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

The distinction between a credit score and a credit report is fundamental to understanding personal finance and credit management. A credit score serves as a numerical representation of an individual's creditworthiness, typically ranging from 300 to 850. It summarizes the individual's credit risk at a glance, enabling lenders to gauge the likelihood of repaying borrowed funds.

On the other hand, a credit report provides a comprehensive account of an individual’s credit history, including details such as credit accounts, payment history, credit inquiries, and any public records such as bankruptcies. It offers a more in-depth view of a person's financial behavior, which can influence the credit score calculation.

Because of this relationship, option B accurately captures the essence of both concepts, highlighting that the credit score is a summary metric and the credit report is a detailed documentation. Understanding this difference is crucial for individuals working in financial counseling, as it enables them to assist clients in managing and improving their credit health effectively.