You must have heard a lot about credit scores and CIBIL scores, but have you ever heard of credit scores like Equifax and Crif Highmark? Your creditworthiness describes a lot about your credit management and utilization. For which, there are many different credit measurement ways. This comprehensive article will guide you through these scores in detail and tell you what advantages it offers.
What is an Equifax credit score?
Equifax Credit Score is a metric that measures a person’s creditworthiness. It is a three-digit number ranging from 300 to 900, and it is created using a proprietary algorithm by the credit information company (CIC). Let’s dig deeper into what importance an Equifax credit score holds.
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Also Read : Do You Know How A Low Income Affects Your Credit Score?
What is the importance of Equifax credit bureaus in India?
Equifax credit bureau is one of India’s four credit information bureaus. It has a lot of significance, as mentioned below:
● The Equifax credit bureau calculates the credit score using data provided by financial institutions. It gathers and keeps information on borrowers’ credit histories. In this regard, Equifax credit reports and credit ratings are available to both consumers and lenders.
● Borrowers can obtain their Equifax credit score to analyze and manage it to be in a favourable position when applying for a loan or credit card.
● Lenders can obtain an Equifax score from the credit bureau to assess an applicant’s creditworthiness.
How can you obtain a decent Equifax credit score?
Here’s what can help you maintain a well-built Equifax credit score:
● Duly Paying off the Bills: Paying all of your down payments and EMIs on time is one of the essential elements that affect your credit score in every way. This can lower your credit score and give the impression that you need credit. Hence, it is recommended that you pay off your credit card bill promptly and completely rather than just the minimum amount required.
● Avoid Settling old Accounts: Your credit history is shortened when old credit accounts are deleted. As a result, Your credit score will be harmed. Thus, it would help if you always kept a tab on your old accounts instead of deactivating them.
● Stop Making too Many Inquiries: Multiple credit queries should be avoided because the lenders will make hard checks. Because, to establish your creditworthiness, the bank will perform a hard check, and each hard check can lower your credit score. Therefore, it is suggested that you make minimum loan or credit concerned inquiries only when required.
Also Read : FICO score Vs. Credit score- What’s the Difference?
What is a Crif credit score?
A Crif credit score is a three-digit number starting from 300 up to 900 that reflects your repayment performance to the bank or lender whether you have been paying your bills on time or not. If your credit score is strong, the lender will know you have used loans or credit cards in the past and paid off all of your obligations on time, and this gives the lender the confidence to approve your current loan or credit card application.
You can check your Crif credit score with the help of a Crif credit report, which is a summary of a borrower’s credit history. This includes personal information (e.g., the borrower’s name, ID number, date of birth, etc.) and a credit summary (e.g., the borrower’s credit accounts, whether accounts are current or past due, and a record of recent credit inquiries made about the borrower).
It is important to understand Equifax and Crif’s credit scores in today’s digitally advanced era, and this will help you to solve future queries related to them. So to get the best experience possible while taking out a loan or managing your credit score, gaining more knowledge and practicing the right way of credit scoring is beneficial.
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People Also Ask:
1. What is considered a good Equifax score?
An Equifax credit score of 700 or above is considered a good score.
2. How is Equifax’s credit score different from Equifax’s credit report?
An Equifax credit score is a three-digit numeric figure that indicates your creditworthiness by your past repayment histories and credit ratings issued by the Equifax credit bureau of India.
An Equifax credit report describes a person’s credit history and repayment patterns based on a person’s credit payment history throughout time for various loans and institutions.
3. What is the importance of having a good Equifax credit score?
Having a good Equifax credit score can solve your financial problems in many ways, like immediate loan approval or best loans with a lower rate of interest and can also help with getting credit lines from credit unions with attractive offers.
4. How can I check my Equifax credit score for free?
To check your Equifax credit score for free, you need to follow these simple steps:
- Visit the Equifax website or download the app. And fill in the credit score request form.
- Complete the necessary KYC registration.
- Wait for at least 24 hours for the above steps to process, and then you will be directed to the page where your score will be generated.
5. What factors can affect my Crif Highmark credit score?
There are mainly five factors that can affect your Crif Highmark score majorly. They are:
- Your repayment history
- Your credit usage
- Life of your credit
- Types of credits you have used so far.
- New credit lines
6. What is the lowest and best Crif Highmark credit score?
The lowest possible score is 300, which indicates a bad Crif score, and the best possible score is 900. A score of 700 or more is regarded as excellent.
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