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The difference between a credit report and a credit score
Did you know that there is a big difference between your credit report and your credit score? Your credit report is a complete history of your credit activity, while your credit score is a three-digit number that summarizes how risky it is to lend you money. Knowing the difference between these two terms can help you better understand your credit rating and take steps to improve it. Keep reading for more information on what goes into each one.
What is a credit report?
Your credit report is a detailed history of your credit usage and payment history. It includes information on how well you’ve managed your debts. Your credit score is based on this information, so it's important to make sure that your credit report is accurate.
What is a credit score?
Your credit score is a three-digit number that determines how much of a risk you are to lenders. It's important to make sure that your credit score is accurate, because it's used by lenders to determine whether or not to approve you for credit, and at what interest rate. You can get your free credit score from a variety of sources, including Credit Karma and Experian.
High credit scores vs. low credit scores
A high credit score means you're considered low-risk, which could lead to lower interest rates. This is because a high credit score means that you've been responsible with your credit usage and have a good history of making payments on time. A low credit score, on the other hand, could lead to higher interest rates and could mean that you're considered high-risk.
How to get a copy of your credit report for free
You can get your free annual credit report from AnnualCreditReport.com. But, keep in mind it does not include a credit score. You can access your credit report from all three of the major credit bureaus: Experian, Equifax, and TransUnion. It's important to check your credit report regularly to make sure that it's accurate, and to dispute any errors that you find.
How to get your credit scores for free
You can get your free credit score from CreditKarma.com or Experian.com. These are two websites that offer free credit scores to consumers. They both use a different method to calculate your credit score, so it's important to check your credit score from both websites to get a complete picture of your credit history.
How to sign up for 3-bureau credit monitoring
However, if you'd like to get your credit reports and scores from one place, we recommend credit monitoring with IDClub. They offer a 7-day trial for only $1 and then it's $29.95 a month after that. This includes your Experian, TransUnion, and Equifax credit scores and reports, as well as identity theft protection and more!
Now that you know the difference between a credit report and a credit score, you can be sure to keep track of them both. A credit report is important because it tells lenders how responsible you have been with managing your debts in the past. Your credit score is important because it provides lenders a complete picture of how much of a risk you are. The lower the credit score, the higher the risk, the higher the credit score, the lower the risk.
Your credit score is just one piece of the puzzle when determining whether or not you're a good candidate for credit or a loan - so it's important to look at your full credit report, not just your scores!
