What is equifax credit score?
An Equifax Credit Score is a 3-digit number that shows how good you are with credit. It comes from your Equifax Credit Information Report, which is like a snapshot of your loans, credit cards, and repayment history.
Every time you borrow or repay money, banks and other lenders share those details with Equifax. They collect:
- Your personal information.
- Number of loans or cards you have.
- Your repayment track record.
- The times you have applied for credit.
Using this data, they estimate your score with their own system.
The score usually ranges between 300 and 850. A higher number means better credit health. If you always pay on time and keep your debt levels under control, your score will naturally be stronger. On the other hand, missed payments or excessive borrowing can pull it down.
It was alarming for me to find that my Equifax and CIBIL scores were slightly different. However, it turns out that they may differ, because each uses its own method. Still, both simply show lenders how trustworthy you are with credit.