In the present finance market scenario, there are four Credit Information Bureaus operating in India today. Most of these credit rating bureaus are in a position to provide you with a Free Credit Report, and a Free Credit Score.
- TransUnion CIBIL or TransUnion Credit Information Bureau India Limited
- Equifax Credit Information Services Private Limited
- Experian Credit Information Company of India Private Limited
- CRIF Highmark Credit Information Services Private Limited
Equifax Credit Information Services Limited or just Equifax, a joint venture between Equifax Inc., USA, and seven other leading financial institutions in India, namely State Bank of India, Bank of India, Bank of Baroda, Kotak Mahindra Prime Limited, Sundaram Finance Limited, Religare Finvest Limited, and Union Bank of India, collects data and history about credit behaviour of borrowers in India.
Based on historical credit information and data, Equifax generates an Equifax Credit Report, and an Equifax Credit Score, so that lenders across India can determine an individual’s creditworthiness. The report and the score also empower the individual to maintain a good credit record and improve finances.
What’s an Equifax Credit Report?
A Credit Report generated by Equifax summarizes your handling of credit accounts based on the type of credit accounts you have, your payment history, and other financial information relayed to credit bureaus by your lending institutions. Your Equifax Credit Report summaries your unique financial history inclusive of accounts balances and limits, and opening and closing dates.
This helps potential lenders to decide whether you are worthy of credit. The terms and conditions of your credit approval also depend on this report. Remember to check your Equifax Credit Report regularly for accuracy, and completeness. This will enable you to keep a track of your finances and improve the chances of quick loan approvals.
What’s an Equifax Credit Score?
Equifax Credit Information Services Private Limited summarizes your credit history in a three-digit number called an Equifax Credit Score. This generated credit score marks your creditworthiness based on your credit history collected from various lenders. Equifax calculates your credit score based on the following.
- Repayment History
- Credit Utilization Ratio
- Type of Credit Utilized
- Number of New Applications
- Length of Credit History
Like other individual credit bureaus, Equifax too calculates your credit score based on information received in your Credit Report, which has to do with earlier credit performance, current debt levels, amount of time on the credit, and your pursuit of new credit. Expressed in terms of a three-digit numeric from 300 to 900, your credit score represents your credit history and rating. This tells a lender a lot about your financial capability and your repayment competence. Financial institutions link your credit score to the amount you borrow, the period for which you borrow, and the interest rate of borrowing as a part of the institutional due diligence process. The approval of your loan depends on your credit score.
Banks prefer individuals with low outstanding balances, long credit histories, and high credit scores. This puts a borrower in a better position to bargain for better terms and conditions including better interest rates. Hence, a good Equifax Credit Report, and a high Equifax Credit Score empowers you to negotiate better interest rates, and vice versa. Therefore, monitoring your credit profile with the help of Equifax Credit Report, allows you to make changes to your financial behaviour to enable good fiscal discipline for a better Equifax Credit Score.
Get your Free Credit Score and Free Credit Report
All credit bureaus in the country offer one free credit report in a financial year to consumers. Ruloans has made this process easier by allowing you access to your Free Credit Score, and Credit Report from Ruloans resources. Proceed as follow:
- To Check your credit score for free, click here
- Enter your Personal Details
- Complete your OTP Verification
- View your Credit Score
- View your Free Credit Report
- Download your Free Credit Report
Now that you’re aware of how to get your free Credit Score and Credit Report, click Are CIBIL Score and Credit Score the Same, for better understanding of the subject, and call Ruloans on 1800 2667576 for much more than money!