Credit score and credit report are not the same thing, know the difference between the two

Orhan Wadia
Orhan Wadia  - Editor
3 Min Read
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Understanding Credit Score and Credit Report: Unveiling the Differences

Credit scores and credit reports have become well-known concepts, especially for those who have taken loans or used credit cards. However, a common misconception persists that credit reports and credit scores are synonymous, which is inaccurate. Today, let’s delve into the distinction between these two terms.

Credit Score: A Component of the Credit Report

A credit score is essentially a three-digit number, ranging from 300 to 900, with scores exceeding 750 considered favorable. It provides a summary of your creditworthiness in terms of loan repayment. On the other hand, a credit report offers a comprehensive overview of your various debt obligations. It’s crucial to note that a credit score is a constituent of the credit report.

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Preparation of Scores and Reports

Credit reports are compiled by credit bureaus such as TransUnion, Equifax, and Experian. Similarly, certain banks generate credit scores in-house, while entities like VantageScore and FICO also compute credit scores. Because not all banks report to every bureau, credit reports can differ among bureaus. Credit reports are self-contained documents, whereas credit scores are calculated based on the information within these reports.

Credit Report: A Historical Record

Your credit report documents all your debt accounts, whether currently active or closed. This implies that all loans you’ve taken throughout your life are documented in the report. Closed loan accounts are indicated as such in the report. The complete history of your credit card usage is also contained within the credit report, alongside details of loan repayment patterns.

Fluctuating Credit Score

Your credit score is dynamic and influenced by various factors. It is generally determined based on five elements: outstanding debt, payment history, credit variety, new loans, and loan age. Credit scores fluctuate over time. Improved payment practices lead to an enhancement in your credit score, while obtaining new loans or initiating inquiries can decrease the score.


In conclusion, while credit scores and credit reports are interconnected, they represent distinct aspects of your financial profile. Your credit score serves as a quick indicator of your creditworthiness, while your credit report provides an in-depth history of your financial obligations and repayment habits. Gaining a clear understanding of the differences between these two will help you navigate the world of credit more effectively.

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