReport.com | ● Experian, Equifax or TransUnion ● Some credit cards |
Cost to access it | Free | Free with some credit cards, $19.95 to $39.99 with credit score services |
Who can see it | Creditors, insurers, employers or businesses who use your report to evaluate applications for credit, employment and other purposes | Creditors and businesses, such as phone or insurance companies |
What is a credit report?
Your credit report is a history of your credit habits, including past accounts opened under your name.
How much does a credit report cost? There is no credit report fee — under the Fair Credit Reporting Act, the law requires the three major credit bureaus (Equifax, Experian and TransUnion) to allow you to view your credit report for free every 12 months.
You can access your credit report at no cost at AnnualCreditReport.com, where you can typically get a free credit report from each of the three credit bureaus once per year — however, the three major bureaus are giving people free weekly access to their credit reports through April 2021.
What’s included on a credit report?
What does a credit report show exactly? A detailed credit report is a comprehensive history of your past credit use, payment history and public records.
Your credit report will include the following information:
Accounts: A list of loans, credit cards and other lines of credit under your name. Credit limits: The total amount of debt and credit limits available to you. Payment history: How often you paid your loans, credit cards and other lines of credit on time, as well as how many payments you’ve missed. Credit inquiries: A list of businesses that have obtained your credit report. Personal information: Your current and former names, addresses and past employers. Public records: Bankruptcies appear on your credit report.
Your credit report does not include your credit score. If you’re looking for a credit report with credit score, you’ll likely have to pay for premium credit score services.
What is a credit score?
When it comes to understanding the difference between credit report and credit score, the major factor that separates them is the level of detail. While your credit report is likely pages long and shows your entire credit history, your credit score is just a three-digit number.
Your credit score is the number that lenders use to determine if you’re a good risk. The higher the score, the more likely you are to pay your bills, in the lender’s view.
Scoring companies, like FICO and VantageScore, use proprietary calculations based on the information on your credit report to determine your credit score. While you can get your credit report for free at AnnualCreditReport.com, you can’t access your credit score the same way. In most cases, you’ll have to pay a fee to view your credit score.
One of the most common credit score questions is, “Why are my credit scores different?” The answer is that there are different types of credit scores, and each one has its own different scoring model. Depending on the type of score, information is weighed differently, which can cause your score to fluctuate.
FICO Score
Created by the Fair Isaac Corporation, the FICO Score is one of the most common credit scores. In fact, the company claims that the FICO Score is used by more than 90% of top consumer lenders.
FICO Scores range from 300 to 850. Your score is based on the following factors:
Payment history (35% of your score): To maximize your score, make all of your payments on time. Amounts owed (30% of your score): To raise your score, pay down debt and keep your credit card balances low. Length of credit history (15% of your score): How long you’ve had credit cards or loans affects your score. Canceling older accounts, such as credit cards, can cause your score to drop. New credit (10% of your score): Opening up new lines of credit can cause your score to decrease. Credit mix (10% of your score): Having a range of credit types, such as student loans, credit cards and personal loans, can improve your credit score.
While you usually have to pay to view your FICO Score, some credit cards allow you to get your FICO Score at no cost.
<580 | Poor | Your score is below average, and lenders will consider you to be a risky borrower |
580-669 | Fair | Your score is considered subprime, meaning you’ll qualify for less-than-ideal interest rates |
670-739 | Good | Approximately 8% of applicants in this range will become seriously delinquent in the future |
740-799 | Very Good | Your score will allow you to qualify for most credit cards and loans and get competitive interest rates |
800+ | Exceptional | With a credit score in the exceptional range, you’ll qualify for lenders’ best rates |
VantageScore
First introduced in 2006, VantageScore is increasingly common. Now on its most recent iteration, VantageScore 4.0, the newer VantageScore ranges from 300 to 850.
While VantageScore does not disclose exactly how it weighs each factor, it considers the following elements when determining your credit score:
Total credit usage, balance and available credit (extremely influential): To boost your credit, keep your revolving balances low. Credit mix and experience (highly influential): Having a mix of different accounts, such as mortgages and credit cards, can improve your credit. Payment history (moderately influential): Make all of your payments on time to maintain your credit score. Age of credit history (less influential): Keep older accounts open to build your credit. New accounts (less influential): Don’t open too many new accounts if your goal is to improve your credit score.
300-499 | Very Poor | You are unlikely to qualify for lines of credit |
500-600 | Poor | You may be approved for some forms of credit, but rates may be high and there may be additional requirements (such as a large down payment) |
601-660 | Fair | You may qualify for lines of credit, but not at competitive rates |
661-780 | Good | Lenders will likely approve you for better-than-average rates |
781-850 | Excellent | With an excellent credit score, you’ll most likely to qualify for lines of credit and lender’s lowest rates |
Credit report and credit score: FAQ
What does a credit report show?
Your credit report shows your past credit history. It includes a list of credit cards and loans that you’ve taken out, your payment history, employment and public records.
Where can I access a detailed credit report?
You can view your credit for free at AnnualCreditReport.com. You can get a credit report from each of the three credit bureaus once per year, or weekly through April 2021.
How much does a credit report cost?
If you get your credit report through AnnualCreditReport.com, there is no cost; you can get a credit report from each of the credit bureaus for free.
What public records appear on a credit report?
Your credit report will show records of past bankruptcies. Public records like civil judgments and liens used to appear on credit reports, but no longer do.
Will a credit card issuer consider your credit report?
When a credit card company reviews your application, it may review your credit score and your credit report to determine whether to approve you.
Does a credit report show a credit score?
No, a credit report does not include your numeric FICO Score or VantageScore. If you want to view your score, you’d typically have to pay a fee. However, there are some ways you can get your credit score at no cost.
What is the starting credit score?
Both FICO and VantageScores start at 300. A bad credit score tends to be below 580 for FICO and below 600 for VantageScore.
What is a fair credit score?
According to FICO, a fair credit score is a score between 580 and 669. For VantageScore, a fair credit score is a score between 601 and 660.
Why are my credit scores different?
There are multiple credit scoring models, such as the FICO Score and VantageScore. Each model calculates your score differently, so your score can vary depending on which scoring model is used.
Can an employer access your credit score?
Employers cannot access your credit score, but they can view your credit report if you provide your written consent.
Can a landlord access your credit score?
Landlords can view your credit score (generally in an abridged form called a tenant credit score or resident credit score), as well as your credit report, when reviewing your application for housing with your given consent.
How can I better understand my credit score?
Your credit score is calculated using the information from your credit report, so it’s a good idea to review your credit report regularly. If you find inaccurate information, make sure you dispute these inaccuracies with the credit bureaus to ensure your credit report is correct and your credit score is as high as possible.
Melanie Lockert contributed to this report.
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