They are used interchangeably but they are not always the same.
Visualisation is forming the mental image of something. It usually
requires previous knowledge. Visualisation involves mental inspection of an image from all possible angles and distances. There is more attention to detail. If I were to ask you to visualise the future, for instance, you would be forming a mental snapshot of your version of future and you would mentally zoom in and out of that picture and come up with an explanation for the same.
Imagination, on the other hand, is not always about visualisation. For
example, you could imagine
what would it feel like to be hugged by a snowman.
what would dew drops on a cold morning smell like. what would spicy chocolate muffin taste like. what would you say if somebody proposed to you on the spot.
Imagination is concerned with both tangible and intangible aspects of our lives, unlike visualisation where only tangible aspects are considered. Also, imagination does not necessarily require previous knowledge. Unlike visualisation, imagination is not always concerned about the intricacies of details. It is more "in the moment", so to speak. For example, if you are imagining playing in the rain, you are more concerned about the experience itself rather than, say, looking at the landscape of the place.
"How would a new colour look like?" is a question pertaining to imagination.
"How would I look in a blue shirt and orange pants?" is a question pertaining to visualisation.