Making a comparison between credit score and credit report

08-April-2015 written by : FSI-Team

You can always get a credit check from any of the major credit reporting industries. This credit report check will show various areas about your personal and financial transactions and credit history over a period of years. It will contain some identifying information like your address and employer, as well as your date of birth that has been taken from any of your previous applications for credit. Your credit report will reveal all of your bank or credit union accounts as well as any present loans or credit cards. It will also contain your credit applications and repayment history.

Basically, a credit score check is like a medical examination. Your credit history is reviewed and examined in detail so that any past patterns or habits can be identified. You will be examined for any financial conditions that might impair your future financial health like bad obligations, outstanding loans, or missed payments. It will also identify major incidents like loan defaults or bankruptcies which would be the credit equivalent of cancer or serious heart disease. When that credit diagnosis has taken place through the credit check you will be given an assessment or credit rating.

The CIBIL score, which determines your credit check, will then identify you to potential loan specialists at a certain level of risk. That risk being the chances or likelihood that you will repay/default any credit or loan received at the appointed times during the life of the credit arrangement. A credit check will reveal all your financial and credit flaws but if you have been paying your bills on time, that excessively would become clear and evident for anyone to see.

Credit experts suggest that you should get a credit check at least once a year just to see what kind of information is being gathered about you and your spending, credit, and your obligation history. If your credit check turns up any incorrect information or reports on situations that you are not aware of, you can ask the credit reporting agency to remove that information from your file, by a procedure prescribed by the respective bureaus. The other reason to get a yearly credit check is to make sure that any positive steps that you are undertaking to reclaim your credit profile are also being reported as well.

A credit report is a record that shows all the information gathered by the credit bureaus. A "tri-consolidation" or "blended" credit report contains the information from all three credit bureaus in one report. This report lists all your past credit accounts that have been reported to the credit bureaus. The report tells you how much money you owe to creditors, what your available balance is, and your complete payment history, including any late payments. There are five parts to your credit score. Points are awarded for each of these five parts, and a high score is generally favorable. The factors are listed beneath in place of importance. So hopefully, you have now understood how these two things are same and, in the same way, very different from each other.



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