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Learn The Difference Between Your Credit Score and Your Credit Report

We’ve talked before about the importance of keeping track of your credit score and how to improve it. But did you know there is a difference between your credit score and your credit report? We’ll explain it in this issue.

What’s the difference between my credit score and credit report?

It’s important to know the difference between the two terms because they’re often used interchangeably. However, they are completely different things.

  • Your credit report is a complete record of your credit history and provides a general idea of how you handle debt obligations. It will include details about practically all of your major financial transactions, including mortgages, loans, credit card accounts, etc.

It will specifically detail how much you owe each of your creditors, how long your accounts have been open and whether or not you have a record of paying on time.

  • Your credit score, however, is a snapshot in time that shows your creditworthiness in the form of a three-digit number, usually ranging between 300-850. Whereas a credit report is akin to your overall report card, think of your credit score as a grade for an individual class.

Why it’s important to pull a copy of my credit report

So many people – from employers and landlords, to lenders and insurers – rely upon what’s in your credit report before making their decisions about your accounts. Because negative information in the report can result in you paying much more for your loans over the long haul, it’s imperative that you pull a copy of it to check its accuracy. Thanks to the Fair Credit Reporting Act, you’re entitled to an absolutely free copy of your credit report once every year from each of the three credit reporting companies (Equifax, Experian and TransUnion).

Get Serious About Dealing With Crippling Debt; Call The Oswalt Law Group in Arizona

For more advice about coping with crippling debt, get in touch with us here at The Oswalt Law Group. We have offices in Phoenix, Tempe and Peoria. The first consultation is always free, so call us at 602-225-2222.

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