Many of you would not be knowing the basic difference between these two terms, credit score and credit report. However, both of these terms sound similar but in actual they are different from each other as they have been used interchangeably.
A credit score is a three-digit number which ranges between 300 to 900. The better the score, more are your chances to get the loan approved quickly. Your credit score shows how creditworthy you are meaning how likely you are to repay a loan on time. Credit report companies or credit bureaus calculate your credit score using different parameters like payment history, amounts owed, length of credit history, new credit and types of credit, among others. This calculated score keeps on changing over a period of time.
On the other hand, a credit report is a summary of all your financial reliability like your history related to paying your credit card and debit card bills. Credit report agencies provide information received from credit reporting companies like credit card companies and banks which is available to the third party like lenders and employers with whom you want to avail a loan. Credit reports also include information like number and types of accounts you have, your previous payment history, outstanding debts u have, number of loans you have applied etc. Whenever you apply for a credit card or loan, the company you apply with requests a copy of your credit report from one of these credit bureaus like Equifax, TransUnion CIBIL, Experian, Highmark etc.
REAS MORE: Credit score vs. credit report: What’s what?
Comments