Are credit ratings and credit scores the same?

There is a difference between the two words, despite the fact that they are often used interchangeably with one another. The creditworthiness of a company or government may be communicated via the use of a credit rating, which takes the form of a letter grade.

A credit score is a numerical measure of a customer’s creditworthiness, and it may be used by individual consumers as well as by small businesses. Customers can use credit scores to make financial decisions. Ratings and scores are both aimed to indicate to prospective lenders and creditors the possibility that a borrower will repay a debt that has been incurred by the borrower.

They are not produced by the customers or the creditors; rather, they are produced by independent third parties. Both the organization that requests the credit score and the creditor are responsible for paying for it.

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