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The Ultimate Difference Between a CIBIL Score and a CIBIL Report

An Experian credit score and a credit report are two important but very different components of your credit history. While a credit score is a 3-digit number, a credit report is a financial summary statement. When you decide to take any kind of loan from the market, you will come across the terms. It holds a significant amount of importance for loan providers while evaluating the loan application. The approval and rejection are completely dependent upon the credit score and credit report. Although the terms “credit score” and “credit report” sound similar, they are very different from one another.

What is a credit score?

A credit score is a digital 3-digit numeric number that represents your credit report. Eventually, the credit score is determined based on the kind of credit report you have. If you have all the elements of a credit report perfectly balanced, you will eventually have a good credit score. In short, a credit score is a three-digit number that determines credit health. It will not offer a lot of information or detailed analysis of the credit health of individuals. It is a simple number that represents a category of credit health. The range of credit scores is between 350 and 900. A good credit score is one that is above 750 when you do credit score check online free. Financial institutions always check credit scores before approving loan applications.

What is a credit report?

A credit report is a detailed summary report of the entire credit background and financial history of an individual. It’s not a 3 digit number, but an entire detailed analysis of credit. By going through the credit report, it is easy to understand the credit behavior, financial history, and credit activities of the individual. What is a summary history or analysis of the entire credit activities conducted by an individual? Every single credit account, payment, credit history, loan application, and hard inquiries are mentioned in the credit report. Since it is a detailed statement, it is very informative. On the basis of a credit report, a credit score is given to every individual.

What is the distinction between a credit score and a credit report?

Informative

If you compare a credit score and a credit report on the basis of the information they deliver, the credit report is much more informative. A credit score does not offer any detailed information, but it is only a representation of the credit report. On the other hand, a credit report is a detailed representation of the credit history of an individual. By going through the credit report, you can gain a complete understanding and every piece of information about your credit history. Since the credit score is just a numerical digit, you will not be able to gain complete information about your credit health.

Errors and omissions must be identified

When you check your credit score, you just get a simple 3 digit numeric value. It helps you to understand whether you have a good, average, or bad credit score. There is no possibility that you can understand whether your credit score is bad because of errors or mistakes. However, when you check your credit report, you eventually get to know whether there are errors and mistakes that are damaging your credit score. When you go through your credit report in a completely detailed manner, you will be able to find small errors. It can be any mistake regarding your personal information, credit account, financial activities, or payment. Therefore, if you want to improve your credit score, you need to look for information and errors in your credit report and not in your credit score. Learn how to get a business loan.

Representation

A credit score is a simple three-digit numeric value. On the other hand, a credit report is a detailed summary that includes all the factors that are important for a credit score. Every factor-like credit mix, credit utilisation ratio, payment history, and hard inquiries are mentioned on your credit report. Therefore, a credit score is just a numeric representation, while a credit report is a detailed summary of your entire credit history.

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Scope of improvement

If you compare a credit score and a credit report on the basis of improvement scope, the credit report is much more advanced. While a credit score may just tell you whether you have a good credit score or not, a credit report tells you which areas to improve. Therefore, with the help of a credit report, individuals are able to improve their credit score by working on all the loopholes.

Wrapping up

An Experian credit score is one aspect of the credit report. A credit report is the summary of an individual’s credit history, then a credit score is a 3 digit numeric summary of that individual’s credit report. You should do credit score check onine free to stay updated about your credit health.

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