What is the difference between a credit report and a credit score?

A credit report and a credit score are two distinct components that are integral to understanding an individual’s credit history and financial standing. A credit report is a comprehensive document that provides a detailed account of an individual's credit history. It includes information such as personal identification details, payment history, accounts opened or closed, credit inquiries, and any public records such as bankruptcies or liens. Essentially, the credit report acts as a financial resume that lenders review when determining an individual's creditworthiness. In contrast, a credit score is a numerical representation derived from the information contained within the credit report. This score typically ranges from three hundred to eight hundred and is calculated using various factors, including payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries. The credit score provides a quick snapshot of an individual's credit risk, allowing lenders to make faster decisions regarding loan applications or credit extensions. Both a credit report and a credit score serve important roles in the credit evaluation process. While the report provides detailed information, the score offers an easily interpretable assessment of that information. Individuals interested in understanding their credit status should consider reviewing both components, as they collectively influence financial opportunities. For those seeking specific information or assistance regarding these topics, visiting the relevant Equifax Canada website can provide additional insights and resources.