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How to Get Free Equifax Credit Score Report?

How to Get Free Equifax Credit Score Report?

finance
July 25, 2022
5 min read
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How to Get Free Equifax Credit Score Report?
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Equifax is one of the credit bureaus of India that has the record of all the consumers and their repayment history. Based on their repayment history, a credit score is generated by Equifax that is generally used as a parameter by lenders and financial institutions in the nation to assess your creditworthiness. Learn how to generate Equifax credit score report for free in this article. 

The registered name of Equifax in India is Equifax Credit Information Services Private Limited (ECIS). It primarily offers credit information about consumers and businesses. The credit bureau compiles and organises the data they receive from various reliable sources into an accessible form, generates credit information reports, and calculates Equifax credit scores. The credit bureau also keeps track of all credit-related activities of people and businesses, including loan and credit card transactions. 

What is Equifax Credit Score?

All of a customer's credit related activities are collected and recorded by Equifax. Before extending credit to you, lenders, banks and financial institutions might use these records to assess your creditworthiness. They can use it to decide on interest rates, the size of the loan, the credit limit, etc. 

Equifax credit score is a three-digit number that ranges from 300 to 850. Higher your Equifax credit score is, more responsible you are as a borrower. If you have a low Equifax credit score, lenders may not agree to lend money to you or you may not get a loan or credit card on your desired terms. 

Here’s a snapshot of the Equifax credit score range: 

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Equifax Credit Score Range

Type/Meaning of Equifax Credit Score

800-850

Excellent

740-799

Very Good

670-739

Good

580-669

Fair

300-579

Poor

How is the Equifax Credit Score Calculated?

Every customer's credit activity, including payments on loans and credit cards, assigned vs used credit limit, the age and number of credit accounts they have, and the status of those accounts, is reported to Equifax by member banks and non-banking financial institutions (NBFCs). All these factors are taken into consideration and using their own scoring model, Equifax credit score is calculated. 

The credit score is then updated on the consumer’s credit report by Equifax. So, whenever a lender or financial institution assesses your Equifax credit report, they can see all your repayment history along with the credit score you have been assigned by Equifax. Basis the information gathered from your Equifax credit report, they make their decision on your loan or credit card application. 

How to Apply for Equifax Credit Score Report for Free?

As per the mandate by the Reserve Bank of India, every credit bureau has to provide a free credit report in a year to the consumers when demanded. However, there are other ways as well to get a free Equifax credit score report that are listed below: 

  1. To get a free copy of your Equifax credit score reports every 12 months visit www.annualcreditreport.com
  2. You can also get 6 (six) free Equifax credit reports each year to check your credit score by creating a myEquifax account.
  3. Alternatively, you may sign up for Equifax Core Credit using your myEquifax account credentials and get a free Equifax credit report.

How to Maintain a High Equifax Credit Score?

Your creditworthiness is determined by your credit score. It is the first thing lenders look at when you apply for a loan or a credit card. It helps them to determine whether you will be able to pay back the money you are asking to borrow. Hence, maintaining a high or good Equifax credit score is extremely essential for your credit health. 

Listed below are a ways to maintain a high or good Equifax credit score: 

  1. Never pay the minimum amount due on your credit card. Paying the minimum dues may not attract late fees, but it comes with an interest charge. Also, paying the minimum amount dues may reflect that you are not able to pay the entire amount you have spent using the credit card. 
  2. Pay all your credit card and loans on time and in a regular manner. It contributes towards building an Equifax credit score. If you forget the deadline for payments, set up automatic debits. This way your payment will be automatically debited from your account and you do not have to worry about missing a payment due date. 
  3. Keep your old accounts open because closing it will impact the length of your credit history. And this in turn will hurt your Equifax credit score. Having a seasoned repayment history helps in building your credit score as it shows you have been managing your finances responsibly since a long time. 
  4. Inquire about your Equifax credit score when it is necessary or periodically to check for mistakes on the Equifax credit score report. Lenders run a hard inquiry into your credit report whenever you request for a loan or credit card, which temporarily lowers your credit score. Opt for a soft credit check as it doesn’t impact your credit score. 

In general, an Equifax credit score of 750 or more is preferred by most of the lenders, banks and NBFCs. Despite having a solid repayment history, if you observe your Equifax credit score going down, it can be as a result of a mistake in your credit report. It is therefore advisable to review your Equifax credit report on a regular basis. 

FAQs Related to Free Equifax Credit Score Report

Does Equifax have a free account?

Yes. You can create a free account on myEquifax and access multiple Equifax credit reports every year for free. You do not have to pay anything to create an account on myEquifax. 

What is considered as good Equifax credit score?

If your Equifax credit score ranges from 670-739 is considered good. And an Equifax credit score of more than 739 is generally preferred by lenders. Also, having a good Equifax credit score helps you get better offers on credit card and loans that you apply for. 

Do lenders use Equifax credit report for deciding on loan applications?

Yes. Lenders may pull out your credit report generated by Equifax to decide on the loan application. It depends on the lenders – which credit bureau they choose to go ahead with. 

How much does it cost to get Equifax credit report?

You are entitled to get 1 free Equifax credit report every year. Apart from that, if you wish to access your Equifax credit score report, you will have to pay Rs. 400 plus tax.