Your credit score determines your ability to get loans or mortgages and obtain an apartment through rental agreements in various financial aspects. Your creditworthiness determination depends on lenders seeing how you handle money through your score.
Equifax India operates as the credit bureau in India through its legal entity Equifax Credit Information Services Private Limited (ECIS) which holds a Reserve Bank of India (RBI) licence under the Credit Information Companies Act of 2005. Each banking institution along with NBFCs and other financing organisations sends Equifax their consumer credit information each monthly period.
Credit score
The three-digit credit score indicates your creditworthiness through values ranging between 300 and 900. Your credit score calculation includes various elements such as historical borrowing data along with how you repay loans as well as your overall credit management practices.
- A higher credit score of 750 and above indicates reduced credit risk so your applications for loans face better approval possibilities and can acquire more favourable interest rates.
- When your credit score drops lenders may choose to deny your loan application and possibly provide elevated interest rates.
The Equifax credit score derives from the information contained in your credit report that shows your loans along with credit card activity, repayment records and credit request history.
In conclusion, checking your Equifax credit score through proper financial management remains essential to establish control over your funds. Your credit score will grow which will result in better loan conditions through monitoring your credit report and correcting errors and practicing credit responsibly.
