Differences between a Credit Score and a Credit Report
Most people often get confused between a credit score, and a credit report. More often than not, you might assume that they are the same things, just differently phrased. This happens especially if you are new to the working force, and do not understand factors like credit and how it works. This unavailability of information can usually enable you to focus on one thing over another, thus ruining your credit score before you have even gotten a chance.
A credit score is always used to predict your future investments, and to determine if you are a viable risk or not. A credit score is usually seen by people who you may be interacting in the future, such as a prospective landlord, or a money lender. Keeping a good credit score makes you be seen as a person who is fiscally responsible and trustworthy, and will not default on your payments.
A credit report is a document which chronicles all your past expenses and purchases. It is a history of about six to seven years, containing a record of every time you have used your credit card, and whether you have paid it back or not. It is usually asked for by employers looking to hire you, especially if you are applying in a financial firm. Having a good credit report usually means that you are aware of where your money is being spent, and you are responsible with your income. Furthermore, a good credit report can also get you better interest rates for credit loans.