There are many differences in a credit report and a score. The credit score can be calculated based upon your credit activity. A credit report, however, contains information about your payment history. This article will examine the differences between these two documents as well as how they differ. This article will provide insight into the role that your payment history plays in your credit score. Continue reading to learn even more. These are the main differences between a credit score (or credit report) and a credit score.
Differences between a credit score and a credit report
Credit scores are something you may have heard about, but don't know how to interpret them. There are several key differences between credit scores and credit reports. Your credit score is a numerical analysis of your financial history that is based on your past behaviour. A credit report gives you a better overview of your financial history. But a credit rating is a single number that lenders use in determining whether you are a good candidate to get credit.
Credit reports provide information about a borrower's past history of borrowing money and paying it back. Credit scores are three-digit numbers that lenders use to determine a borrower's credit worthiness. Your credit report contains a list of your accounts and their age. Negative information, such delinquent payment history, may also be included in your credit report. Although credit scores can range from excellent to poor, they are often good to excellent.
Information included in a credit report
Credit reports include information about your financial history. This includes information such as how much money you have borrowed and repaid, the number of accounts you have opened and closed, and any delinquent payments. This report also contains information about whether you have ever applied or received credit. This information could be on your credit report for years. This information is used to determine whether you are eligible for credit. An additional person can also request a copy, such as your landlord and employer.
Your payment history is one the most important pieces in a credit report. This includes all of the accounts that you've opened in the past seven to ten years, including joint accounts that you've been listed as an authorized user of. Your credit history includes your repayment history. This includes credit cards and installment loans. Your credit report will also include any judgments and tax liens.
Credit score and impact of payment history
Your payment history is a key factor in your credit score. Late payments can damage your credit score and be visible on your report for up to seven year. While one or two slip-ups might not hurt your score, multiple late payments can negatively impact 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 can see your payment history to determine how likely you are for default on your accounts.
FICO's estimated 35% impact is a rough guideline. However, your actual impact could vary. If you have limited credit history, a few late payments could have a greater impact than a long history of timely payments. Refinancing an existing loan is a good option in these situations. Refinancing an existing mortgage could improve your credit score. If you're concerned about your credit score, refinancing a home or car loan is an excellent option to repair your credit.