From the day you are eligible to own your first credit card, credit referencing agencies such as Experian and Trans Union start to collect information on your financial history. This information goes into making your personal credit report and is used to determine your credit score. Banks use this information to help them decide which banking products, such as loans and credit cards, will be suitable for you.
The Difference Between a Credit Score and a Credit Report
Your credit score is a number between 300 ( poor ) and 900 ( excellent ) used by banks to determine which of their products you are eligible for. This number is also called a FICO score after Fair Isaac & Co. who developed the first scoring systems in the 1950s. A credit report is far more detailed and contains information about your financial activities from around the age of eighteen. Your financial report is used by banks to determine your credit score.
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