A credit score is like seeing your financial report card. You can take out a loan to buy that dream car you have always wanted based on how well you perform. If you perform consistently well, your chances of taking that loan will be higher.
Equifax gives you that authentic report card. It takes information from its members and provides Credit Information Reports to determine the credit behaviour of customers, their creditworthiness and the repayment capacity of borrowers.
To lenders, it gives them consolidated credit behaviour across every loan account and presents data on cumulative creditworthiness. The borrowers can review their credit reports.
What is an Equifax score?
Equifax collects credit history, which includes repayment of personal loans, mortgages and credit card debts from bureau members such as banks and financial organisations to prepare credit score reports. The bureau then uses sophisticated mathematical algorithms to calculate an individual’s credit score.
The credit score may differ from one credit rating agency to another. Lenders typically have different score cutoffs depending on which bureau is providing the credit score. An Equifax credit score, like a credit rating, impacts the ability to borrow fresh credit. It is a 3-digit number ranging between 300-900 that gives potential lenders a complete picture of credit health. A higher score of 800-900 indicates good credit health, while a score of 300-579 is considered poor.
Equifax: How to maintain your credit score?
Building and maintaining a good credit score shows your creditworthiness, and it is necessary because it makes approving a credit card or a loan easier. Maintaining or improving your credit score can be done by:
- Paying credit card bills and loan repayments on time and never missing the due date of any of the loan EMIs. Missing any payment, no matter how small and how often, can impact the credit score. So, setting up an auto-debit or standing instructions to debit the account to pay monthly bills ensures that no payment is missed.
- Avoiding replacing the older credit card accounts with newer or better credit cards since it cuts short the credit history. Lenders always look for a long history that shows repayment behaviour and helps them establish that you are a trusted borrower.
- It is better to apply only for the credit that is needed. If you apply for multiple short-term credits, it implies credit hungriness and impacts your credit score. Applying to the lender where there is the best chance of qualifying for credit is better for the score, as every rejection can cause your credit score to drop further.
How to get your credit report?
A credit report includes personal information, account information as well as details of bankruptcies if any. A free credit report every 12 months can be found at www.annualcreditreport.com. Creating a myEquifax account gets you six free Equifax credit reports each year. From your myEquifax account, you can get a free monthly Equifax credit report and a free monthly VantageScore credit score (one type of credit score) based on Equifax data.
A credit report can be acquired within 15 days through phone by completing a verification process. You can also download the annual credit report request form and send it to their registered office.
Equifax: Products and services
Equifax offers numerous services as that are listed below:
Consumer credit bureau
Consumer credit bureau primarily gives a Credit Information Centre (CIR), which assesses the borrower’s creditworthiness. It gives a numerical score between 1 and 999 to give a holistic view of the borrower’s financial health. Equifax makes a faster, simpler and more comprehensive assessment using specific analysis of the database.
Such CIR includes an identification section which includes customer details, their credit summary, the details of old and new credit accounts, the repayment schedule of loans taken and the number of inquiries made on them.
Microfinance bureau
Equifax provides portfolio reviews as part of its microfinance bureau. Portfolio review includes benchmarking (comparison of several microfinance institutions in a specific area), early warning indicators (tracking receding sourcing trends) and entry strategy, i.e., exploring potential markets for their customers.
Multi bureau solutions
Equifax consolidates data from various credit bureaus and helps its customers by being a single inquiry point.
Verification services
Equifax also has an automated ID verification service. They verify Aadhar and PAN for their customers.
Value added services
Equifax also provides other services such as credit risk and fraud management solutions, product and pricing design, collection strategies with customer responses, portfolio management and analysis of macroeconomic trends.
FAQs
What are the 3 credit bureaus besides Equifax?
The three credit bureaus are TransUnion CIBIL, Experian and CRIF Highmark.
Who can access an Equifax credit report?
Equifax members, including leading banks and financial institutions, can access information from the credit bureau. In the case of individuals, only the individual can access his own credit report and usually, in the application form where he is applying for credit with a lender, he would have granted permission to the lender to pull out a credit report on him.
How can I contact Equifax for any query?
Customer support can be contacted from 8 a.m. to 8 p.m. (Monday to Friday: Eastern Time).
How much does it cost to get a credit score from Equifax?
In a financial year, you can avail of one free credit score from Equifax. For more than one credit report, the charges are Rs. 400 (excluding GST).
