: How do credit scores work? How do they differ from credit ratings? I've heard both these terms used - are they synonymous? Or is one for Canada, one for the U.K. (or U.S.)? What are the various factors go into determining

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Credit ratings are the same as credit score, but they very different from a credit report.

A credit score is a calculated number based on a usually secret formula that attempts to quantify with math a consistent number that ranks everybody equally and uniformly as to the risk they present to a lender.

Basically, we are all just a number; the higher the better.

Your credit report is a detailed list of all your accounts, how well you pay them and if you are behind or have settled them as agreed. It is a detailed history of how you use credit, who you have credit from, how long you have had credit, and how much credit and debt you carry.

A credit report relies on lenders honestly and accurately stating how your account is performing with them. Some radio show hosts (Clark Howard) say that up to 70% of United States citizens have a mistake on their credit reports.

The credit report is the source of values that are computed into your credit score.

By and large, your credit score gives a lender a good idea if you are acceptable, but if you number is on the line, they MIGHT choose to read your credit report to make a decision by a human. Your credit score is how retail stores can offer and immediately approve store cards. If you number is high enough, credit you get.

Source: www.annualcreditreport.com/
EDIT: I didn't read well the first time, but sine I typed it I will leave it here. Sorry for rushing and not reading well.