What is the main difference between a credit report and a credit score?

The distinction between a credit report and a credit score is central to understanding how credit works in lending processes. A credit report provides a comprehensive summary of an individual's credit history, including detailed information about credit accounts, payment history, outstanding debts, and public records related to credit. It serves as a factual document that lenders review to assess the creditworthiness and financial behavior of a borrower over time.

On the other hand, a credit score is a numerical representation derived from the data contained within the credit report. It quantifies an individual's creditworthiness by distilling the detailed information into a single score that summarizes the likelihood of the individual repaying their debts. The score is typically calculated based on factors such as payment history, credit utilization, and the length of credit history.

Understanding this difference is critical, as the credit report offers the background and specifics needed to make informed lending decisions, while the credit score provides a quick, standardized way to assess risk at a glance. This relationship is why the correct choice emphasizes that a credit report details history, while a credit score quantifies it.