One of India’s four credit information companies is Equifax. It gathers and preserves information on borrowers’ credit histories. Both borrowers and lenders have access to Equifax’s credit files and credit scores. The Equifax score is available for borrowers to obtain, analyse, and manage so that they are in a strong position when applying for a loan or credit card. To assess an applicant’s creditworthiness, lenders might ask the credit bureau for their Equifax score. Read on to learn more about the credit score and credit report from Equifax.
Features of the Equifax credit report
- Lenders use it to determine the risk associated with providing money to a potential borrower, or their creditworthiness.
- Knowing your own score might help you evaluate and keep track of the state of your own credit.
- Your credit report contains information on your credit history’s length, credit usage ratio, number of accounts, new credit accounts opened, and payback history.
How can I get my free Equifax credit report?
The process to get a free Equifax report:
- Login to your account: After installing the Equifax app to your smartphone, you must enter your email address to request a temporary pin. You can do this on either an Android or an iPhone. To generate a 6-digit equifax login, you must first log into the app using your email address and the temporary pin.
- Authenticate yourself/KYC: To prove your identification, you must supply all of your personal information and your Aadhaar number. You will receive a one-time password on your Aadhaar registered mobile number if your authentication is completed. Enter the Equifax App after receiving the one-time password.
- Credit report: When requesting your credit report, be sure to include your address, gender, and birthdate. Additionally, you will have to provide identification (ID), such as a passport, PAN, or voter ID. After successfully completing the first step, you must wait 24 hours before logging in to the Equifax App to verify your identity. You must respond to an account-based questionnaire and the authentication will be based on your credit history.
To prove your identity, you will have four chances to respond to three questions based on your credit history. After your identification has been properly verified, your credit report will be sent to the email address you have on file. Your credit report will be password-protected. Your report will receive a special password from Equifax that will be emailed to the mobile app on your phone. In order to receive the password and see your Equifax credit report, you must first do equifax log in to the app.
Calculation of credit score by Equifax
- Utilised credit type: Your credit score is influenced by the kind of credit you use (secured or unsecured). A healthy credit mix, or a balance of secured and unsecured credit, is beneficial. Lenders become more confident when they learn that you have previously handled numerous forms of credit flawlessly. It raises your likelihood of receiving a loan or credit card in the future.
- New credit applications received: Your credit score may also be impacted by how many recent credit applications you made. Multiple new credit card or loan applications indicate that you are credit-hungry, which could lower your credit score.
- Payback history: Your credit score is significantly impacted by your credit repayment history. Having a track record of paying credit card bills and loan EMIs on time demonstrates responsible credit behaviour and raises your credit score.
- Ratio of credit utilisation: It is the proportion between the total amount of credit used and the total credit limit across all loans, credit card, and overdraft accounts. A high credit usage ratio (between 90 and 100 percent) or regularly using all available credit on a card denotes a greater reliance on credit and an increased burden of repayment. Your credit score could be affected by this. A low credit utilisation percentage—30% or less—indicates greater creditworthiness and could raise your credit score.
- Duration of credit history: Your credit score is also impacted by the length of your credit history or the time that credit accounts have been open. Your credit score tends to be favourably impacted by a long history of responsible credit behaviour.
Ways to maintain a good Equifax score
- Fix your payment schedule: Your repayment behaviour has a significant impact on your credit score; therefore it’s critical to pay all of your bills and EMIs on time.
- Pay the whole amount owing: Paying only the minimum amount due on your credit card is not encouraged. Your credit score suffers as a result, and you come out as credit-hungry.
- Avoid closing out-of-date accounts: Don’t close accounts because doing so may shorten your credit history. Your credit history is yet another important component of your credit score.
