When you are seeking a loan of any kind, your borrowing history and repayment records become vital information for the lender. This is where the Equifax credit report comes in handy. It tells the lender what kind of a borrower you are and whether or not you are eligible for the loan. So get your Equifax credit score right to get that loan you want!
The Equifax credit score is a three-digit number that represents your responsibility as a borrower. The credit score ranges from 300 to 900. It depends on your credit history. Your past borrowed amounts, the way you repaid them, your responsibility as a borrower are all taken into account when your credit score is calculated.
Equifax Is a reputed American multinational credit reporting agency that is renowned for giving unbiased credit scores to individuals across the globe.
With a decent credit history, your credit score will be on the higher side. It will be extremely beneficial for you in the future.
A credit score that comes out to be around 800 or 900 is considered to be the most competent credit score while applying for loans and credit cards.
When you apply for a loan, your lender examines your Equifax credit report, i.e. credit score, to analyse your competence as a responsible borrower. They check whether you made all your repayments efficiently in the past, your open credit account details, the duration of your past loans, and some other personal details.
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Equifax is one of the three major credit reporting agencies in the India, along with Experian and TransUnion. Founded in 1899, it collects and aggregates information on over 800 million individual consumers and more than 88 million businesses worldwide. Its primary purpose is to record and report credit histories, which lenders use to make decisions about granting credit and setting interest rates.
A credit score can be explained as a three-digit number that indicates a person's creditworthiness. It determines whether or not you will be able to pay your credit bills after taking a loan. Equifax credit score will range from 300 to 900. If you have a credit score closer to 900, chances are your loan requests will be approved sooner than those who have lower credit scores.
Equifax credit report is calculated using several metrics and factors. The amounts you borrowed in the past, whether you made your repayments on time or not, your personal details, the duration of your past loans are taken into consideration in this procedure.
Although the credit report does not tell you directly whether or not you are eligible to apply for loans and credit cards, it makes it obvious through the credit score. Your lender will understand by looking at your credit score if you are a responsible borrower that they can trust.
If your credit score remains around 750, it is still considered to be a decent score. However, if it is less than 600, work on improving your credit score before you apply for loans and credit cards from lenders. Pay your monthly bills, EMIs, and debts on time and make sure you never make late payments. These are the major factors that affect your credit score immensely.
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To check your Equifax credit score for free, follow these steps:
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Your payment history, personal details, number of credit accounts, length of credit history, and other details are examined for preparing your Equifax credit report.
Whether or not you made late payments has an immense impact on your credit score. Even one single late payment can affect your credit score.
Several factors and metrics are involved in the procedure. This score determines your eligibility to apply for loans and credit cards.
However, you have to remember that you do not have a single credit score. Credit scores can vary for several reasons. One individual, therefore, can have multiple credit scores. For instance, you are buying a car. Your payment history will be more emphasised in that case.
The company that provides you with the credit score has a big role. The method of calculating your score varies from one company to another. This is one of the reasons why your credit scores may vary from time to time. Usually, it is a paid service that you can opt for by visiting the official page of Equifax online. They charge 138/- for giving credit reports to the customers. If you get a full customised loan plan prepared by them, you will have to pay around 400/- for the entire deal. However, to get a free Equifax credit score, you can make a 'My Equifax' account online without any hassle.
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Some of the most important features of Equifax credit report are:
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Range of Equifax Credit Score and Its Significance in India:
This range is considered as having poor creditworthiness. Individuals falling in this category might face difficulties in getting credit approval from mainstream lenders. If approved, they are likely to be charged much higher interest rates due to the perceived risk of default.
Scores in this bracket are seen as below average. While obtaining credit may be possible, terms are less favorable. Individuals in this range may face higher interest rates and may be required to provide additional documentation or collateral.
Falling in the 'good' category means that the individual has a relatively healthy credit history, though there might be a few negative factors. Lenders view these individuals as moderate-risk borrowers. They are likely to get credit approval at competitive rates.
This score range reflects strong creditworthiness, with a history of consistent repayments and responsible credit management. Individuals in this bracket get favorable terms, including lower interest rates and higher credit limits.
This is the optimal range and showcases exemplary credit behavior. Individuals with scores in this bracket are viewed as the least risky by lenders. They can enjoy the best possible interest rates, quick approvals, and other benefits such as premium credit card offers.
Whenever you take out a loan or use credit, the lending institution reports your financial behavior to credit bureaus. These bureaus generate a comprehensive credit report that outlines your credit management. This report not only encapsulates your past and present borrowing activities and repayment habits but also includes a consolidated summary of all your credit cards, loans, and their corresponding histories. It further encompasses personal identification details sourced from various financial entities you've interacted with.
Using the data from this report, credit bureaus like Equifax then compute a credit score. This score, a three-digit figure, is a distilled representation of your entire credit history and trustworthiness. It's influenced by factors such as your past credit behavior, the amount of debt you currently hold, the duration of your credit history, the diversity of your credit sources, and recent attempts to obtain new credit. Various credit information agencies have unique scoring models, but generally, scores range between 300 and 900. A score closer to 900 is optimal, indicating excellent creditworthiness.
CIBIL company and Equifax India are both credit information bureaus that provide individuals with credit reports.
Here are the major differences between these two companies:
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Dial 1800 209 3247 in order to reach Equifax's customer care services. It is a bot-controlled system that will fulfil your requirements.
If you want to talk to a real person to discuss your enquiries, dial 1866 640 2273
You can also reach out to them via email. Drop a mail at email@example.com to reach their customer services.
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An Equifax Credit Report is a comprehensive document provided by Equifax, one of the major credit information companies operating in several countries, including India. This report serves as a reflection of an individual's financial history and creditworthiness. It consolidates data from various lenders, banks, and financial institutions to provide a snapshot of an individual's credit behavior over a period of time. Key elements of the report include personal identification details, credit accounts (like loans and credit cards) with their status, payment history, loan inquiries made by potential lenders, and any defaults or delinquencies. Additionally, the report may contain information on settled accounts, high credit limits, and outstanding balances.
As per RBI guidelines, every individual is entitled to one free credit report in a year from each CIC, including Equifax. To get your free Equifax credit report, you can visit the official Equifax India website and follow their process for obtaining a free annual credit report.
Information Required To Generate Equifax Credit Report
To obtain your Equifax credit report in India, you'd typically need:
When you apply for a credit score and submit all the necessary documents offline, it will take around 7 to 10 days for the credit reports to reach you. It can get postponed if you do not submit the documents properly.
It will cost around 138/- to get your Equifax credit score.
If you want to get a customised to learn plan along with it, it will cost you 400/- to get the entire package.
These are three credit reporting agencies that operate in different ways. The amount of details shown in your credit score also differs from one agency to the other. Experian and Equifax will only take your employer's name. On the other hand. TransUnion CIBIL requires more details in order to calculate your credit report.
Visit their official website online and provide them with all the necessary information required for the procedure. Once you submit these details offline, wait for 7-10 days to get the results.
You will receive a detailed report of your current credit score. You can also get customised loan plans. You will be charged more for this service.
Go to your My Equifax account to edit any of your personal details.
If you find an error in your credit score, reach out to their customer care at 18002093247.
If you find inaccurate information in your Equifax credit report, let them know that as soon as possible. It will take around 30 days for them to update the information. If it does not get updated, reach out to their customer care for further assistance.
You can obtain your Equifax credit score free once a year by visiting the official Equifax website and following their specified process.
To maintain a good Equifax credit score, ensure timely repayments of loans and credit card bills, keep a low credit utilization ratio, avoid multiple loan inquiries in a short time, and regularly check your Equifax credit report for discrepancies.
As per RBI, Equifax is eligible to offer one free credit report in an year. However, for more than one credit report, you need to pay Rs. 400 (excluding GST) per month.