What is the difference between a credit score and a credit report?

Many people use the term credit score and credit report interchangeably. Although mistaking them may seem harmless, credit scores and credit reports are very different. As stated in the name, your credit score is exactly that, a score. This score is a numerical value that is calculated and used by lenders to determine the risk associated with giving a borrower a loan.

The formula most often used to calculate a credit score takes into account a person’s payment history, amount owed, length of credit history, new credit and type of credit used. A person may receive a different credit score from each lender or reporting agency because the formula used to calculate the credit score will vary. The reason for the variance is because there are different types of credit score scoring models such as FICO, the most commonly used right now, and VantageScore, which both lenders and consumers are starting to use more often.

On the other hand, a credit report contains a person’s credit history. A credit report includes information such as a person’s social security number, current and previous addresses, and employment history. Besides this, a person can find a list of their lines of credit such as credit cards, student loans and mortgages, the date each one was opened, credit limits, and whether their accounts are past due or in good standing. Bankruptcies will also appear on someone’s credit report as well as the names of people that have recently asked to see the person’s credit report.

Knowing your credit score to know where you stand credit-wise, and to be prepared for any outcomes on your credit applications can be helpful. However, it is more important to remember to check your credit report to prevent identity theft and to make sure that all the information on the report is accurate. A person should also check their credit reports from all three credit bureaus to ensure that the information is the same. As stated earlier, a credit score and a credit report are not the same thing, but they are closely related, as the information on a credit report is used in the calculation of a credit score.

Written by Lesly Luna, Financial Wellness Peer Educator, University of Illinois Extension, 2017.

Reviewed by Kathy Sweedler, Consumer Economics Educator, University of Illinois Extension.