Definitions
Credit Score
Investopedia says that your credit score is a number that shows your creditworthiness and is used by lenders to see if you will be able to repay your debts. It’s calculated based on your past credit history. Usually it is a number between 300-850 and the higher the number the better off your chances are at getting a loan.
The FICO score is the most widely accepted credit score system and is an acronym for Fair Isaac Corporation the company that reports to all financial institutions. In fact as we mentioned before there are other credit reporting agency, but this one is the prime number used for mortgages. A score that is under 600 will be least likely to get a merging. And it will be at a higher interest rate.
Credit RATING
Another term for the assessment that lenders give you for the worthiness of the borrower in the most broad and general terms. It can be assigned to any entity that seeks to borrow money.
Credit Report
The report of your credit history that was cerated by the credit bureau and used by most lenders to see if you can repay your loan.
It includes your personal information, summary of your history, details of your account, and inquires into your score.
ONCE you have bad credit appearing on your report there is little you can do to stop it, and the information will remain on there fro years if you do not take care of it. Remember, Bankruptcy filings remain on there for about 10 years.