Difference Between Credit Score And Credit Rating?

watch_later 6 months ago

I often come across 2 words:

  1. Credit Score, and
  2. Credit Rating

What is the difference between these 2 terms, Credit Score and Credit Rating? Are they same or every person has to scores to verify credit worthiness?

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1 Answer

GST Payer watch_later 6 months ago

Both terms represent similar indication. The main differences between credit score and credit rating are:

  1. Credit Score indicates credit worthiness of an Individual and Credit Rating represents credit worthiness of companies.
  2. Credit score is given by credit bureaus, credit rating is given by Credit agencies.

These are the 2 main differences between Credit score and Credit rating. However both are similar in nature that they provide credit worthiness of borrower.

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