Question

What is the difference between a credit score and a credit rating?

a.
A credit score and a credit rating are the same thing.
b.
A credit score is a measure of how much debt you have, and a credit rating is a measure of your creditworthiness.
c.
A credit score is a number indicating your creditworthiness, and a credit rating is a measurement of how your credit score compares to others.
d.
A credit score is a measurement of your creditworthiness from one major credit bureau, and a credit rating is a measurement of your creditworthiness from all three major credit bureaus.

Answer 1

A credit score is a numerical representation of an individual's creditworthiness based on their credit history, while a credit rating is an evaluation of an individual's creditworthiness by credit rating agencies.

Step-by-step explanation:

A credit score and a credit rating are two related but different concepts that are used by lenders to assess an individual's creditworthiness.

A credit score is a numerical representation of an individual's creditworthiness based on their credit history. It is generated by credit reporting agencies using a mathematical algorithm that takes into account factors such as payment history, credit utilization, length of credit history, and types of credit used.

A credit rating, on the other hand, is an evaluation of an individual's creditworthiness by credit rating agencies such as Standard and Poor's and Moody's. It is an opinion-based assessment of the likelihood that an individual will default on their loans based on factors such as previous borrowing history, ability to make timely payments, and other financial indicators.

Answer 2

A credit score is a number indicating your creditworthiness, and a credit rating is a measurement of how your credit score compares to others.

What is a credit score and a credit rating?

A credit score is a number indicating your creditworthiness. A credit score usually lies between 300 and 850. A credit score is used to estimate how likely it is that you would pay your credit.

A credit rating is a measure of in letters that expresses the credit worthiness of an individual.