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 the 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.
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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|
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.
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.
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 defaulting.
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
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.
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
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.
The average Equifax credit score is 695.
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.
Equifax 759 is not a good credit score; in fact, it is an excellent credit score according to the Equifax credit score chart.
According to the Equifax credit score chart, the 560-659 score is a fair credit score in 2021.
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.
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)
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.
Here are quite a few things that Equifax checks. They are –
a) Personal information
b) Credit account information
c) Inquiry information
e) Collections accounts