Credit score vs. credit report: What’s what?

When you avail a loan you know that your credit report would be judged by the lender. A minimum credit score is required to qualify for the loan and the limit is usually 650 or 700. Your credit report and your credit score are two different terms which many of you use interchangeably. Though both of these terms indicate the basic meaning, they are actually different from one another. Do you know how?

Let’s understand –

What is a credit report?

A credit report is a detailed analysis of your credit history. It contains the details of your loans availed, credit cards and any other form of credit in your name. The report also contains the history of your past credit and any default or negative action related to your past credit.

What is a credit score?

A credit score is a three-digit numerical value assigned to you based on your credit report. The value ranges from 300 to 900 and shows how sound your credit profile is. The higher the score you have the better would be your chances to avail a loan easily. The score is calculated based on the credit information provided by your credit report.

Differences between the two

The basic key differences between a credit report and a credit score are given below as follows –

Credit report Credit score
It is a detailed account of the particulars of your past and present credit.It is a three -digit number which depicts your credit -worthiness.
The report contains your personal details too like your name, address, PAN Card details, etc.The score does not contain any information.
It is calculated by authorized credit bureaus based on your credit-related information availed from banks and financial institutions from where you availed any loan or applied for a credit card.It is calculated based on the credit report using various factors like your repayment history, credit mix, credit history, credit utilisation ratio, etc.
The report contains the details of your past credits too.The number is only a figure which does not indicate any information about your existing or past credit.

A credit report is like a mark sheet which shows your performance in different areas of credit while your credit score is a summarised gist of your performance in absolute numerical terms. The credit score can be calculated based on the data contained in the credit report but the credit report cannot be made based on the credit score only.

Connection between the credit report and the credit score

If your credit report is clean and there are no red flags, your credit score would be good. Alternatively, if you have a high credit score, your credit report would be assumed to be good and clean.

How to generate the two?

Both the credit report and the score can be generated through any of the authorized credit agencies. You would have to fill up a form stating your details and based on your PAN number, the report and the score would be generated.

So, now after knowing the differences between the two, you would not have any confusion between the two relatable terms.

SEE ALSO: Cibil Score – Check your Credit Utilization

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