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 is Equifax score? If yes, read ahead.

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 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 - 

• 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 own 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 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

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.

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 low credit scores from moneyview. To know more, visit the moneyview website or download moneyview app.