What is the Difference Between Credit Score and Credit Report?
Users are advised to follow the risk report and credit score, which is also called a credit report, through current free annual credit reports and try to improve them.
Those who make banking transactions, use active credit cards in the system, have a credit, have an overdraft account or have closed their accounts in the last 5 years have a credit score.
There is no credit score if there is no active transaction for 5 years. As a result of the request of the users, the credit score is learned, the post-demand checks are performed for the persons whose grade is not calculated and the report is issued on the person’s transactions. The credit report includes all details and credit score.
The credit requests received depending on the functioning of the banks are evaluated according to the amount of the credit requested first. Then, the credit report of the customer requesting a credit is reviewed in detail and the approval process develops accordingly.
What is a Credit Report?
The risk report including details such as credit scores can be explained as a summary of the financial situation of the person. The report can be issued as free annual credit reports by banks or financial institutions, giving an idea of the way in which people are paid, what order they make, debts, debt interest, and at what intervals.
It is clear from the credit report that the person can buy new credits. While preparing the report, individual loans, credit card, existing accounts, investments, newly opened credits and credit usage density are examined.
What is a Credit Score?
All points affect the credit score with certain percentages. The specified credit score varies between 300 and 900. The higher the score, the higher the credibility. As credit ratings increase, the report summarizes your risk status.
The report, which determines your chances of getting a credit, needs a few months of preliminary work in order to get a high score. You can conduct individual studies to increase your credit score, or you can also get referrals from financial experts or individual bank consultants.
Which factors determine your credit report?
One of the determining factors for the credit report is regular payment. The credit card debt of the person to deposit on the minimum amount, to pay the day of loans, to reduce the debt, investment grade can raise.
Paying credits and credit cards on time and trading on account increases the reliability of the bank. In addition, the credit card limits are not exceeded and the borrowing frequency is taken into account when calculating the credit score. In this case, all transactions you make to your free annual credit reports are reflected in a positive or negative way.
After all debts are closed, it is possible to make a regular payment by taking a low-limit credit card or to increase your score with a low amount of credits if you have never received a loan before.