A considerable amount of consumers’ financial information goes into the creation of their credit reports and scores, which are developed and determined by three agencies: Experian, TransUnion and Equifax.

Credit Reports

So when you get your credit report from each of these reporting firms, you’ll find they have taken into account your payment history and debts, among other major financial factors.

Also, these reports will detail all aspects of your entire past credit history. This information can be used by employers and lenders when they determine if you’re a worthwhile risk to hire and lend to.

Credit Scores

Separate from credit reports are credit scores, also called FICO scores. The three bureaus also have a hand in developing these scores. However, they aren’t featured in your credit report. Rather, these scores provide a simplified indication of where you stand in terms of credit.

But, these FICO scores aren’t the only ones created for you, though they are typically the most common ones utilized by employers and lenders. One thing many consumers don’t realize is that each of the three scores can be different from one another, as each bureau has its own methodology in producing scores.

How to Improve Both

Though credit reports and scores from Experian, TransUnion and Equifax are different, to fix your reports and scores levied by them, you can do some of the same things.

For instance, paying credit card balances in a timely fashion and in their entirety and showing responsible spending habits can help raise your standing in both your report and scores.