The Equifax credit score is a three-digit educational credit score developed by Equifax. Equifax is one of the largest multinational consumer credit reporting agencies in the world. The Equifax credit score helps consumers estimate their general credit position. This credit score is not used by lenders and creditors to assess consumers’ creditworthiness. The range of the Equifax credit score model is between 280 and 850.
Key Takeaways
- If your credit score is between 760-850 then it is considered an excellent credit score in Equifax
- Equifax uses several factors for calculating the credit score and it includes payment history, amounts owed, length of credit history, credit mix, new credit, etc.
- Payment history is very important information because it helps a lender figure out the amount of risk it will take on when extending credit
- Having a long credit history increases Equifax’s Credit Scores
- If you open quite a few new credit accounts within a short period of time then it won’t help your credit score
The Equifax Credit Score Chart
The Equifax credit score is specially designed to provide an overview of your credit situation. Here is the Equifax credit score chart –
| Credit Score Ranges | Rating |
| 280–559 | Poor |
| 560-659 | Fair |
| 660-724 | Good |
| 725-759 | Very Good |
| 760-850 | Excellent |
How Equifax Credit Score Is Calculated
Different people have different credit scores and the reason for variation in credit score is some factors that determine the credit score. Equifax uses several factors while they calculated the credit score.
Payment History
This is the first thing a lender wants to know. The lender wants to check whether you’ve paid past credit accounts on time. This information is very important as it helps a lender figure out the amount of risk it will take on when extending credit. In fact, it is the most important factor in an Equifax Score. So make sure you keep your account balance in good standing to build a good payment history.
Amounts Owed
If you have both credit accounts and cash that doesn’t mean you are a high-risk borrower with a low Equifax Score. But, if you are using a lot of your available credit then it will indicate that you are overextended. So the banks would think that you are at a higher risk of default.
Length Of Credit History
Having a long credit history is good because it increases the Equifax Scores. But that doesn’t mean; if you don’t have a long credit history then you won’t get a good credit score. The rest of the credit score also plays a very vital role. This is what the Equifax scores take into account –
1. How long your credit accounts have been established
2. The age of your old account
3. The age of your new account
4. How long specific credit accounts have been established
5. How long it has been since you used certain accounts
Credit Mix
The Equifax score also considered the mix of your credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans. However, it’s not necessary for you to have all of these to get a high Equifax credit score.
New Credit
If you open quite a few new credit accounts within a short period of time then it won’t help your credit score. Moreover, if you don’t have a long credit history then it will create a negative impact on your credit score.
FAQs About Equifax Credit Score
1. What Is A Good Credit Score For Equifax?
Different credit score model has different credit range. So, the good credit score range will vary depending on the credit score model. According to the Equifax credit score range, a credit score from 660 – 724 is considered as good.
2. What Is The Average Equifax Credit Score?
The average Equifax credit score is 695.
3. Is 653 A Good Credit Score On Equifax?
Well, the credit score of 653 is just below the good credit score range of Equifax. According to the Equifax credit score range, 653 is a fair credit score.
4. Is Equifax 759 A Good Credit Score?
Equifax 759 is not a good credit score; in fact, it is an excellent credit score according to the Equifax credit score chart.
5. What’s A Fair Credit Score In 2021?
According to the Equifax credit score chart, the 560-659 score is a fair credit score in 2021.
6. What Lenders Use Equifax Only?
There are quite a few credit score models available and different lenders use different models. Equifax’s credit score model is only used by PenFed Credit Union Loan Company.
7. Which Credit Score Do Mortgage Lenders Use?
FICO 8 model is the widely used credit score and it is mostly used by lenders and Loan companies. Mortgage Lenders on the other hand use three different credit score models. They are –
a) FICO Score 2 (Experian)
b) FICO Score 5 (Equifax)
c) FICO Score 4 (TransUnion)
8. Does Capital One Use Equifax?
Yes, Capital One uses Equifax. However, it also uses other credit bureaus when checking a credit card application. Capital One uses Experian (36%), Equifax (32%), and TransUnion (32%) when making a lending decision.
9. What Does Equifax Check?
Here are quite a few things that Equifax checks. They are –
a) Personal information
b) Credit account information
c) Inquiry information
d) Bankruptcies
e) Collections accounts
References:
1. https://www.equifax.com/personal/education/credit/score/
2. https://www.which.co.uk/news/2021/06/equifax-revamps-credit-score-scale-what-does-your-rating-mean-now/
Last Updated on October 29, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
