- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Equifax Credit Information Services Private Limited is a credit information bureau that follows RBI regulations for providing valid credit information reports to individuals to help credit institutions for analyzing their potential as a credit customer and is certified under Credit Information Companies Regulation Act 2005. Equifax Credit Information Services Private Limited is associated with seven institutions namely Bank of Baroda, State Bank of India, Kotak Mahindra Prime Ltd, Bank of India, Sundaram Finance Limited, Union Bank of India and Religare Finvest Limited.
They provide basic information that would support the decision making of approving a loan or credit for a person by analyzing their credit history. The information of individuals stored in the database can be accessed by both customers and lenders.
In general, Equifax offers two types of reports namely,
- Basic credit information report
- Enhanced credit information report
While former is a very readable credit report based on complete borrowers’ credit profiles, the latter is a visually detailed format of the basic written report. It provides charts and graphs based on the numerical data on the basic report.
Basic credit information Report
A credit information report is a report issued based on the credit history of an individual that includes both active and closed credit accounts.
A score based on the credit information is generated and its value lies from 1 to 999. The Higher score makes a potential credit customer as it means you have a better repaying capacity and you have proven record of timely payment of your EMI or dues.
In order to apply for a credit report from Equifax:
- You have to correctly fill an application form called Know Your Customer request form and send it to Equifax.
- Attach self-attested copies of identity proof such as voters ID or Aadhar card and address proof like ration card, driving license etc. All the documents provided should of the recent time period, which means it should be older than 3 months.
- A payment of Rs.138 is necessary if you apply only for the report.
- In case you apply for the credit score which would come along with a credit report and a total charge of Rs400 should be paid through valid demand draft payable at Mumbai.
- About 600 factors are considered to generate a single credit score and few top factors include past credit repayment history, a number of credit cards, a number of unsecured loans, and annual income.
The credit report issued contains a basic identification detail of a customer like their name, address, contact information etc. then a summary of credit information and details of recent financial activities is included. The report also mentions repayment history along with credit enquiries made by the person.
It can be obtained by any individual after completing few steps that include completing a KYC request form, providing relevant documents for self-identification and a successful payment. A registered individual can check it by login into the account and only your personal information report can be accessed.
Equifax has inputs from various sources across India and is one of the most trusted credit report company. A basic credit information report will have five sections namely:
1. Identification and contact section: This has confirmed application information, a consumer’s name, date of birth and age, address and identity information.
2. Credit summary: This talks about all the credits taken in form of loans, credit cards etc., and the means of managing the loans and repayment methods. The type of credits taken and pending over dues is also added.
3. Recent Activities: This talks about the latest credits taken and a presence of any delinquencies on the customer’s account and helps a credit institution identify the potential credit customer.
4. Account details: An account wise detail of repayment and credit is shown in this section and it is a vital parameter as a lender would get a clear picture of the number of credits taken by a customer and the time he or she has taken to repay it. It also reflects any delinquencies that are associated with the credit accounts. Lenders don’t prefer accounts that are completely settled or with a missed repayment as it would be a great risk for investing in such individuals.
5. Inquiries section: This section includes a history of credit enquires that is made by the customer, if there is are a lot of enquires it simply means that the customer has asked for credits in many institutions but did not get what he or she wanted, it also means that the customer has a poor repayment history. Hence this section is also very essential for the credit institutions.
Guidelines to maintain decent credit score
To maintain a good credit score or report one has to diligently follow these guidelines.
- First and foremost criterion is the timely repayment of the EMI or Credit Card dues. A lot of overdue and failure of repayment will reduce the overall score hugely.
- By providing clear and detailed information about the debts with the banks you can make sure to have a strong credit relationship with the bank.
- It is also important to maintain a payment schedule as you should be able to repay the dues on time as decided and indirectly indicate that you have good intentions to repay the loans that you take and you are not a likely threat.
- Credit diversification is another trick to impress that you do not credit hungry and will provide security to the loans received.
- You have to keep updating the data related to closure or repayment of the loans as it would make you have a clear record that wouldn’t contradict with the information provided by the credit institutions.
- Finally, monitoring while updating credit information may help you largely, as by casting light on the discrepancies with that on credit institutions and other information you can correct any mistakes that are shown on your credit information report. This will wipe away any score reductions that happened due to negative information.
The best way to have a great credit report is to manage your finances wisely and by maintaining punctuality in repaying all your dues to the bank. Compliance of these factors shall ensure that customer would have the highest score and finest credit information report.