Credit: Scores vs Reports

Credit scores and credit reports. You have heard and read these terms multiple times. You may have used them yourself and that is good, but do you know the difference between both? Although closely related, these terms should not be used interchangeably simply because they do not mean the same thing.

Credit Score:

This is probably what you are referring to when you say, ‘my credit report on Allawee is 700’. It is a measure of an individual’s creditworthiness and it helps a lender determine if they should give you services on credit and at what rate. It is very important, and we always advise as much effort as possible should be put into ensuring you maintain a good score, so it does not end in tears.

The most common type of credit score is the FICO score. A score above 700 is considered a good score while a score above 800 is considered an excellent score. On the Allawee app, your credit score is free to view once you open your home page. Yes, you can always find your credit score on your Allawee home page because we are simply the best. Take note of this figure, work with our recommendations, and improve your score if necessary.

Credit Report:

A credit report on the other hand is a detailed history of your credit. This report is used to calculate your credit score, but it does not contain your score. Often many pages long, it holds a comprehensive list of your credit score payment history, details your account and how often you pay up your debts. If you do not have a credit account, you probably do not have a credit report.

There are three certified bureaus in Nigeria that compile credit reports, CRC Credit Bureau Limited, CR Services Credit Bureau PLC, XDS Credit Bureau Limited. You can easily generate your credit report from the Allawee app for a little fee and it will be delivered directly to you. Again, aren’t we the best?

Your Credit Score is Not Your Credit Report

If you do not take away anything from the above, take this: Think of your credit report as your school report card. It holds all your courses and their individual grades while your credit score is your averaged grade for the end of the term, and it determines your parent’s reaction when you get home. We hope we have done the good work and that the next time you hear these terms used in the wrong context, you spread the good message to others.

Go forth and prosper,

Allawee out!