To buy a car with confidence, it takes more than rigorous comparison shopping. Understanding the U.S. credit system, and some of the most common terms you will encounter, can be a major help.

For example, what is the difference between a credit score and a credit report?

The short answer is that credit scores—there are several different types—are ratings used by lenders to determine how much money you may be able to borrow to make a purchase, such as a car. A credit report is the document that contains those credit scores. A lender can obtain a credit report in order to learn a borrower’s credit scores. That borrower can also obtain a credit report to learn their own scores.

To understand more about the difference between credit scores and credit reports requires some knowledge of how credit works in the United States. To learn more, read on.

Defining Your Credit Score

Personal credit scores are ratings that lenders use to determine your creditworthiness. In the United States, there are three primary credit bureaus, each with their own score: Equifax, Experian and Transunion. Each determines a credit score by looking at how much money you make, how much you owe, your payment history and other factors.

Each bureau uses a slightly different methodology for determining credit scores, so while the scores are often similar they can differ at each bureau.

Lenders use these scores to determine how much you can borrow, your interest rate and other information that is critical to auto financing.

Defining Your Credit Report

A credit report is simply the document used to obtain credit scores from a credit bureau. It also generally has a great deal more information, such as which accounts you have open, how much money you owe and what your payment history is on each. In short, it provides the specific information that supports the credit scores.

If there are mistakes in your credit file, it is the credit report where these will appear. Each bureau can generate a credit report for a lender or a consumer. There are also “three bureau” reports that contain scores from all three bureaus.

As a consumer, you are entitled to see these reports containing your scores, which you can do by contacting the bureau. In the United States, you can get at least one free report from each bureau every year.

Reviewing your credit reports regularly is a good idea, to make sure the information the credit bureaus use to determine your scores is accurate. All three bureaus have processes for correcting inaccurate information.

When obtaining auto financing, most lenders will order credit reports to look at your credit scores from one or more bureaus. Smart buyers might therefore order a three-bureau report before they apply, so they know their scores and can calibrate expectations accordingly.

To learn more about how much you can borrow to buy your next vehicle, get pre-qualified for auto financing with Credit Acceptance. By filling out the online form, you can obtain a great deal of information, set your budget and arrive at the dealership well prepared.