Credit Scores vs. Credit Ratings

How does it happen?  How does something go from being called one thing to being called another thing.  Why did we start calling “Credit bureaus” by the newer name “credit agencies” or “credit reporting agencies”? For years we used the term “Credit Ratings” and somehow that changed.

Now using the term “credit rating” means one of two things.  First, it could mean that you are talking about business credit versus consumer credit.  Second, it could mean consumer credit, but the person using the phrase is clearly using old school terminology.

“Credit score” is the term most used today to describe consumer credit.  You can still type in “credit rating” in Google and get mostly the same results but the news stories are usually about a company having their credit rating reduced like:

Standard & Poor’s Ratings Services on Thursday lowered its corporate credit rating for retailer Sears Holdings Corp. to “BB minus” from “BB,” citing the “continued deterioration” in the company’s operating performance, as evidenced in the third-quarter results the Hoffman Estates company released earlier this week.

In most consumer situations, “credit score” and “credit rating” are interchangeable.

Post from: Video Credit Score

Credit Score vs. Credit Ratings – Episode #92