Credit score vs credit report vs credit history: What's the difference?

Have you ever wondered what people mean when they talk about your credit ‘score’, ‘report’ or ‘history’?

These words might sound the same, but they actually mean different things. Let's break them down so you can understand your credit better!

What is credit history?

Think of your credit history as your money story. It shows how you've handled money over the last six years. Three big companies in the UK keep track of this story: Equifax, Experian and TransUnion. These are called credit reference agencies.

Your credit history includes:

• Your name, address, and date of birth
• Whether you're registered to vote, e.g. being on the electoral roll
• Any money problems you've had, e.g. bankruptcy, CCJs or an IVA
• People you share money with, e.g. through joint bank accounts
• The money you've borrowed, e.g. loans and credit cards
• Records of who has looked at your credit history
• Any fixes made when something was wrong in your records

For each loan or credit card you have, your history shows who lent you money, how much you borrowed, your payment record, and when you opened the account.

What is a credit report?

Your credit report is like a snapshot of your credit history. When you ask to see your credit information, this is what you’ll view.

Your report shows your credit history exactly as it looks at that moment. But sometimes the information might seem a bit old. Don't worry - this is normal! The companies you borrow from usually only update the credit agencies once a month.

For example, if you used your credit card yesterday, it probably won't show up on your report today.

Looking at your credit report regularly helps you see if your credit is getting better or worse over time. You can get a free report from any credit agency or use a service like CredAbility to see your Equifax report whenever you want.

What is a credit score?

Your credit score turns your credit information into a simple number. It helps you quickly see how attractive you look to lenders.

The higher your score, the more companies will want to lend you money. You'll also usually get better interest rates.

But here's something important: there is no single credit score that everyone uses. Each credit agency has its own way of calculating your score. So your score with Equifax might be different from your score with Experian.

Don't worry though - if you have a good score with one agency, you'll probably have a good score with the others too.

Think of your credit score as a quick way to check if your credit history looks healthy. If your score isn't as good as you hoped, look closely at your credit report to find out why.

What do lenders actually use?

When you apply for a loan or credit card, lenders check all three - your history, report, and score. But they don't use the same score you see.

Instead, each lender creates their own special score for you based on what matters most to them. This is their secret recipe for deciding who gets approved.

Why this matters to you

Even though your credit history, report, and score are different things, they all work together to show lenders if you're good with money.

If your credit history shows you always pay on time and don't borrow too much, you'll likely have a good credit score. This means more lenders will want to work with you.

But if you've missed payments or maxed out your credit cards, you might find it harder to borrow money. As well as this, the lenders who say yes might charge you higher interest rates.

How to improve your credit

Here are some simple ways to make your credit better:

• Always pay your bills on time
• Stay well below your credit limits – preferably using less than 30% of what’s available
• Only apply for credit when you really need it
• Check your credit report regularly for mistakes
• Register to vote at your current address

Remember, building good credit takes time. Be patient and keep making smart money choices!