What Are the Two Major Sources of Information About a Person's Credit?

Your credit is used to determine the risk that you'll default on money you borrow on a credit card or through a loan. Your credit report and credit score are two major sources of information about your credit.

Credit Report

A credit report is a compilation of most of your credit-based accounts, including credit cards and loans. It gives details about how much you've borrowed and whether you've paid on time.

Credit Score

Your credit score is a numeric summary of the information in your credit report. Credit scores range from 300 to 850, with higher scores being better.

Significance

Businesses usually use both your credit report and your credit score to decide whether they should approve your application for a loan.

Free Credit Check

You can check your credit report for free by visiting AnnualCreditReport.com and your credit score at CreditKarma.com.

Warning

When you check your free credit, watch out for sites that ask for your credit card information. These sites sign you up for a trial subscription and charge your credit card if you don't cancel.

References

• FCIC: Your Credit Scores
• FCIC: Building a Better Credit Report