Credit Rating vs Credit Score
What is Credit rating versus a Credit Score? The two terms are used in a similar context and that is to determine a borrower's level of eligibility for credit. However, they are interpreted in two completely different ways, lets find out..
Credit Rating is graded on a scale of letters such as A, AA, B, BB, etcetera. A credit rating is used to measure the creditworthiness of medium to large businesses or government entities. Considering that businesses operate in larger scales of money and business book keeping is more complex than that of an individual.
Credit Scores on the other hand is expressed in a numerical sense that usually fits into a range in which a level of credit is permitted when applying for personal loans, mortgages, lease cars or new credit cards. Credit Scores are allocated to determining the credit eligibility of individuals and small businesses.