Understanding your Equifax Credit Score

Your Equifax Credit Score is a summary of your credit information held by Equifax. Finance and Utility providers may take into account your Credit Score when you apply for credit. Your Credit Score is derived from information held on your Credit Report. Your Equifax Credit Score will be a number between 0-1200. In simple terms, the higher your Equifax Score, the better your credit profile and the lower a credit risk you are.

There are a number of key contributing factors that are taken into consideration when generating your Equifax Credit Score:

  • Type of credit provider. The type of credit provider making an enquiry on your Equifax Credit Report (that is the type of credit provider you’ve applied for credit with) may impact your Equifax Credit Score. For example, there may be different levels of risk associated with approaching a bank, store finance provider, hire-purchase and utility company for credit. What’s more, research shows that there’s a different level of risk associated with lenders in particular industries. For example, a non-traditional lender may have a different level of risk than a bank or credit union
     

  • The type and size of credit requested in your application. Both the type of credit and size of the loan or credit limit you have applied for in the past can have an impact on your Equifax Credit Score. For example, mortgages, credit cards, personal loans and store finance may carry different levels of risk
     

  • Number of credit enquiries and shopping patterns. Every time you apply for credit and a credit provider obtains a copy of your report, an enquiry is added to your credit report. This can include any loan, mortgage or utilities applications you may make. Shopping around for credit and applying to a number of different credit providers within a short space of time may negatively impact your Equifax Credit Score. It flags you as a greater risk than infrequent applications for credit with a few credit providers
     

  • Directorship and proprietorship information Directorship and proprietorship information on an Equifax Credit Report may impact your Equifax Credit Score. If you’re a director or a proprietor it’s important to check the individual and commercial sections of your credit report
     

  • Age of credit report. The date your Equifax Credit Report was created may impact your Equifax Credit Score. For example, a relatively new file may indicate a different level of risk than an older report
     

  • Pattern of credit enquiries over time. The spread of activity over an Equifax Credit Report’s life to date can have an impact on your Equifax Credit Score. For example, a relatively new credit file with many enquiries may represent a different level of risk than an older file with only a few credit enquiries
     

  • Your personal details. Your Equifax Credit Score takes into consideration personal circumstances, such as age, as well as ‘stability factors’, such as how long you’ve been employed in your current position and how long you’ve resided at your current residential address, to help assess credit risk
     

  • Default information. Default information on your Equifax personal or business Credit Report, such as overdue debts, serious credit infringements or clearouts, may negatively impact your Equifax Credit Score. On the other hand, a lack of default information in your file may positively affect your Equifax Credit Score
     

  • Court writs and default judgements. A court writ or default judgement on an Equifax Credit report is an indicator of increased risk and may negatively impact your Equifax Credit Score. On the other hand, a lack of court writ or default judgement information would indicate a reduced level of risk
     

  • Commercial address information. Information such as location and the length of time you have resided at your current business address is a measure of stability and may impact your Equifax Credit Score

 

It is important to note that the way the Equifax Credit Score is used in practice by lenders may differ to the way it is displayed in the Equifax Credit and Identity portal. Each lender may also apply their own lending criteria and policies, and in some cases their own scores, which is why some lenders may approve your application while others will not.