There are several differences between a credit score and a credit report. Your credit score is based on your credit activity. While your credit report includes details about your payments history, it also contains credit information. This article will explain the differences and similarities between these two documents. This article will also help you understand the importance of your payment history to your credit score. Read on to learn more! The key differences between a credit score and a credit report are detailed below.
Differences between a credit score and a credit report
You may have heard of credit scores but you're not sure how to interpret them. There are several key differences between credit scores and credit reports. Your credit score is a numerical assessment of your financial history, based on past behavior. While a credit file provides more detail about your financial history, a score on credit is a single numerical number that lenders use for determining if you're a suitable candidate for credit.
Credit reports are a record of borrowers' history of borrowing and repaying money. Lenders use credit scores to assess a borrower’s creditworthiness. A credit report includes a list of all your accounts, as well as their age. Your credit report may also include negative information, like delinquent payments. Credit scores range from good to excellent but can fluctuate widely.
Information in credit reports
A credit report provides information on your financial records, such as how much debt you've repaid, what accounts you have open, closed, and whether there were any delinquent or late payments. It also includes information on whether or not you have ever applied for, received, and paid off credit. This information could be on your credit report for years. These information are used by financial institutions to decide whether or not to extend credit. You can request a copy from your credit report to your landlord or employer.
One of the most important pieces to a credit score report is your payment history. This includes all accounts that you have opened in the last seven to 10 years, along with joint accounts that are listed as authorized users. Your credit history includes your repayment history. This includes credit cards and installment loans. These items are not the only ones that will appear on your credit reports.
Credit score and impact of payment history
Your payment history is one of the most important factors in your credit score. Late payments can damage your credit score and be visible on your report for up to seven year. One or two mistakes might not negatively affect your score. However, multiple late payments could have a significant impact on your score. Your payment record is a record that shows you when and how late you paid on all your accounts. This includes personal loans and credit cards. Lenders will be able to see how likely you have been to default on accounts by looking at your payment history.
FICO's estimate of 35% is an approximate guideline. Your actual impact may be higher or lower. If you have limited credit history, a few late payments could have a greater impact than a long history of timely payments. In such cases, refinancing your current loan could be the best option. Refinancing a loan you already have could also improve your credit score. Refinancing a car or home loan can help you improve your credit score.