written by | May 6, 2022

What is Equifax Credit Score and Credit Report?

Consider a moment when you yearned for your favourite motorcycle but were strapped for cash regularly. To make things easy, you did apply for a two-wheeler loan. This frequently necessitates conducting research, deciding on a lender, obtaining appropriate paperwork and applying for a loan. What you had to do now was wait for the funds to arrive. You, on the other hand, are in for an unpleasant surprise. The bank turns down your loan application due to a bad credit score.

This may occur with any of us. Many people are unaware of the significance of their credit score until a bank denies a loan or credit card request. Banks and NBFCs may refuse to accept your loan or even another credit request if you have a poor credit score.

So, before asking for any type of credit, it's a good idea to verify your credit score and credit report and, if necessary, enhance your score. We'll go over everything you need to understand regarding your Equifax credit score and the steps you'll need to take to improve your credit condition.

Did you know?

Equifax, the credit information company, admitted in September 2017 that it had been breached, exposing the sensitive data of 142.9 million Americans.

Also Read: Equifax Vs CIBIL Vs Experian Vs Highmark

What are the Equifax Credit Score Ranges?

What Do You Mean by an Equifax Score, and How Do You Get One?

Let's start by learning the fundamentals of an Equifax score. An Equifax credit score is a three-digit figure ranging from 300 to 900 that provides a full description of your credit condition to prospective lenders. A better credit score also referred to as a credit rating, indicates strong credit health and increases your chances of getting a loan or credit card. Simply put, your credit rating impacts your capacity to obtain new credit from the banking sector.

How Equifax Calculates Credit Scores?

Like all other credit reporting firms, Equifax has its specific formula to construct credit scores. Let's take a look at some of the important criteria that go into determining a credit score:

Credit Payback Record

Your credit repayment history heavily influences your credit score. Having a demonstrated track history of paying credit card bills and loan EMIs on time demonstrates trustworthy credit conduct and can help you improve your credit score.

Credit Utilisation Ratio

This is the proportion of credit used to credit available throughout all credit card, credit and bank accounts. A high credit usage ratio (90-100%) or a habit of often maxing out credit cards suggests a greater reliance on credit and repayment load, which may affect your credit score. A low credit utilisation ratio of 30% or less, on the other hand, suggests greater trustworthiness, and it may help you raise your credit score.

Type of Credit Used

The type of credit you utilise (secured or unsecured) impacts your credit rating. It's beneficial to have a balanced credit mix, which includes unsecured and secured credit. When creditors realise that you have managed numerous credit flawlessly in the past, they acquire trust. It improves your likelihood of acquiring a credit card or a loan.

The amount of new credit requests is as follows. Your credit rating may be defined by the number of new credit accounts you have registered for lately. Requesting many new credit cards or loans demonstrates that you are credit thirsty, which can negatively impact your credit score.

Credit History Duration

Your credit score is influenced by the duration of your credit record or the time that credit accounts have indeed been open. Your credit rating is influenced favourably by a lengthy history of prudent credit conduct.

What are the Benefits of Checking Your Credit Reports Regularly?

Regularly reviewing your credit reports will assist you in better understanding your current credit situation. It helps you be more conscious of your future financial needs, and it also assures that all of the data in your analysis is correct and current.

Your credit report may contain inaccurate information, lowering your credit rating. It is always best to grab your yearly credit rating from Equifax and examine it to prevent such unneeded causes.

Because of technological advancements, criminal conduct on your credit card might occur. Tracking your credit history will assist you in keeping track of all of your transactions. Contact the Credit Bureau if you uncover any document that does not relate to you.

Why is it Necessary to Have a Good Equifax Credit Report?

A credit rating is one of the key indicators banks and financial organisations use to establish a user's trustworthiness, and it assists them to make monetary decisions regarding that person.

Because the score is based on a person's credit record, credit, card payments, defaults and other factors, it shows the likelihood of them defaulting on credit and loans. Banks prefer customers with higher credit ratings in general.

As a result, those with a higher credit score can earn lower interest rates, putting themselves in a better position to negotiate better loan terms and other benefits. To do so, one must be aware of the elements that can affect one's credit rating and attempt to keep a decent credit rating.

Also Read: Learn about Credit Score and Loan Basics

CIBIL Credit Score vs Equifax Credit Score

Credit Reporting Bureaus Equifax India and CIBIL are two among them. Clients can obtain credit scores and credit ratings from both credit reporting bureaus.

Equifax India provides major contributing reports that include details about a customer's present and previous credit history. CIBIL also provides credit reports that detail the customer's credit history, including how much credit they've used, how they've returned it and whether they've missed or defaulted on any bills.

Parameters

Equifax

TransUnion CIBIL

Year of Establishment

2010

2000

Range of Credit Score

300-900

300-900

Cost per Subscription 

Monthly: ₹250

Quarterly: ₹450

Yearly: ₹900

Monthly: ₹550

Half-yearly: ₹800

Yearly: ₹1,200

Timespan for Report Release

Equifax Mobile App: Post 1 day via email

Offline: 7-10 days post verification

Online: Immediate Access

Offline: 7 days for verification; once done, you will receive the credentials for access to the myCIBIL post.

Consumer and Member Offerings

For Consumers:

  • Credit Information Report
  • Dispute Resolution
  • Credit Score

For Members:

  • Equifax Risk Score
  • Equifax Alerts
  • Credit Portfolio Review

For Consumers:

  • Credit Information Report
  • Dispute Resolution
  • Credit Score

For Members:

  • Consultation
  • Analytics Review
  • Portfolio Management
  • Customer Acquisition

Dispute Resolution

The Equifax website carries the Dispute Resolution Form that must be filled and attached with the required documents. The same must be sent to the bureau’s address via a courier service.  

Equifax Credit Information Services

Unit 932, 3rd Floor, Building No 9, Solitaire Corporate Park, Andheri Ghatkopar Link Road, Andheri East, Mumbai, Maharashtra 400 093

The CIBIL dispute Resolution allows consumers to raise a dispute by logging into ‘myCIBIL’ via the official CIBIL website. Enter all the relevant details and submit.

CIBIL also allows offline dispute filling where you can write to:

TransUnion CIBIL Limited

One World Center, 19th Floor, Tower 2A and 2B, 841, Jupiter Textile Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra 400 013

  • CIBIL is India's first credit bureau, whereas Equifax is the country's second.
  • The cost of obtaining a credit history from Equifax is ₹138, and getting a credit score and a credit information report would set you back ₹400. CIBIL, on the other hand, charges ₹500 for a single credit report that includes your credit score.
  • CIBIL accepts online banking and cards payments, whereas Equifax only takes DDs.
  • To obtain a CIBIL score, visit the CIBIL webpage and fill out the application form online. You will be prompted with 3 to 5 inquiries about your loans to verify your activity. You will get your credit rating immediately after identification, and the information will be forwarded to you. If the verification fails, you will be required to send a printed copy of the form and records showing your identity and address. You will receive a printed version of the CIBIL rating when verified.
  • To obtain your Equifax record, you must fill out the KYC application form and self-attest your identification and residence evidence. You can use your electoral ID card, passport, PAN card, driver's licence or Aadhar card to prove your identification. You can use an internet bill, an energy bill, a gas bill, a credit or debit card statement, proof of income or a rental agreement to prove your residence. You must mail the paperwork to Equifax, including a DD, and you will obtain your credit history and credit rating by postal within seven business days.
  • If you discover a mismatch in your credit report from CIBIL or Equifax, you must tell them and have the issue addressed. They will settle the disagreement in 30 working days at the most.
  • CIBIL provides a comprehensive credit report. Equifax gives a full report and a visual representation of the credit history that is easier to comprehend.
  • When opposed to Equifax, CIBIL has a broader network of users and associated banking institutions.

To fully comprehend your credit situation, you must consult your CIBIL and Equifax credit reports. Lenders no longer rely solely on one report; instead, they use a variety of studies to assess a person's reliability before making a decision.

How do I Keep My Equifax Score High?

Organise Your Payments

Return activity is one of the most important elements that affect your credit rating, so it's critical to pay all of your payments and instalments on time.

Pay the Whole Amount Due

We recommend that you pay the full amount owing on your credit card rather than the minimum balance. This lowers your credit rating and portrays you as a credit seeker.

Old Accounts Should Not be Closed

Your credit history is shortened when you eliminate old credit accounts, and your credit score will suffer due to this. Another important element that affects your credit score is the duration of your credit.

Avoid Making Many Credit Inquiries

Making multiple credit inquiries will result in harsh checks. To establish your trustworthiness, the bank will do a hard review. Nevertheless, each hard check lowers your credit score.

Monitor Your Credit Report

It's a good habit to check your credit report regularly because a mistake on your credit report might lower your credit score. If you find any errors in your credit history, you must appeal them as soon as possible.

Conclusion

Always settle off your credit card in full, rather than just the required threshold. Paying only the minimum balance demonstrates that you have a credit problem. Always make your payments on time. Managing your loan instalments and credit card bills on time demonstrates your responsibility. This also aids in the development of a solid score. Delete your old accounts instead of opening new ones because closing accounts reduces your credit history. This lowers your grade. Only inquire about your credit when it is necessary. Banks run a hard check on the credit report when you request credit, temporarily hurting your score. If you make too many credit queries, your credit score will suffer.
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FAQs

Q: What do you mean by a credit report from Equifax?

Ans:

A credit report from Equifax describes a person's credit history, including repayment patterns. It provides information about a person's credit payment history across numerous lenders and agencies over an amount of time.

Q: What do you mean by an Equifax credit rating, and how can you get one?

Ans:

A credit rating from Equifax is a quantitative indication of a person's trustworthiness, and it's a three-digit figure between 300 and 900. The Equifax credit agency calculates the score using data provided by the banking entities.

Q: Is the data on my Equifax credit score changed monthly?

Ans:

Participants, such as banks and other financial institutions, typically transmit financial info to the credit agency once a month. The Equifax credit score will be revised as quickly as data information is updated.

Q: What is the price of an Equifax report?

Ans:

Equifax will provide you with one free credit report in a given fiscal year. You will have to spend ₹400 if you want more than a single credit history (excluding GST), including your credit score in this credit report.

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