What is Equifax Credit Score?

Whenever you apply for a loan, the lender checks your credit score. There are many credit information bureaus in India to which lenders might refer for the same.

Are you interested in knowing what your Equifax score is? If yes, read ahead.

What is Equifax Score?

Banks, NBFCs, or other lenders check your credit score and credit report before approving a loan. The credit score is a 3-digit number that tells about your creditworthiness. It ranges from 300-900 and a higher score is considered better.

Equifax is one of the top four credit information bureaus that operate in India. It has been active in the country since 2010 and is recognized by the Reserve Bank of India and the Securities and Exchange Board of India.

The score generated by Equifax is known as the Equifax score.

Equifax Meaning and Uses

Credit information bureaus collect information about repayment patterns and credit behavior of customers and collate it into a credit report. Lenders can refer to these credit scores and reports, which help them understand the risk involved in approving credit.

Just like other credit information bureaus, Equifax has its own algorithm to generate credit scores.

Here are a few of the uses of the Equifax credit score -

Helps banks understand your repayment behavior and the risk involved in lending you money
Aids banks in deciding the loan amount and the rate of interest
Helps you know your credit score, so you can know your credit health

Benefits of a Good Equifax Score

The benefits of a good Equifax credit score are manifold. Here are a few of them -

Proves that you as a trustworthy borrower for the lender
Helps you negotiate a low interest rate
Easier approval of loans
Aids in getting higher loan amounts
Helps in negotiating longer repayment terms

Different Equifax Score Ranges

Credit score ranges reflect the creditworthiness of individuals. Below is a table illustrating the different Equifax credit score ranges:

Equifax Score Range	Category	Significance
800 to 900	Excellent	Low-risk borrowers. It will be easy for you to secure a loan with this score range.
740 to 799	Very Good	History of positive credit behavior. You have a high chance of credit approval.
670 to 739	Good	Acceptable or low-risk borrowers. You can receive competitive interest rates and a range of loan options.
580 to 669	Fair	Subprime borrowers. Some lenders might approve credit, but the terms may not be favorable.
300 to 579	Poor	High-risk borrowers. You will likely face difficulties in securing a new credit in this range.

Information Required to Check Equifax Credit Score

You can easily check your Equifax credit score online for free. When you check your own credit score, it is known as a soft pull, and it doesn’t impact your score. It can be done as many times as you want.

The following is the information that you require to fetch your Equifax credit score online -

Full name
Email ID
Mobile number
Date of birth
PAN / Driver’s license / Passport / Voter’s ID
Full address including PIN code

You can check your score once for free, but if you want updated reports, you will need to pay a subscription fee of Rs.250.

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Conclusion

A good credit score can be of great help when you are applying for a credit product. But if you have a low Equifax credit score, you can still work on improving it.

Here are some tips you can follow to improve your credit score -

Pay your EMI and credit card bills in full every month
Try not to settle your loans
Close old loan accounts that might have been settled or left unclosed
Maintain a credit utilization ratio of under 30%
Build a good credit mix of secured and unsecured loans, as well as credit cards
Don’t take too many loans or make too many credit inquiries
Plan your loans in advance so that they don’t become a burden later

Be patient when trying to build your credit score, as it takes time. In case you are new to credit and are looking to take a loan, you can get loans even with a low credit scores from Moneyview. To know more, visit the Moneyview website or download the Moneyview app.

What is Equifax Credit Score - Related FAQs

What is a good Equifax score?

An Equifax score of 700-750 or more is considered good for most credit products. However, the ideal credit score depends on your other eligibility criteria and the type of loan you have applied for.

Is Equifax an accurate credit score?

Yes, Equifax is recognized by RBI and SEBI and is an accurate credit score to refer to.

Which credit score is used by banks?

The top four credit scores used in India are CIBIL, Experian, CRIF High Mark, and Equifax. Banks may use any one or more of these before approving your loan. Mostly, the CIBIL and Experian scores are used by banks in India.

Why is my Equifax score lower than CIBIL?

All credit bureaus get information from banks and other lenders about the repayment behavior of borrowers. Based on their own algorithms, they generate separate credit scores. Each credit bureau gives weightage to different parameters, which is why your Equifax and CIBIL scores might slightly vary.

Which CIBIL score is accepted by bank?

Generally, a CIBIL score of 700-750 or above is accepted by most banks. But again, they may accept lower scores if you are opting for a secured loan or have an ongoing relationship with the bank.