Credit Score Vs Credit Report: What’s the Difference?

Credit score vs credit report play a significant role when individuals apply for any form of credit. This article highlights the differences between a credit report and a credit score. 

What is a Credit Score? 

The credit score is a three-digit numerical value that indicates the risk factor associated with lending money to an individual. The top credit bureaus in India (TransUnion CIBIL, Experian, CRIF Highmark and Equifax) evaluate an individual’s credit score. The score generally ranges between  300 to 900, where anything above 750 is a good score. While a credit score above 800 is considered exceptional. For a new borrower, the score might be 0 or -1. 

The credit score of an individual depends on several factors, such as: 

• The repayment history of a person and whether or not they have defaulted on any of the past credits. 
• An individual’s credit utilisation ratio indicates the amount of credit used against the total credit limit. 
• The number of hard inquiries on your credit report shows the frequency of recent credit applications. 
• The age of the credit accounts. 
• The credit mix of an individual – a combination of unsecured and secured credits. 

What is a Credit Report? 

The credit report gives comprehensive information about the records of an individual concerning their credit/loan history, including identity information, credit accounts, repayment track, and recent enquiries. Credit reporting agencies gather the financial details about an individual from Banks and NBFCs. Based on a credit report, the lending partner evaluates the loan amount, interest rate, and offers that an applicant should get.

A candidate’s credit report contains the following information: 

Personal information 

• The name of the applicant, including the name and nickname used in credit accounts
• Current and previous residential address 
• Date of birth 
• Permanent Account Number (PAN) 
• Phone numbers

Credit account details 

• Creditor’s name 
• Present and previous credit accounts, along with the account type (instalment, mortgage, revolving or other)
• The total credit limit of an account 
• Amount Outstanding
• Account repayment history 
• No. of days overdue
• Overdue amount
• The opening and closing date of an account 

Also Read: 11 Common Myths about Credit Score

Differences between a Credit Score and a Credit Report 

The table below shows the key differences between a credit score and a credit report: 

Final Words 

The credit score gives an idea about the creditworthiness of an individual. On the other hand, the credit report enables the customer to get all the information related to their past and present financial activities. Hence, one should track their credit scores and credit reports periodically. At times, it helps to point out the errors in the credit reports and improve credit scores. 

Frequently Asked Questions