Topic
Credit scores
A credit score is a numerical estimate derived from information in a credit report and used by some lenders to assess credit risk.
At a glance
- Underlying data
- Credit-report information
- Important distinction
- Credit report and credit score are not the same thing
Overview
Credit scores summarize selected information from a credit report using a scoring model. Different lenders and scoring companies can use different models, so a person can have more than one score at the same time. Payment history, balances, account history, and other credit-report information can influence scores depending on the model.
Why scores can differ
A credit bureau may hold different information from another bureau, and lenders can request different scoring models or model versions. That means the number shown in one app is not guaranteed to be the exact number a particular lender will use for a decision.
Focus on the report as well as the number
Because scores are calculated from report data, correcting inaccurate information and maintaining responsible credit behavior can matter more than chasing daily score fluctuations. Consumers can review reports and dispute errors through the processes provided under federal law.
Sources and review
MOOR's explanatory text is supported by the following source links.
- What is a credit score? — Consumer Financial Protection Bureau
- Understanding Your Credit — Federal Trade Commission