Whenever you decide to take any kind of loan from the market, you will come across the terms "credit score" and "credit rank". An individual's and a company's credit score and credit rank both make them eligible for borrowing. It is very important for individuals as well as businesses to understand the relevant factors that help them be eligible for borrowing in the market. Credit score and credit rank are not the same things, even though they deal with the same thing. It is very important to understand the difference between the two so that you might be able to use them in the right way. Make sure you do not confuse both of them, as each one of them serves a different purpose altogether. Let's look at some of the key distinctions between online credit score and credit rank.
Representation
While your CIBIL rank is a numeric
summary of your company credit report, your credit score is a 3-digit numeric
summary of your CIBIL report. A CIBIL rank is counted anywhere between 1 and
10, where 1 is considered the best rank. And, the CIBIL score ranges anywhere
between 300 and 900. Credit is given to an individual or company on the basis of
first or second lien, depending upon their credit health. However, the credit
score is between 300 and 900 on the basis of credit activities and credit
profile. The representation of credit score and credit rank distinguishes one
another on the basis of the way they are represented. When an individual or
company attempts to obtain a line of credit or loans from the market, both
credit score and credit rank are used. Learn how to get a business loan.
Usage
The second most important factor is
the difference between credit score and credit rank; it's the purpose for which
they are being used in the loan market. The
credit report is used by the individual when they try to get any kind of
loan in the market. When an individual needs a personal loan or a housing loan,
you can always get help from a good credit score in order to get the loan
approval. A credit score is applicable only to individuals. On the other hand, credit rank is
applicable only to companies and business enterprises. If the business tries to
take any kind of loan for the business, the credit rank of the business will be
checked by the loan provider. The credit rank represents the business stability
and financial health, which helps it in getting the right loan experience.
Get your online credit score from Clix Capital. You can also check your credit report for free and stay
updated.
Read More : Get a better plan to avail the
best business loan
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