While most people talk about a credit score, it’s actually your credit report that you should care about.
Fundamentally, your credit report is a list of all the companies you have taken credit from over the last seven years. This includes loans, credit cards, hire purchase, store credit and mortgages to name a few. Your report shows if you have made the payments on money you have borrowed. Furthermore, it also shows if you have missed payments.
In addition, it contains your personal information such as full name, address and date of birth. Your credit report is a simple fact and there is no opinion or ‘scoring’ involved.
Credit scoring, however, is where three specific companies give your their your score, based on the contents of that credit report. That score will differ between the credit scoring companies as they all assess this profit vs risk conundrum in different ways.
Ultimately, you can’t influence their scoring mechanisms. But you can influence the information they use – the credit report. For this reason, your credit report is what really matters. Even small errors such as a typo in your address can cause significant issues so it is really important to make sure it is accurate.