Your Equifax Credit score summarises your credit history. It is presented in the form of a number between 0-1200. Equifax credit scores measure risk, therefore a higher score means a better credit profile.
How is your Credit Score calculated?
Your credit score is calculated from the information on your credit report, this includes:
- Your personal details
- Credit you have previously applied for, including the type and size requested
- Your repayment history including any overdue debts etc
- The age of your credit report
What effects your Credit Score?
- Late or missed payments
- Multiple applications in a short period of time
- High Credit Balances
- Defaults
- No or new credit history
Why are Credit Scores Important?
Credit providers use credit scores to determine your credit risk. This is how they decide whether or not to lend money to you, how much they lend and at which interest rate they lend the money. Lenders have their own criteria to assess your credit risk and can use other information together with your credit score to make this decision.
How can you improve your Credit Score?
- Ensure all your details are up to date by notifying lenders
- Pay all of your loans and bills on time
- Keep track of all your credit commitments and your credit score
- Avoid short term loans and buy now, pay later
- Close credit card accounts you don’t use
- Notify your lender if you are having trouble making payments
What is a Good Equifax Credit Score?
- Excellent: 841-1,200
- Very Good: 756-840
- Good: 666-755
- Average: 506-665
- Below Average: 0-505
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