Credit Score vs Credit Report
Whether you are shopping for a new or used car or trying to get some other kind of financing, you may want to know where you stand with your credit. A lot of terms get thrown out, and many of them are important. In this blog we are going to check out the difference between a credit score and a credit report to try and shed some light on the subject.
Credit Score: Credit At a Glance
When a car dealership wants to get a fast and efficient idea of your creditworthiness, they will look at your credit score. This is a number from 300 to 850 which gives an overall impression of your credit health. Scores in the 800 to 850 range are considered excellent while anything below 599 is considered bad. People often have to pay a fee to get this score, though some banks and credit unions may offer it for free.
This score is calculated by looking at things like the amount of debt you carry (like auto and mortgage payments, or the balance usually on your credit card), the length of your credit history, the types of credit you have, and if you have new credit on your report (too much is not a good thing).
Read More: Does Checking Your Credit Hurt Your Score?
Credit Report: The Nitty Gritty
Unlike a credit score, which is a combined credit evaluation, your credit report is a list of your credit history. It will show if you have made regular payments, if you have opened new lines of credit, and how long your credit history is. You can get three free credit reports per year, and it is a good idea to check out your credit history before applying for financing at a dealership. If there is something inaccurate on the credit report that might bring down your credit score you can work to get it changed before trying to get the best loan possible.
Hopefully this has helped clear up the difference between a credit score and a credit report. Let us know if you need other details we haven’t included here!