Since then, many SME banks in the U.S., as well as in Canada, the U.K., and Japan, have implemented some type of credit scoring for SME borrowers. Difference between credit scoring and credit rating 16. Quite often, I have seen bankers talking about credit scoring and credit rating in the same breath.
Therefore, before I move any further, let me attempt to clarify the difference between credit scoring and credit rating. I would like to emphasize that these are two entirely distinct concepts and to be employed in distinctly different scenarios. So what are these differences?