Equifax Credit Score & Download Free Credit Report

Equifax Credit Score & Credit Report: Get it for Free

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Credit score is a number that ranges between 300 and 900, which gives you a analysis of your credit history. This 3-digit number defines how timely you payback borrowed money from banks and lenders. A good credit score lies between 750 to 900. The closer your credit score is to 900, the better chances you have of getting quicker approvals on credit cards and loans. Every Credit scoring agency has its own method and criterion to measure your credit score and to curate a unique credit report for you. This report can be termed ‘unique’ because it has been prepared after looking at your spending habits, the length of your credit history, credit utilization ratio and the credit mix in your portfolio. You can easily avail a free credit score at Credit Karo.

Equifax Credit Score

Equifax Inc. is an American multinational consumer credit reporting agency and is one of the three largest consumer credit reporting agencies, along with Experian and Trans Union. This Equifax collects and aggregates information on over 800 million individual consumers and more than 88 million businesses worldwide. So, just like every other credit rating agency, Equifax has its own way of giving weightage to each factor that affects your free credit score.

Equifax Credit Score Scaling

The Equifax Risk Score 3.1 is scaled as follows:

  • -Customers with more than 6 months vintage on bureau: 300 (high risk) to 900 (low risk)
  • -Customers with less than or equal to 6 months vintage on bureau: 1 (high risk) to 6 (low risk)
  • -Customers with no trades on bureau, only enquiries on bureau or only authorized trades on bureau: No score (-1)
The risk grading of ERS 3.1 is as follows:
Customers with Vintage > 6 months
ERS 3.1 Score Category Risk Description
300-647 Very High Risk
648-674 High Risk
675-726 Average Risk
727-783 Low Risk
784-900 Very Low Risk
Customers with vintage < = 6 months
ERS 3.1 Score Category Risk Description
1 Very High Risk
2 High Risk
3 Average Risk – 1
4 Average Risk – 2
5 Low Risk – 1
6 Low Risk – 2

BENEFITS OF HAVING A GOOD CREDIT SCORE

Better chances of getting approval for loan or credit cards –

In case you have a low credit score; you will shy away from applying for a new credit card or a new loan. Banks consider your credit score as an important factor while going through your credit card or loan application.  

Get approval on loan and credit cards for higher limits –

Also Read IS Credit Score Necessary for Personal Loan?

If you have an excellent credit score, your credibility on papers will increase automatically, thus, banks and lenders would be more than happy to lend you a higher loan amount. You have a clean history in your credit report card which means you have the capability and intentions of paying back your loan on time .

Lower interest rates –

If you have a good credit history, you will be offered the best rate of interestavailable in the financial market on your credit card and sanctioned loans. Any financial charges levied will also be lower which will obviously help you to pay off your loan faster.

More negotiating power-

If you hold a good credit report, you also get the scope of negotiating with banks and financial institutions on interest rates while applying for a loan or a new credit card. Banks can agree to your bargain on interest rates because they are assured that you are a suitable customer for them.

Get pre- approvals on Loans –

You can pre-approvals on loans from lending institutions as an excellent credit reportsignifies that you are good with repayments and will return the amount to your lender on time.

Higher credit card limit –

Banks and Lenders are more than happy to offer you a higher credit limit when you have an excellent credit score, so while you are building a good credit report you are also working towards the increase in your credit limit on any existing credit cards or even new ones.

Discounts on processing fee and miscellaneous charges-

You can get good discounts on miscellaneous charges and processing fees on loans.

Extended tenure –

If you have a good credit score, banks and lending institutions are willing to offer a longer tenure on loan repayments.

HOW TO APPLY

Conclusion

Your credit report speaks volumes about the type of borrower you are. Banks and Financial institutions look for borrowers who have a really good past record when it comes to repayment capacity and spending habits. So, if you are a potential borrower, these factors are what you need to keep in mind.

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