A credit report shows current and historical obligations, as well as monthly payment history for ongoing loans and credit cards, as well as loans that have been paid off in whole. Payment histories show whether you paid your payments on time, as specified in your loan agreement, or if you were late by 30, 60, or 90 days. You probably don’t have credit reports yet if you never had credit accounts. Credit reports may be used to evaluate eligibility for loans, rents, credit card, insurance policies and employment by applicants.

Now, what is a credit score? You should have a fair grasp of the way to monitor your credit score while looking at your credit report. Your credit score is a three-digit number that often runs from 300 to 850 on your credit report. A score between 700 to 749 is generally regarded acceptable, anything beyond 750 is considered outstanding. For any person or entity having a PAN card and with any type of credit transaction Credit ratings are generally assigned. This is provided by credit agencies, who in turn obtain information from lenders around the country. 

So, what is the difference between these two?

  • A credit report is a written description of a person’s credit history that serves as a credit reference. Credit score, on the other hand, is a three-digit summary of an individual’s credit report that assesses credit risk based on the information contained in the report.

  • Credit reporting bureaus Equifax, TransUnion, and Experian. Banks, on the other hand, can occasionally develop their own score or use ratings from firms like VantageScore or FICO. FICO scores are the most widely used.

  • Each of the aforementioned bureaus maintains three credit reports. Because lenders and creditors are not required to disclose information about a person’s credit history to all three agencies, the information supplied by each differs slightly. However, after FICO 9 is completely deployed, there will be 65 distinct FICO ratings to choose from. VantageScore’s credit scores are divided into three generations. There are a variety of bank proprietary scores available.

  • A credit report comprises information on an individual’s current and previous credit accounts, as well as information on debts and third-party collections. Credit reports also include information such as the current balance, loan amount, payment history, and so on. FICO credit scores, on the other hand, are the most widely utilised and comprise five criteria that are taken into account while determining the score. These indicators include the amount owing, payment history, credit mix, new credit, and credit history duration. Scores above 760 are regarded good, and those with this score are considered creditworthy.

  • A credit report is an independent document. Credit score, on the other hand, is based entirely on the information included in a credit report.

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