There are many differences between a credit score (or credit report) and a credit score. A credit score is calculated using your credit activity. Your report details your payment history. In this article, we will discuss the differences between these two documents and how they are different from one another. This article will also help you understand the importance of your payment history to your credit score. Continue reading to learn even more. The key differences between a credit score and a credit report are detailed below.
There are some differences between a credit score, and a credit report
Although you might have heard of credit scores, you aren't sure how to interpret them. There are major differences between a credit rating and a credit report. Your credit score reflects your financial history and past behavior. 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 can show the borrower's credit history, including when they borrowed money and when they paid it back. 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. You may also find negative information such as late payments. Credit scores can be good to excellent in general, but they can vary greatly.
Credit reports contain information
A credit report includes information on your financial history, such as how much you've borrowed and repaid, how many accounts you have open and closed, and whether you've had any delinquent payments. You can also see if you've ever applied for credit. This information may remain on your credit report for many years. Financial institutions use this information to decide whether to extend you credit. Other people can also request a copy of your credit report, such as your employer or landlord.
Your payment history is one of the most important pieces on your 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 also includes your repayment history, including installment loans and credit cards. You will also find any tax liens or judgments on your credit report.
The impact of payment history on credit scores
Your payment history is an important factor when it comes to credit scores. Late payments can have a negative impact on your credit score for up to seven years. Although a few late payments might not affect your score, several can have a negative 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 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 the current loan could be the best decision in these cases. As mentioned, refinancing your existing loan could also improve your score. Refinancing a car or home loan can help you improve your credit score.