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Equifax Credit Score: How to Check, Importance & Benefits
The Equifax Credit Information Services Private Limited (ECIS) (usually known as just Equifax) is one of the four credit bureaus licensed by the Reserve Bank of India. Equifax was started in 2010 and is a joint venture with Equifax Inc. USA and a number of leading financial institutions in India. These include, Bank of Baroda, State Bank of India, Kotak Mahindra Prime Ltd, Bank of India, Sundaram Finance Limited, Union Bank of India, and Religare Finvest Limited.
Like the other bureaus, Equifax receives credit information from banks and financial institutions and uses this information to create credit scores, credit information reports, and other services.
What is Equifax Credit Score?
A person’s Equifax credit score is a 3-digit number between 300 to 900 that summarizes their credit history. This is calculated using information provided by credit lenders like banks and financial institutions. This information is also compiled into a more comprehensive Credit Information Report.
This report includes a summary of all the person’s loans and credit cards, their repayment history, and personal identification information collected from the lenders where they have taken a credit card or a loan.
An Equifax credit score is said to represent a person’s creditworthiness. Essentially, a higher score tells a potential lender that a person has a good history of repaying bills and loans, and can help to decide whether or not to approve their loan applications.
What is Good and Bad Equifax Credit Score?
Credit information companies have individual systems of credit scores, and an Equifax credit score ranges from 300 to 900, with 900 being the highest possible score. Generally, a score above 700 is considered good.
| Equifax score | Category | How did you get this score? |
| NH | No History | You do not have a credit history as you have not used a credit card or have never taken a loan |
| 300-549 | Poor | You have missed repayments or defaulted on credit card bills or EMIs, You will be considered a high risk, and will find it difficult to get a loan or a credit card. |
| 550-649 | Fair | You have some irregularities like late payments of bills/EMIs or multiple credit inquiries, Some lenders will consider approving your credit applications, but your interest rates might be higher |
| 650-749 | Good | You have been regular with your credit payments, and had responsible credit behaviour, Most lenders will consider your applications, but you may not get the best deals |
| 750-900 | Excellent | You have an exemplary credit history, with no defaulted on payments, utilization of credit, etc, You will be considered a low risk of turning into a defaulter, and banks and lending institutions will offer you better deals on loans and credit |
Why is it Important to have a Good Equifax Credit Score?
A credit score is one of the main factors used to determine a person’s creditworthiness, which is used by banks and lending institutions to help them make financial decisions about the individual.
Since the score is calculated by algorithms using a person’s credit history, loans, credit card payments, defaults and more, it reflects the possibility that they might default on loans and credit. In general, lenders prefer borrowers who have higher scores (and thus a long history of timely repayment and sound financial decisions).
So, those with a better score can get better interest rates, which puts them in a position to bargain for better loan agreements, and more. To ensure that one needs to know the factors that can impact their score, and make an effort to maintain a good credit score.
How is a Person’s Equifax Credit Score Calculated?
A person’s Equifax score is calculated using a few major factors, such as:
| Factors | What affects these factors |
|---|---|
| Payment history | The timely payments of credit card bills, loans, and EMIs, When payments are delayed or defaulted, it will lower your credit score. |
| Length of credit history | How long you have had a credit account, Older accounts and cards can reassure lenders that you have consistently been paying your bills on time. |
| Credit utilization | The amount of your credit limit that you use, Ideally one should spend no more than 30% of their credit limit; if it is higher than this, it can bring your score down. |
| Credit mix | Refers to the types of credit you have; there are two types: unsecured loans (like credit cards and personal loans) and secured loans (such as auto loans or home loans), It is recommended to have a mix of both. |
| New credit enquiries | The number of times you have applied for credit cards, loans, etc, A higher number of enquiries can bring your score down. |
How to Check your Equifax Credit Score?
Currently, to get their Equifax credit score and report directly from the company, one needs to fill in a form and send in via courier, post, or email.
As mandated by the RBI, all users are entitled to one full free credit report per calendar year. For requesting credit reports more than once in a calendar year, you will be asked to pay a small fee.
You can follow steps as mentioned below:
- Step 1: Fill the Credit Report Request Form on the Equifax website.
- Step 2: Attach/Enclose a self-attested copy of your identity proof (such as voters ID, driving license, passport copy, or PAN card) and address proof (electricity bill, phone bill, bank statement, driving license, ration card, or rent agreement)
- Step 3: If you are getting a paid credit report, then enclose a demand draft in favor of “Equifax Credit Information Services Pvt. Ltd.”. This should be for ₹138 (for just a credit report) ₹472 (for both credit report and credit score).
- Step 4: Send the above documents through a courier, post, or email.
- If sending by email, send the scanned documents to ecissupport@equifax.com
- If sending by post, send the documents to:
Customer Service Team - Equifax Credit Information Services Ltd, 931, 3rd Floor, Building 9, Solitaire Corporate Park, Andheri Ghatkopar Link Road, Opposite Mirador Hotel
Andheri East, Mumbai – 400 093
You can also access your Equifax credit score via online third party platforms, such as the CreditMantri app, CreditSmart, or ETMoney.
Frequently Asked Questions
What factors about a person will affect their Equifax credit score?
We have already looked at the main factors that are used to calculate a person’s Equifax score. However, there are some other variables that are taken into account, such as:
- Credit repayment history
- Credit usage
- Number of credit cards you hold
- Number of secured and unsecured loans you have
- Demographic variables
- Your income
What are the differences between Equifax and CIBIL credit scores?
Equifax and CIBIL are both credit bureaus, or credit information companies. They are two of the four companies licensed in India by the RBI. Both offer credit scores and credit reports to users.
the differences between them are:
- While both offer one free credit report each year, additional CIBIL reports cost ₹550, while an additional CRIF High Mark credit report costs ₹138 (a credit report and a credit score will cost ₹472).
- You can get CIBIL reports numerous times a year, but Equifax only gives you the option to get their credit report 4 times a year.
- You can make payments to CIBIL net banking, credit or debit card but Equifax only accepts demand drafts.
What are the other services provided by Equifax?
Here is a list of products and services offered by Equifax:
Consumer credit bureau: This provides credit information reports and credit scores using specific algorithms and analytics. It also offers consumers a portfolio review where they use predictive insight to help cut losses and generate revenue.
Microfinance bureau: Equifax’s microfinance exchange is a collaboration with Microfinance Institutions Network (MFIN), and it provides Microfinance Credit Information reports, Microfinance Scores, and Microfinance Portfolio Reviews
Multi Bureau Solutions: This offers a single point of inquiry for data consolidated from various credit bureaus.
Value-Added Services: Equifax offers a number of value-added services for customers, such as credit fraud and risk management strategies, portfolio management, collection products and solutions, industry diagnostics, and more.
Who all can access your Equifax credit score and credit report?
Registered and authorized Equifax members, who include banks and also financial institutions, as well as others who meet the requirements of the Credit Information Companies Act, can get your credit history.