There is more or less a unanimous decision regarding which one matters more in life - credit score or report. Most people say that credit report matters more than score. After all, credit score is only a number.
The number part of the credit score is certainly important, but not as essential as how you reached there. Due to this reason, the main key to credit is your credit record or report.
Just sit back on your chair and think rationally. If there are negative items on your credit report, then your score will drop. It will affect your insurance premiums, job, interest rates on a , etc. The positive news is that you can change the look of your credit report unlike the score. You can do it by correcting the wrong information on your credit report.
Check out the 4 key reasons why you should give more attention on your credit report than score.
1. Your credit report can warn you about a possible identity-theft.
Sometimes, you find that the credit bureau has miss spelt your name. You think that it is a nominal error and over look it. However, has it ever occurred to you that it may not be the mistake of the credit bureau? An identity thief may have opened a credit account in your name. The thief may not know the correct spelling of your name and hence the error.
If you share your middle name with your father or any one else, then please check whether or not the credit bureau has sent you a faulty credit report. They bureau prepares millions of credit reports every year. So, it is not abnormal to receive your father's credit report by mistake.
2. Recruiters will check your credit report but not your score.
Recruiters can't obtain your credit score. However, they may get an abridged version of your credit report. They can go through your account and personal information. They want to know what kind of a person is going to work at their company - a financially irresponsible or responsible person. At the end of the day, if a person can't handle his money properly, then how can he manage the affairs of the company?
3. You can dispute items on your credit report but you can't dispute score.
If you feel that your credit report is inaccurate or imperfect, then you have the right to dispute it with the credit bureau in writing. Even if the facts are correct, then also you can share your side of the story with the credit bureau. The bureau will have to attach the information to your credit report unless your statement is proved wrong. Any lender who orders a copy of your credit report will receive the 100 word statement with it.
4. Insurance companies give importance to the information on credit report.
The insurance companies can't view your total credit report. However, in several states, insurance companies use important details on your report for the creation credit-based insurance score. This score is mainly formulated by firms like FICO. This score is very important in the insurance industry as the insurers can determine if a person is likely to file a claim.