Credit reports and credit scores

Novice level

A credit report is a record of your borrowing: loans, credit cards, repayments and missed payments. Credit bureaus collect it from lenders.

A credit score is a number built from that report. A higher score tells lenders you have repaid reliably, and usually helps you get lower rates.

You can look at your own report. Checking it does not harm your score, and it is the best way to catch mistakes or signs that someone has used your identity.

Basic level

Most scoring systems weigh similar things: whether you pay on time (the biggest), how much of your limit you use, how long you have had credit, the mix of credit, and how often you apply for new credit.

Credit utilisation is the balance on a card divided by its limit. Lower is usually better.

Paying only the minimum due on a card leaves the rest to attract interest, often at a high rate, which is a costly way to borrow.

Advanced level

Dispute errors in writing and keep the reference numbers. Fix the cause (for example a closed account still showing as open), not only the symptom.

Expert level

Scores are model outputs; different bureaus and versions can give different numbers for the same person. Compare reports, not just scores.

Professional level

Credit information is regulated personal data. Lenders have duties on accuracy, consent and dispute handling under local law.