Posts Tagged ‘understanding credit score’
Make a Good Credit Report and Start Getting a Good Credit Score!
Both credit report and credit score play an equally important role in your financial dealings. Although closely related to each other, they have certain differences. It is really very important that you keep yourself aware of these differences because these two things are an inevitable part of your financial world.
The basic differences between credit report and credit score are:
1. Meaning
The credit report is a database of all your dealings which includes each and every task associated with your finances.
On the other hand, credit score is a numeric value derived from the credit report which actually indicates the risk factor associated with your finances. Credit score shows whether you are a creditworthy person or not.
2. Cost
Another small difference is that credit report doesn’t cost any money whereas credit score involves money.
3. Interdependence
Credit report has nothing to do with credit score, whereas credit score totally depends on the credit report information. If the credit report changes, the credit score will also automatically change.
Generally, credit report information contains the following details: