Learn the Difference Between Your Credit Reports & Scores

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Learn the Difference Between your Credit Reports & Scores

Chapter 4: Credit Reports, Credit Scores, and Credit Bureaus

Now that you’re getting into understanding credit, it’s also important to understand the relationship between credit reports, credit scores, and credit bureaus.

This chapter helps clarify these terms. With a better understanding of the different roles reports, scores, and bureaus play, you may make informed decisions on how to improve and protect your credit score.

Watch the video and keep your Credit Myths: Discredited Worksheet close by to follow along and take notes.

Video Transcript

Which came first – credit reports or credit scores?

Credit reports contain all the information that goes into figuring out your credit score – information about your payment history and credit utilization ratio, along with the other items we discussed in Chapter 1. 

Credit inquiries are one of the items found on your report and they make up 10 percent of your score. There are two types of credit inquiries: hard and soft. Hard inquiries may hurt your credit, while soft inquiries typically don’t make an impact. 

The bureaus. 

There are three major credit bureaus: Equifax, Experian, and TransUnion. What’s interesting to note about the bureaus is that each creates its own version of your credit report. 

You could keep an eye on the information they have by checking AnnualCreditReport.com. Checking in will help you monitor, adjust, and plan to make the changes you need to rebuild your credit score. 

Your Chapter 4 Checklist:

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