By Info FCNB–October 30, 2026–9 min read
You’re applying for a loan, apartment or phone plan, and you hear the terms credit report or credit score. Maybe they’re mentioned quickly, maybe they’re on a screen, maybe someone says, “It’s based on your credit.”
If you’re not sure exactly what information is being considered, or you find the terminology confusing or intimidating - you’re not alone. Credit reports and credit scores are related, but they’re not the same thing. Understanding the difference can help you better understand how businesses use credit information and what rights you have when it comes to your credit report.
Credit information doesn’t tell the whole story.
Credit systems measure patterns, not people. They don’t reflect what may be happening in your life or how it impacts your finances, like job loss, illness, caregiving, or other major life events. If your credit was affected during a hard time, that often reflects circumstances and timing – not your worth or values.
A credit report (sometimes called a credit file) is a record of credit accounts and payment information connected to your name. Lenders may use it to confirm details when deciding whether to offer credit, housing or other services.
Your credit report can contain personal and financial information, including:
Any credit in your name, such as credit cards and loans
Whether payments were made on time or late
Past or current bankruptcies
Accounts or items sent to a collection agency
Court judgments registered against you
A list of companies that made inquiries or viewed your credit history
Your credit report is created the first time you apply for credit. That may be when you apply for a phone plan or rent your first apartment. Creditors send information, usually once a month, to credit reporting agencies to keep your report up to date.
Some types of information are not allowed to be in your credit report. This includes:
Protected personal details about your race, religion, political beliefs, gender identify or sexual orientation
Health or medical information
Certain unpaid or defaulted debts, taxes or fines or bankruptcies after a certain amount of time has passed
Certain court and criminal records after a certain amount of time has passed
The full details about what information can, and cannot, be included in your credit report is covered in the Credit Reporting Services Act. If you’re unsure whether something should still be listed on your credit report, you can check the Act or ask the credit reporting agency for clarification or to make a correction.
Checking your own credit report will not lower your credit score.
Not all credit checks are the same. Some are "hard checks", which can happen when you apply for credit. Others are "soft checks", such as when you view your own credit report. The important thing to know is that reviewing your own credit information is a good way to stay informed and check for errors. If you'd like to learn more about different types of credit checks and how they impact your credit, visit a credit reporting agency's website for additional information, like Transunion or Equifax.
A credit reporting agency (also called a credit bureau) collects and maintains information about your credit history. They receive information from lenders and other businesses and use it to create your credit report.
In New Brunswick, the Credit Reporting Services Act helps ensure that credit reporting agencies collect, use, and share credit information responsibly.
A credit score is one tool created for lending decisions. It is a three digit number that summarizes parts of the information in your credit report. Many lenders use it as a tool to estimate how likely it is they’ll be repaid on time.
Generally:
A higher score generally means you’re seen as less risky to lend to, and it may make it easier to qualify for some types of credit
A lower score generally means you may be seen as riskier to lend to, and it may make borrowing harder or affect the terms a lender offers
Lenders often look at other information as well, such as income or employment, assets and existing debts, not just your score. It is not a measure of your worth, character, financial intelligence or overall financial wellbeing.
A helpful way to think about it:
Your credit report is the full record
Your credit score is a summary number based on that record
The Commission regulates credit reporting agencies and certain practices involving credit report information in New Brunswick. It does not:
- create credit scores
- regulate the formulas used to calculate credit scores
- set minimum or maximum credit scores
- change or correct a consumer’s score
- resolve disputes about how a score is calculated
If information in your credit report is inaccurate, contact the credit reporting agency to request a correction.
A credit score only reflects certain information about borrowing and repayment. It doesn't show many other parts of financial wellbeing, including savings, financial goals, or the challenges people may be managing in their day-to-day lives.
Some people have low or limited credit scores because they have little experience using credit. For example, someone who pays for everything with cash or does not borrow money may have low or no credit score, even if they manage their finances well and have strong savings habits.
While credit reports and credit scores can affect access to some financial products and services, focusing on healthy financial habits can support your overall financial health, whether your score changes quickly or not.
Credit reports and credit scores are often checked when you apply for things like:
Car loans or mortgages
Credit cards
Rental agreements
Utility or cable services
The information in your credit report affects your credit score. Because businesses may rely on this information when making decisions, it’s a good idea to review your credit report periodically. If your report contains errors or outdated information, it can influence your score and the decisions others make using it.
With your consent, different types of organizations may request your credit report, including:
Lenders and creditors
Insurance companies
Landlords
Potential employers
They use this information to help decide whether to offer credit, housing, or services, and in some cases, it may influence the cost of the service. For example, credit information may be used by some insurers as one factor when determining eligibility, discounts, or premiums. Practices vary by insurer and type of insurance.
In Canada, credit reporting agencies must provide you with a free copy of your credit report once per calendar year, if you request it. They may charge for additional reports or services.
Credit reports may also be offered through third party apps or services. These services pull information from the main credit bureaus. If you use these services, it’s a good idea to read the terms and conditions carefully and understand how your personal information will be used before signing up.
When reviewing your credit report, it’s important to check that:
Your personal information is correct
Paid debts are shown accurately
There are no accounts you don’t recognize
If something doesn’t look right, you can ask the credit reporting agency to correct it. You may need to provide proof of the error, and the agency must notify anyone who received a copy of the report that the information has been corrected.
Yes. A credit score can change over time as information is added to or removed from your credit report.
But rather than focusing on a specific number, it may be more helpful to focus on the information in your credit report and the financial habits that support your overall financial health. Changes to a credit report and any resulting changes to a credit score generally happen with consistent behaviour over time, not one time actions.
Examples of healthy financial habits:
Paying bills on time
Understanding loan and credit agreements before signing
Checking your credit report regularly
Contacting lenders early if you’re having trouble making payments
Examples of unhealthy financial habits:
Applying for more debt that you can comfortably manage
Going over your credit limit
Some companies offer to “fix” or “repair” credit. These services may sound appealing, especially if you’re stressed or trying to solve a problem quickly, but everything a credit repair company charges for, such as disputing errors or requesting corrections, you can do yourself – for free. If you do choose to hire the help of a credit repair company, it’s important to understand what they can and can’t do.
Credit repair companies are not approved, registered, or licensed by governments, and they cannot guarantee results. However, in New Brunswick, there are rules in place designed to protect consumers that apply to credit repair agreements, such as:
A credit repair company cannot ask for or accept payment in advance. It is an offence for a credit repairer to take money or require security for payment before they have caused a material improvement to your credit report, credit information, file credit record, credit history or credit rating. In other words, they must not charge you upfront for promised results.
You have cancellation rights. If you sign a credit repair agreement, you may cancel it within 10 days of receiving the agreement by giving notice of cancellation.
If you cancel a credit repair agreement, the credit repair company has 15 days to refund any payment you made.
These rules are meant to reduce the risk of people paying for services that may not deliver the results promised. Understanding your rights can help you ask better questions and avoid unexpected costs.
A credit report and credit score are connected, but they serve different purposes. Your credit report contains information about your credit history. Your credit score is a number based on some of that information. Understanding your credit report, knowing your rights, and checking for errors can help you feel more confident when making financial decisions that involve credit. Now that you have a bit more understanding of how credit and credit reports work, take our 5 Credit Report Myths quiz and test your knowledge! You can also visit Credit, Debt & Loans to learn more.