In the space of borrowing, you will always come across the two most popular terms: credit score and credit report. These two terms help financial institutions decide whether the borrower is creditworthy and eligible for borrowing. If you are new to borrowing, it is essential for you to gain a complete understanding of your free credit score and credit report. These are the most important financial aspects that prove the creditworthiness of the individual. Based on these factors, financial institutions either approve or deny the loan application. Therefore, it is important to gain every piece of knowledge and insight about the difference between a credit score and a credit report.
● A credit score is just a 3-digit number or CIBIL score calculation. Every individual has a unique 3-digit number, which is known as their credit score. The score ranges between 350 and 900. On the other hand, a credit report is a detailed statement. It is not a score or any digit. A credit report is a detailed summary or analysis of the entire credit history. A credit score is just a financial, 3 digit number.
● A credit score is not informative. It gives you a little piece of information just by checking out the score. By checking the credit score, loan providers can get a rough idea of the credit history and financial stability. However, our credit report is very informative and detailed, stating every piece of information and detail about our credit history. Loan providers, while checking the credit report, find it very easy to have every piece of information regarding the financial history of an individual. It is very informative and helps loan providers make the right decision.
● By checking the credit score, you are not able to detect any errors. However, when you check the credit report, you are easily able to find any missing entry, error, or false information in your credit report. Your errors can pull your credit score down without your knowledge. Therefore, credit reports are an important thing to check so that you can report the errors and get them corrected. Learn How to calculate business loan by using business loan calculator.
Finishing up
Check your free credit score by visiting the official website of Clix Capital. Make sure you know all the factors that are used for the CIBIL score calculation. It will help you improve your score better.
Must Read : How To Check CIBIL Score Rating?
