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 is Equifax score? If yes, read ahead.
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.
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 helps 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 -
The benefits of a good Equifax credit score are manifold. Here are a few of them -
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 -
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.
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 -
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 low credit scores from moneyview. To know more, visit the moneyview website or download moneyview app.
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.
Yes, Equifax is recognized by RBI and SEBI and is an accurate credit score to refer to.
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.
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.
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.
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