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Credit Education > Credit Score > REPORTS VERSUS SCORES – The difference


By Janet Lacey
Published: Wednesday, October 20th, 2010

This article is mainly about the difference between report and credit score.

Many people used to have that perception that credit report and scores are the same thing but in reality, these two are actually different things. When we refer to credit report, we are talking about the actual information that is gathered from several different sources in order to give the consumer an idea of his or her monetary transactions.

 It is said to be done when a third party gets affected by different credit undertakings. This third or middle ground party collects data on all sorts of information about you and bridges it to other money lenders. This allows them to see if you really are capable of paying your expenses and debts. On the other hand the scores refer to equations used to predict how long it will take for a borrower to be able to pay for his or her debt or loan. 

The credit score is actually dependent on the report for it to work out. Since it is said to be dependent on equations, the credit score is able to detect and dictate your credit limit. This means that its job is to determine if you are worthy of a loan or not but its outcome is closely related to the results of your report

Meanwhile, the report is the one updating you on credit history and your past expenses and business deals. Both are easily accessible online although scores come with a price. Scores actually come with pay or even for free since online report sites claim that in the new Federal law, citizens have a right to acquire a free copy of the report every twelve months. With this in mind, we can actually see that having these files are important in completely handling our finances. 

There are many advantages when you have a good report and high scores. For one, you have more buying powers and companies will not hesitate to lend you large amounts of money since they are confident that you can pay for your expenses.  Your credit score or credit behavior is even important in employment. 

Your scores can actually be reflective of your personality. Some employers even consider good scores as a sign of a person’s sense of responsibility. This is why it is imperative for all working people to be able to manage their finances smoothly. By being exposed to the development of your skills in handling your money, you are not only able to buy more; you can actually learn how to be able to spend less. Isn’t that great? Being habitually aware of your money matters and expenses, gives you an edge in handling your finances. 

Why, you may ask? It’s because it will be much easier for you to deal with more challenging monetary situations if you know how to deal with your own money. 

Now that we know the difference between reports and credit score, we can further be able to expand our knowledge in terms of money organization and budgeting. 

AUTHOR INFO BOX:  Don’t just take the credit, learn more about it! Want more information on free online credit reports? Grab the opportunity to find out more information about credit report and scores by logging on to

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