Credit Score vs Credit Risk Assessment What’s the Difference
                     Credit Score 
vs Credit Risk 
Assessment: 
What’s the 
Difference?
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Define a credit 
score
Borrowing needs a lot of screening and 
eligibility processes to be fulfilled. It is 
not easy to simply get any fund 
requirement fulfilled without meeting 
the eligibility and going through the 
credit assessment. Financial institutions 
and loan providers are very particular 
when it comes to approval. Various 
elements and factors are taken into 
consideration. The main idea is to find 
the likelihood of the borrower's ability to 
repay the amount with interest. 
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Benefits of Credit Score
A credit score is a three-digit number that 
focuses on determining the creditworthiness of a 
borrower. It is important to find out the credit 
health and credit background of an individual. This 
three-digit score is offered after a complete 
representation of the credit report where every 
financial activity is recorded. Loan providers use 
this score to understand the discipline the 
borrowers follow while repaying the loan and the 
track record of customers before a huge amount of 
funds is risked. 
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Easy Loan Approval
This score helps gain enough knowledge about 
the borrower. The financial condition and habits 
in the future help to determine the future 
chances of risk and smooth repayment. The 
loan providers are only interested in one thing, 
and that is the loan repayment. If you manage 
to maintain a good score, then you will get an 
easy loan approval along with good rates and 
charges. 
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Which factors affect or impact your 
credit score? 
● Credit history, which accounts for 30% of 
CIBIL score calculations. This will include all 
credit accounts, like credit cards, loans, and 
any form of credit taken by the individual. 
● Miscellaneous factors, like how many 
applications have been made in the past, 
account for the rest of the 20%. This will 
include the number of times you have 
applied for a loan. This is why you should 
not keep applying for multiple loans. This 
part affects your score heavily by 20%.
A credit score is impacted by several 
factors. There are a lot of factors that 
impact the score by a certain percentage. 
Once you know the factors and their 
affecting percentage, it becomes easy to 
find the right ways to improve your credit 
report and maintain it. 
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Thank You
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Clix Capital Services Private Limited
Email: [email protected]  |  Mobile: 18002009898  
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