Knowing the difference between a credit score and credit report

Joann Deal, from the Better Business Bureau, joined us to talk about the Marketing of Credit Scores.

Deal says if we have questions about debt and credit to visit the Federal Trade Commission Credit blog, which features helpful information regarding debt and credit.

She advises that if you want to improve your credit score, one should start by obtaining a copy of their credit report from annualcreditreport.com.

Deal says the internet is full of credit monitoring/repair services advertising; they can help you improve your credit score.

She warns we should be cautious of such because those companies are limited in what they can do to help you improve your credit score.

Deal says we should check with the BBB site before using such services.

annualcreditreport.com provides the only government-authorized and government required free credit report.

It contains reports from each of three major credit reporting agencies Equifax, Experian, and TransUnion.

She highlighted the difference between the credit report and the credit score.

The credit report contains a record of outstanding loans, payment histories, and whether there are bankruptcies on your record.

The credit score is based on the information in the credit report. The credit score matters because it is an indicator of how one pays his/her bills and can affect the ability to obtain credit.

It is also used to determine loan repayment interest rates.

Deal says that if you need help in reading your credit report, the FTC blog provides information to assist in understanding the credit report.

If you’re interested in improving your credit score, the BBC site features information from the FTC that will help you improve your credit score.

If you would like more information regarding this story, please contact the BBB at 318-387-4600.