New Delhi, Dec. 12 -- For new borrowers in the country, understanding the difference between a credit report and a credit score is crucial. This knowledge is essential when applying for new credit cards, personal loans, home loans, or other credit products.

Both the report and the score originate from credit bureaus. India has several leading credit bureaus, including CRIF High Mark, CIBIL, Experian, and Equifax. These bureaus provide credit scores that define an individual's creditworthiness and repayment ability. Let us examine these two concepts and their significance for borrowers.

A credit report is simply a comprehensive document capturing your entire credit history. It contains details of recent transactions, any prior defaults a...