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What Is Equifax Credit Score

What Is An Equifax Score

What Is A Credit Bureau? / Equifax / TransUnion (Canada) / Credit Score / Credit Report / CREDIT

There are a number of different credit scoring systems used by credit bureaus. These scores factor in the information listed on your credit file and reflect your ability to repay credit. An Equifax score is calculated by Equifax, Australias largest credit bureau. Your score helps lenders assess your credit application when you apply for a loan or line of credit. Similar to a tool that ranks your risk, all credit information is used to predict the outcome of your loan within the next 12 months.

In addition to your Equifax Score, lenders will apply their own lending criteria. This is why you shouldnt completely rely on your score as an indicator of whether you should apply for the credit or not.

Transunion Vs Equifax: How They Differ

Were here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey.Read moreWe develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide.We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right.Read less

There are three main credit reporting agencies in the US: TransUnion®, Equifax®, and Experian®. To understand the role of these agencies better, take a closer look at the differences between TransUnion and Equifax.

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How Does Transunion Calculate Credit Scores

One of the scoring models that TransUnion uses to calculate credit scores is VantageScore® 3.0. This model scoring scale starts at 300 and caps at 850. Unlike with FICO where a good credit score is 670, VantageScore requires between 720 and 780.

When it comes to the TransUnion vs. Equifax comparison, both rely on some of the same consumer metrics to calculate credit scores. Below are the factors that TransUnion takes into consideration when using the VantageScore model:

  • Payment history
  • Used credit
  • Total balance
  • Recent credit applications and available credit

Now its time for a more detailed look at the key factors that credit score agencies take into consideration when compiling your credit reports and calculating your scores.

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How To Maintain Your Credit Score

One way to maintain your credit score is to try to stay within the 35% ratio mentioned above.3 Add up all your credit limits and multiply the total by 35%. Thats the amount you should ideally try to avoid exceeding when borrowing money or using credit.3

Avoid applying for too much credit

There are some downsides to having too many credits cards. You may be tempted to use them and spend more.

According to the federal government, you should also avoid applying for too many loans, having too many credit cards and requesting too many credit checks in a short timeframe.3 Thats because it could negatively impact your credit score too.3

Stay within your credit limit

Avoid going over your credit limit. If you go over your limit, it could lower your credit score.3

Overall, having a good credit score can help boost your financial confidence and security. So, congrats on taking the first step by learning how credit scores work and how you can improve yours!

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What Is Good And Bad Equifax Credit Score

How to Understand Your Equifax Credit Score &  Report

Equifax score

How did you get this score?

No History

You do not have a credit history as you have not used a credit card or have never taken a loan

300-549

Poor

You have missed repayments or defaulted on credit card bills or EMIs, You will be considered a high risk, and will find it difficult to get a loan or a credit card.

550-649

Fair

You have some irregularities like late payments of bills/EMIs or multiple credit inquiries, Some lenders will consider approving your credit applications, but your interest rates might be higher

650-749

Good

You have been regular with your credit payments, and had responsible credit behaviour, Most lenders will consider your applications, but you may not get the best deals

750-900

Excellent

You have an exemplary credit history, with no defaulted on payments, utilization of credit, etc, You will be considered a low risk of turning into a defaulter, and banks and lending institutions will offer you better deals on loans and credit

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What Are The Other Services Provided By Equifax

Here is a list of products and services offered by Equifax:Consumer credit bureau: This provides credit information reports and credit scores using specific algorithms and analytics. It also offers consumers a portfolio review where they use predictive insight to help cut losses and generate revenue.Microfinance bureau: Equifaxs microfinance exchange is a collaboration with Microfinance Institutions Network , and it provides Microfinance Credit Information reports, Microfinance Scores, and Microfinance Portfolio ReviewsMulti Bureau Solutions: This offers a single point of inquiry for data consolidated from various credit bureaus.Value-Added Services: Equifax offers a number of value-added services for customers, such as credit fraud and risk management strategies, portfolio management, collection products and solutions, industry diagnostics, and more.

Here is a list of products and services offered by Equifax:

Consumer credit bureau: This provides credit information reports and credit scores using specific algorithms and analytics. It also offers consumers a portfolio review where they use predictive insight to help cut losses and generate revenue.

Microfinance bureau: Equifaxs microfinance exchange is a collaboration with Microfinance Institutions Network , and it provides Microfinance Credit Information reports, Microfinance Scores, and Microfinance Portfolio Reviews

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Request Your Free Medical History Report

You have the right to get one free copy of your medical history report, also known as your MIB consumer file, each year. You can request a copy for:

  • Yourself
  • Someone else, as a legal guardian
  • Someone else, as an agent under power of attorney

You can request a medical history report online from MIB or by phone at 1-866-692-6901.

Not everyone has a medical history report. Even if you currently have an insurance plan, you won’t have a report if:

  • You haven’t applied for insurance within the last seven years
  • Your insurance policy is through a group or employer policy
  • The insurance company isnt a member of MIB
  • You didnt give an insurer permission to submit your medical reports to MIB

What Is Equifax How To Check Your Equifax Score

How are CREDIT SCORES Calculated? / Equifax / TransUnion / Credit Score / Credit Report / CREDIT

Summary: What is Equifax? Understanding that question is part of being an educated consumer. Learn what Equifax is and how to check your Equifax score so you can learn how to improve it.

For such a simple idea quantifying a borrowers creditworthiness with a number its amazing how many terms, companies, and concepts a consumer needs to know just to grasp the basics.

So when it comes to names like Equifax, TransUnion, Experian, FICO, and VantageScore, how can the average consumer keep it all straight? How do these terms relate to each other, and how do they influence a credit score?

Lets start by taking one of these terms Equifax and breaking down what you need to know.

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The Minimum Required To Calculate A Credit Score

For a credit score to be calculated, your credit report must contain enough informationand enough recent informationon which to base a credit score.Generally, that means you must have at least one account that has been open for six months or longer, and at least one account that has been reported to the credit bureau within the last six months. What are the minimum requirements to have a FICO Score?

What Factors Affect Your Credit Score

The two main credit scoring models, FICO and VantageScore, consider much the same factors but weight them somewhat differently. For both scoring models, the two things that matter most are:

  • Paying bills on time. A misstep here can be costly, and a late payment that’s 30 days or more past the due date stays on your credit history for years.

  • How much you owe. Credit utilization, or how much of your credit limits you are using, is weighted almost as heavily as paying on time. It’s good to use less than 30% of your credit limits lower is better. You can take several steps to lower your credit utilization. Scores respond fairly quickly to this factor.

Much less weight goes to these factors, but they’re still worth watching:

  • The longer you’ve had credit, and the higher the average age of your accounts, the better for your score.

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    What Is A Credit Score And What Is The Difference Among The Two Nationwide Credit Reporting Agencies Credit Scores

    A credit score is a three digit number, typically between 300 and 900, which is designed to represent your credit risk, or the likelihood you will pay your bills on time. A credit score is calculated based on the information in your credit report.

    The way your credit score is calculated and the contents of your consumer file may vary between the two nationwide credit reporting agencies . This is because not all creditors report to both agencies and there are different credit scoring models.

    While most creditors do report to both, you may hold an account with a creditor that only reports to one, or a creditor that doesnt report to any. There are many different credit scores used by lenders, including credit scores provided by the two credit reporting agencies, and credit scores that are custom built and used by a specific lender.

    Equifax Credit Reports And Scores

    Equifax credit score file One Time rate

    Equifax can provide you with a free copy of your credit report once every 12 months. You can also get a free copy of your credit report if you have been declined credit in the past 90 days or if you had an item corrected on your Equifax credit report.

    If you dont meet the criteria for a free credit report, you can pay for a once-off copy of your report or you can sign-up to a paid plan. This can provide up to 12 credit reports a year and your credit score monthly.

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    Everything You Need To Know About Your Equifax Credit Score And Report Plus What Affects It

      When you apply for personal loan, mortgage or , lenders will look at your credit report and score to help them decide whether or not to offer you credit, how much to offer you and how much interest to charge you.

      Equifax is one of three main credit reference agencies in the UK used by lenders when determining how much of a risk you are to lend money to and how much they can make from you. A number of factors detailed on your credit report make up your credit score, which ultimately places you in a rating group, ranging from poor to excellent.

      How Do You Check Your Credit Report

      On AnnualCreditReport.com you are entitled to a free annual credit report from each of the three credit reporting agencies. These agencies include Equifax, Experian, and TransUnion.

      Due to the COVID-19 pandemic, many people are experiencing financial hardships. To remain in control of your finances, you can get free credit reports every week through April 2022.

      Request all three reports at once or one at a time. Learn about other situations when you can request a free credit report.

      Request Your Free Credit Report:

      By Mail: Complete the Annual Credit Report Request Form and mail it to:

      Annual Credit Report Request Service

      PO Box 105281

      Atlanta, GA 30348-5281

      If Your Request for a Free Credit Report is Denied:

      Contact the CRA directly to try to resolve the issue. The CRA should tell you the reason they denied your request and explain what to do next. Often, you will only need to provide information that was missing or incorrect on your application for a free credit report.

      If you can’t resolve your dispute with the CRA, contact the Consumer Financial Protection Bureau .

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      Equifax Will Now Offer Credit Reports In Spanish

      Equifax will offer Spanish-translated credit reports for free, both online and via mail, the credit reporting company said Monday.

      The move will help more than 62 million Spanish speakers in the U.S. Equifax is the first credit reporting firm to offer the service.

      “We recognize there is a clear demand for broader availability of information in Spanish, and we created this Spanish-language report to meet the growing demands,” said Beverly Anderson, president of global consumer solutions at Equifax, in a statement. “We want to expand access to and understanding of credit, especially to vulnerable and historically underserved communities, so that they are empowered to move forward in all aspects of their financial journey.”

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      Why Are My Transunion And Equifax Credit Scores Different

      A Quick Guide to Your Equifax Credit Report and Equifax Credit Score

      When you log into your Credit Karma account, you can access your free credit reports and scores from both TransUnion and Equifax. Theyll likely be slightly different, and its possible they could be very different.

      Multiple factors could account for why your scores are different.

      • Like all credit-reporting agencies, TransUnion and Equifax use proprietary scoring models. And while credit scores are typically based on the same or similar factors including your payment history and number of accounts in good standing each credit-scoring model can weigh those factors differently.
      • The credit bureaus may have different information. Not every credit-reporting company will have every bit of information about you. Some lenders may report information to all three big credit bureaus, while others might report to only one or two. And a lender may report updates to different bureaus at different times. So, its possible that Equifax and TransUnion could have different credit information on your reports, which could lead to your TransUnion score differing from your Equifax score.
      • You may be seeing scores from different dates. A credit score is a snapshot of your credit profile at a specific point in time. Since credit scores can change over time, its important to compare scores from the same time period when comparing them across credit bureaus.

      What factors determine my credit scores?

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      Whats Impacting Your Score

      Below are the aspects of your credit profile and history that are important to your Equifax credit score. They are listed in order of impact to your scorethe first has the largest impact, and the last has the least.

      • Ratio of satisfactory trades to total trades in last 24 months.
      • Number of personal finance trades with high utilization in the last 3 months.
      • Worst rating for installment trades in the last 12 months.

      Mayjuly 2017 Data Breach

      Between May and July 2017, yet-identified hackers were able to use a known exploit on one of Equifax’ web servers that had yet to be updated to access the credit records of more than 140 million Americans as well as some British and Canadian citizens before the breach was detected and shut down. Equifax disclosed the breach on September 7, 2017, after determining the means and scope of the breach. The event was considered “one of the biggest data breaches in history.”

      Several consumers filed lawsuits in small-claims court against Equifax due to the breach, while Equifax later came to a $575 million settlement with the Federal Trade Commission to offer either a cash payment or credit monitoring for those affected by the breach. The data from the breach has yet to be seen on black markets or the dark web by security experts, making it difficult to identify the origin of the breach. However, in February 2020, the United States Department of Justice indicted four members of China‘s People’s Liberation Army on nine charges related to the breach, which China has denied.

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