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

What is the difference between a credit score and a credit report Introduction: The Importance of Credit Hello everyone, and welcome to today's video. When it comes to managing your finances, understanding credit is crucial. It affects your ability to get a loan, rent an apartment, or even secure a job. Today, we'll be focusing on two key aspects of credit: the credit score and the credit report. While they may sound similar, they have distinct roles in assessing your financial health. Let's dive in! Defining the Credit Score Your credit score is like a grade that represents your creditworthiness. It's a three-digit number, typically ranging from 300 to 850, with a higher score indicating better credit. Lenders use this score to evaluate the risk of lending to you. Several factors contribute to your credit score, including payment history, credit utilization, length of credit history, types of credit, and recent credit inquiries. Credit bureaus, such as Equifax, Experian, and TransUnion, calculate these scores based on the information in your credit report. Understanding the Credit Report