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What is Equifax Score?

 

Overview of Equifax

Equifax Credit Information Services Private Limited (ECIS) is a Credit Information Company or credit bureau that has been licensed by the Reserve Bank of India, under the Credit Information Companies Regulation Act of 2005. They obtained their Certificate of Registration in March 2010. 

The company is the Indian subsidiary of Equifax Incorporated, a well-known consumer credit reporting agency which was founded in the US in the year 1899. It currently operates in 15 countries. The Indian arm ECIS is a joint venture (JV) between Equifax Incorporated and 7 different financial institutions from India: Kotak Mahindra Prime Ltd, State Bank of India, Religare Finvest Limited, Union Bank of India, Sundaram Finance Limited, Bank of India and Bank of Baroda. Headquartered in the financial capital of India, Mumbai, with branches in Bengaluru and Delhi, Equifax has close to 1300 registered members on board.

Equifax is in the business of collating information provided by all its registered members and converting it into a format that can be used for producing individual level credit information reports and credit scores, as per the guidelines laid out in the Credit Information Companies Regulation Act, 2005. It makes use of proprietary tools, customized to provide specific services to lending establishments, so they can make well-informed credit decisions.

Equifax credit score is a 3 digit number representing the crux of a person’s credit status. The higher this score is, the more creditworthy and financially stable the individual is perceived as.

Who all use Equifax score?

The credit information reports and credit scores generated by Equifax can be used by both the lending establishments as well as borrowers. The lenders, which are usually banking establishments, nonbanking financial companies and other financial institutions, use these credit scores and the detailed information provided in the credit reports to decide if they would like to approve specific loan/credit applications or not. They can even customize their loan/credit offers depending upon the creditworthiness of the individual.

Potential borrowers on the other hand use Equifax score to gauge their own financial health and creditworthiness, so they can improve their chances of availing loan facility or credit in the future.

Understanding Equifax Report

The Equifax credit report is created from the data supplied by the member banks and financial institutions to Equifax. This data compilation represents the entire spectrum of a person’s credit-related activities, including loan applications, credit card limits, re-payments, written off loans, settled loans, credit card history and any other type of credit-related activity. The report consists of the following sections:

Equifax Score – This is the Equifax credit score, calculated based on a person’s credit history. It ranges from 300 points to 900 points.

Personal Information – This section comprises of the individual’s name, gender, date of birth and other KYC details.

Contact Information – All the contact information and addresses go into this section. It can contain up to 4 addresses.

Employment Details – The annual and monthly income details of the individual, as supplied by the banking establishments and financial institutions, go into this section.

Account Information – All the details related to the credit facilities availed by the individual, current balances, monthly record of payments (up to last 3 years), loan types and loan account numbers constitute this section.

Enquiry Information – Anytime an individual applies for a credit card or a loan, the banking establishment or financial institution accesses his/her credit report. This section details all such activity in the form of enquiries.

How to get Equifax Report?

As mandated by the Reserve Bank of India, Equifax is required to offer one free-of-cost credit report and credit score details to every individual, in each calendar year. You can access your free Equifax report and credit score by visiting the official website of Equifax and clicking on ‘Credit Report Request Form’ under the ‘Forms’ tab on the menu at top (on home page). Thereafter, you will be taken to the ‘Credit Report Request Form’ page from where you’ll need to download this request form. You’ll be sent your credit report after you send the filled-up form along with self-attested documents (detailed in the form) to the provided email address.