Credit score, credit rating and credit report are often interchangeably used. However, they each have a different meaning.
A credit report outlines a detailed list of all the credit lines and payments done by the user. It will involve the following information:
Personal data of the user
A detailed list of closed and open loan accounts involving dept amounts of credit card
Credit inquiry by user
A public record of foreclosures, bankruptcies, judgment on civil suits, etc. Every credit report will contain a credit score.
A credit score is a three-digit number ranging from 300 to 900 and is contained in a credit report. A credit score is important because it proves a borrower's creditworthiness to all kinds of lenders. The score will go up and down depending on users' financial activities.
Credit rating is a quantified inspection of the creditworthiness of an applicant is referred to as credit rating. Any entity seeking to borrow a loan is liable to credit rating inspections, whether a person, a firm, a sovereign government, or state provincial authorities.