Your creditworthiness is crucial in securing loans, credit cards, and even renting a home. However, many people often confuse a credit report with a credit score, assuming they are the same. While both are essential financial tools, they serve different purposes. Understanding the differences between credit report and credit score can help you manage your finances better and improve your credit health.
A credit report provides a detailed history of your credit activities, whereas a credit score is a numerical representation of your creditworthiness based on the information in your credit report. Lenders, banks, and financial institutions use both to assess your ability to repay borrowed money. Let’s explore the differences between credit report and credit score in detail.
Table of contents
Key Differences Between Credit Report and Credit Score
A credit report and a credit score serve different functions but are interconnected. The credit report contains detailed financial information, while the credit score summarises this data into a single number.
Below is a table that highlights the major differences between them:
| Basis | Credit Report | Credit Score |
| What it is | A credit report is a detailed document containing details of your credit history, including loans, credit cards, and repayment history. | A credit score is a three-digit numerical score representing your creditworthiness. |
| Who uses it | Banks, financial institutions, landlords, and even employers in some cases. | Lenders, banks, and financial institutions to assess loan approvals. |
| Purpose | Provides an overview of your credit behaviour and helps in risk assessment. | Helps lenders determine the likelihood of you repaying loans on time. |
| Factors that influence it | Credit history, payment history, credit utilization, credit mix, and inquiries. | Payment history (35%), credit utilization (30%), credit history length (15%), credit mix (10%), and new credit inquiries (10%). |
Why Are Both Credit Report and Credit Score Important?
Both your credit report and credit score are crucial when applying for financial products like loans and credit cards. Lenders, banks, and even landlords rely on these tools to assess your financial reliability before approving credit or rental agreements.
A credit report provides an in-depth record of your financial history, including loan accounts, credit card usage, repayment behaviour, and past inquiries. It helps financial institutions analyze your borrowing patterns and determine how responsibly you manage credit.
If you plan to take loans but have derogatory remarks on your credit report—such as late payments, collections, or charge-offs—it’s essential to address them. Fixing these issues can improve your creditworthiness, making you eligible for better loan terms and financial opportunities in the future.
On the other hand, a credit score is a three-digit number derived from your credit report. It serves as a quick reference for lenders to gauge your creditworthiness at a glance. A higher score often leads to better loan approvals and lower interest rates.
Maintaining a good credit score and a clean credit report can open doors to better financial opportunities. By regularly checking and improving both, you can enhance your financial stability and access credit on favourable terms.
Also Read: Check here some important tricks on how to remove derogatory marks from credit reports.
How to Check Your Credit Report and Credit Score?
While both credit reports and credit scores are provided by the same credit bureaus, the process to check them may differ.
A credit report requires detailed verification and may involve additional steps such as identity authentication. In contrast, a credit score is easier to access and is often displayed on banking or financial platforms as a quick reference.
Regularly checking both helps in identifying discrepancies and improving financial health. Let’s quickly explore the ways to check your credit score and credit report.
Ways to Check Credit Score
Your credit score can be tracked through credit bureaus or various financial service providers that offer free credit score checks. Many banks and fintech apps also provide customers with an option to check their credit score periodically.
Check out the different ways to check your credit score and the steps to follow:
Credit Bureaus
In India, there are four main credit bureaus where you can check your credit score: CIBIL (Credit Information Bureau India Limited), Equifax, Experian, and CRIF High Mark. Some bureaus offer a free credit score check once a year, while others might charge a nominal fee for detailed reports.
Steps to check your credit score through credit bureaus:
- Visit the official website of the chosen credit bureau (e.g., CIBIL).
- Create an account or log in if you already have one.
- Enter required details such as your PAN, Aadhaar number, date of birth, and phone number.
- Answer verification questions related to your credit history.
- Access your credit report instantly.
Bank or Financial Institution
Many banks and Non-Banking Financial Companies (NBFCs) provide free credit score checks as a service to their customers. You can check your score by logging into your internet banking or mobile banking app.
Steps to check credit score through your bank:
- Log into your internet banking or mobile banking app.
- Look for options like “Check Credit Score” or “Credit Health Report.”
- View or download your credit score directly from the app.
Through Credit Score Apps
Another convenient way to check your credit score is through FinTech platforms. These apps provide easy access to credit score tracking and additional features like score improvement suggestions and alerts for significant changes.
Popular credit score apps in India:
- CIBIL Score and Report
- Paisabazaar
- BankBazaar
- Experian Credit Report & Score
- OneScore
Please note that some platforms may charge a fee for more frequent score updates or detailed insights into factors affecting your score.
Also Read: Wondering what is past due reflected in a credit report? Check this blog and know what is Days Past Due in the CIBIL Report.
Ways to Check Credit Report
You can check your credit report from authorized credit bureaus such as CIBIL, Experian, Equifax, and CRIF High Mark in India.
These credit bureaus provide one free credit report per year, as per RBI guidelines. To access your report, visit the official website of the bureau, enter your details, and request a copy of your credit report.
FAQs on the Difference Between Credit Report and Credit Score
No, a credit report contains your credit history, while a credit score is a numerical representation of your creditworthiness.
A credit report is a detailed history of your credit activities, while a credit score is a numerical value derived from your credit report that represents your creditworthiness.
Both are important. A credit score gives a quick snapshot of your creditworthiness, whereas a credit report provides detailed insights into your financial behaviour.
It is advisable to check your credit report and credit score at least once every three months to ensure accuracy and detect any fraudulent activities.
No, checking your own credit score is considered a soft inquiry and does not affect your score. However, multiple hard inquiries by lenders can lower it.
To improve your credit score, pay bills on time, maintain a low credit utilization ratio, avoid excessive loan applications, and review your credit report for errors.
A CIBIL score is a three-digit number, whereas a CIBIL report contains a detailed credit history.
A credit rating assesses business credit risk, while credit reporting tracks individual credit history.
Yes, if you have no credit history, you may not have a credit score.
No, credit reports do not always include your credit score; you may need to request it separately.
Yes, if you have never taken credit.
It is a poor score, indicating high credit risk.
Pay bills on time, reduce debt, and maintain a low credit utilization ratio.
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