Credit Report vs. Credit Score

Credit Report vs

Credit Report vs. Credit Score

Whether it is a credit history or a credit score both these concepts have been closely associated with the American consumers particularly for the last two years due to the global financial crisis and the overextended credits and debts which have wreaked havoc in the lives of the Americans. Majority of them had to call for bankruptcy procedures which had completely devastated their credit report, and lowered their credit scores for a longer period of time; however those who could merely survive the crisis had to take help of professional debt relief companies and law firms which had also affected their credit scores, though the effect was milder than that of a bankruptcy procedure. The citizens might not have ever been as intensely bothered with their credit reports and credit history, as it happened during the economic downturn.

A credit score is the quantitative value which is calculated on the basis of the information that is available from the credit file, used by the money lenders, landlords and employers in order to assess the credit risk of the consumer at that point of time. A credit score is typically a concoction of points, which helps to determine the credit worthiness of a consumer. There are several ways which the credit reporting companies use in order to calculate the credit scores, but the entire procedure is one of an intense mathematical computation which usually takes into account such factors as the payment history, followed by the loan amount that is owed, the length of the credit history and whether the credit is new or which type of credit is it. The credit score is not a constant factor, but keeps on changing over a period of time by keeping a notification of the present financial status of the consumer.

In order to ensure the fair status and dealing of a credit score, certain features and factors are excluded for instance race, religion, nationality, sex, age, salary, or for that matter any and every information that is not prognostic of the future credit performances. On the other hand a credit report is an abridged version of a consumer's financial reliability which provides an indication of the credit history that is how and when the bills and debts have been paid. The three credit bureaus in US which are Transunion, Equifax and Experian also referred to as the credit reporting agencies are primarily accountable for providing information which they acquire from the credit reporting companies such as banks and credit card issuers on the credit report which can be made available to the lenders and employers or in other words to a third party. Other than the information of identification, the credit report comprises of such things as the number and type of accounts that is handled by the consumer, payment history, outstanding balances and any other public record such as a bankruptcy filing or collection items. It is also inclusive of the list of those who have received the credit report on behalf of the consumer for a certain period of time also known as inquiries. Overall it is important that a consumer should keep himself informed about the credit history and also maintain a good credit score for an undeviating financial future.

POST COMMENT

No Fax No Credit Check Payday Loans – Easy Loan Scheme Bad Credit History Secured Loans-solve Your Big Fiscal Problem With Least Hassle Find Out the Myths about Credit Score The Pros and Cons about Zero Interest Credit Cards Three Simple Ways to Reduce Credit Card Debt Debt Settlements - Why Debt Settlements Are A Smart Choice For Creditors In This Economy Instant Payday Loans No Credit Check - Multi-Purpose Quick Finance Bad Credit Loans-Here is an end to your fiscal worries CLEP Out: Save Time and Money - Earn College Credit By Exam Your Questions Answered How Credit Matters When Buying A Car No Credit Check Loans - Credit History Is Not The Concern How to Get the Cheap Loans for Bad Credit? Payday Loans no Credit Check- Just for you