Are you just entering the wild world of credit and trying to build a positive credit history?
You may feel a bit confused or overwhelmed. One common thing we often hear about is that people are confused about the difference between credit reports and credit scores.
A credit score provides lenders with a snapshot of your credit history by providing a three-digit number. Your credit score is the sum of the information on your credit report.
A credit score can differ from source to source, as there are different companies with unique scoring models. Some lenders modify scoring models for their specific reasons.
Here are a couple of important things to consider:
The Main Differences
You need to understand a few variations when it comes to the main differences between credit scores and credit reports:
Access – Banks and other companies can give you credit score access, though one of three major credit bureaus are the only ones that can give you access to your credit report. Each year, you can get one of these for free. What is important to note is that under particular circumstances, including the 2020 pandemic, you can receive free reports more frequently.
Inclusions – Your credit score is not included on your credit reports from major credit bureaus. Companies use the information found in these reports to generate a credit score. You don’t normally get access to all of your credit report’s information when you look for your credit score.
Finding Your Credit Report
One question we often get is,
What will I find in my credit report and what information will I receive from the majority of credit scoring platforms?
In most cases, you’ll receive the following personal information on your credit report:
- Account inquiries from different companies
- A list of your accounts, origin dates, account types, and balances
- Foreclosures, liens, bankruptcies, and other public financial records
- Employment information
In many ways, it is a summary of your life up to now. Credit reports usually cover anywhere from seven to ten years. There are things that often get removed from your credit report after this time, including collections, bankruptcies, and other derogatory marks
Should You Check Your Credit Score?
The main reason people don’t check their credit scores as often as they should is that they think they will diminish their score every time they check. When you check your credit score on your own, a “soft pull” is generated. Soft pulls don’t have any effect on your credit score. Soft pulls can be made as often as you’d like.
When lenders check your credit, they can either use a soft pull or hard inquiry. When you get a new loan or credit card, they might use a hard inquiry, which can have a negative impact on your overall credit score. It is crucial to note that a negative impact is temporary.
Tradelines Can Help
If you want to potentially increase your credit score, we recommend authorized user tradelines. You can purchase tradelines to take advantage of years of positive credit history, improving accounts that are in good standing.
You may see improvement, at the quickest, in 10-14 days! Get in touch with us here at Boost Credit 101 to learn more.